subject: Credit Card Applications And Fair Credit Credit Cards [print this page] A credit card is a small card made of plastic used as a system of payment. It gives authorization to its holder to purchase goods and services up to a certain limit known as the credit limit. This credit limit is usually a predetermined ceiling beyond which the user cannot access whatever services they desire to purchase. A credit card is safer and convenient to carry and use as compared to cash.
Applications for credit cards are readily available online in most countries where its use is widely spread e.g. in the United States and the UK. To keep track of credit card usage, credit card companies and banks keep a credit score or rating of each of its customers. Depending on how well the credit card holder honors their payment commitments, a score of good, fair and bad are awarded. These scores affect future intentions of the card holders to apply for another credit card or loan, as they indicate creditworthiness. A credit score however is not the only automatic guarantee for future approval for a loan or credit.
There are plenty of great offers for fair credit cards, even online. With a fair credit history, one does not have to suffer the same fate as a person with a bad credit history. Their annual fees are low or have none and charge low fees for balance transfer. To ensure that one does not further worsen their situation financially, it is important to find the best card. As a fair creditor, you should know what to look for and what to avoid in a credit card as different lenders have different charges, incentives, conditions and perks.
In some cases, lenders may actually be willing to negotiate on interest rates, monthly and annual payments, billing systems and fees. As much as one may be willing to repair their bad credit history, they will still be considered a risk and may not get the best of terms possible. The better one is able to manage the first fair credit card, they better they can negotiate on the next.
With a credit card for fair credit, it is important to consider the credit limit to apply for. Make sure that the monthly repayments are made on time to avoid incurring interest charges. All credit cards have an interest free period where if bill payments are made within that time, no interest accrues on the amount to be paid. This in the long run also allows you to save as you avoid unnecessary expenses.
As you improve on your credit scoring, so shall you be able to raise the credit limit availed to you. Another trick to improving credit score is to avoid using the cards monthly credit allotment in full. This gives the impression to the credit bureaus (your lender has the responsibility of reporting your credit score to major credit bureaus) that you are responsibly using your credit. A positive present record lowers the effect of a bad past credit record.
