Adverse Credit Cards make a surprising comeback

May 20th, 2009 by writer | No Comments | Filed in Press Releases

Just one short year ago credit was loose and freewheeling. Almost anyone could qualify for a low interest credit card or long float card. Companies like Barclays and Natwest gave out cards like sweets at the fair. But it appears the circus has left town and took along with it all of beloved easy credit. Not only are credit card companies in the UK no longer quickly approving any warm body that desires a card they have also cut back the credit limits on 90% of their customers. Helpful consumer credit advice website, Credit choices reports that banks are actually cutting back limits as quickly as principal is paid. This means that a card holder who pays down a card with a 2000 pound balance to 1000 pounds will immediately see the spending limit on that card reduced to the amount of the1000 pounds balance due. Lovely isn’t it? For many people who depend upon their credit cards as a source of emergency funding this is a catastrophe. So much so that unscrupulous lenders are taking advantage by offering super high interest paycheque loans as an alternative. A simple and wise solution is to apply for adverse credit card. Almost everyone is approved for these cards. The interest charged is quite high but does not kick in until almost 5 weeks from the time of expenditure. This leaves adverse credit cards on equal footing of lower interest cards such as the Natwest Credit Card offering almost 2 months time before balances become due. In either case these are excellent vehicles for a bridge loan to handles minor financial emergencies.

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Adverse Credit Cards are a great idea right now

April 19th, 2009 by writer | No Comments | Filed in Press Releases

Just two years ago, when credit was easy to come by, there was really no need for anyone to use adverse credit cards. With banks handing out low interest cards freely, why would anyone want a credit card that charges upwards of 30% in interest yearly?

Today the many of the low interest rate cards are difficult to get and people are replacing lowered credit limits on these with free lending limits from companies that issue adverse credit cards. Why would they do this? Using information gathered at free consumer credit advice website Credit Choices, it was determined that most people are currently relying upon their credit cards as a short term loan vehicle to bridge the gap in the event of smaller persona finance crisis.

This of course representing the needs of the middle and upper middle class, those with incomes below £60.000 per year. So, why choose an adverse credit card over, say, a Natwest Credit Card? First, the credit rating need to be approved for an adverse credit card is fairly low. Almost everyone is approved for these cards. Second, the smart users of adverse credit cards are only using them for emergency funding. As with all credit cards adverse cards allow a certain length of time before interest accrues. Thus, any credit card can be used interest free as a means to deal with a short-term lack of funds. While the Natwest credit card might be a better long-term choice as it only charges 175 or so APR, the Capitol on card at 30% is no less helpful if one plans on paying off the balance promptly.

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Get A Credit Rating Check Before You Apply For Adverse Credit Cards

March 18th, 2009 by writer | No Comments | Filed in Press Releases

It is almost impossible to live today without having some kind of credit card. If you wish to reserve a flight, hire a car or even stay at a hotel a credit card is essential. Unfortunately many people have questionable credit thus making it very difficult to receive a credit card. They then apply for what is known as adverse credit cards. These cards charge a higher rate of interest as compensation for taking a greater risk in lending. Put simply they loan money to people they are not sure will pay it back. This risk is spread among all adverse credit card holders through a higher rate and tougher terms. There are plenty of good reasons to use these cards such as their wide acceptance when traveling but before anyone pays 30 and even 40% per annum in interest they should be absolutely certain they couldn’t get a better deal on a more conventional credit card. The way to be sure you are getting the best deal your credit entitles you to is to arrange for a credit rating check. This is easily done through Creditchoices.co.uk. Credit Choices is a free personal finance management library filled with helpful knowledge and tools.

Currently there are three major credit-reporting companies in the UK. Any of these can get you a copy of your credit rating. Knowing this rating before you apply for a credit card allows you to negotiate better deals and apply for cards with the best rates of interest. At the Credit Choices site there are many helpful credit rating check offers from all of the United Kingdom’s best reporting agencies. Your credit report will help you if you are applying for any kind of loan. Banks and credit card companies don’t look for ways to give you their lowest rate. You must demand it and to do so you must know where your credit rating stands.

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Supermarket Credit Cards – What Are They, And Are They Worth it.

February 26th, 2009 by admin | No Comments | Filed in Press Releases

The more the credit crunch bites, the more people look for extra ways to save money. One option open to consumers in the UK is to actually save money up when spending it. Whilst at first this may seem like an oxymoron, it is possible.

Most of the major supermarkets offer their own brand of credit card these days and, whilst int he past the cards on offer were merely ‘store cards’ used to store up points, these days you can find true credit cards on offer.

Some Supermarket credit cards these days even boast 0 balance transfers offers, and interest free purchases. What is more, some supermarket credit cards offer even better deals when you spend on the card in the store of origin. By origin we are talking within the same brand of store, not geographical location of course.

So, if you do tend to shop in a particular supermarket on a regular basis, you may well find it is worth applying for a credit card from that store. In return for your purchases you may find you are rewarded by earning far more in store points than you would normally acquire for the same shopping basket of goods bought for cash, or on another company’s credit card.

As with any application for credit though, you should fully compare your options before applying. A comparison website such as Creditchoices.co.uk can give you a great amount of information on anything from supermarket cards to adverse credit cards, and help clear the fog that all too often envelopes your credit options.

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Credit in 2009?

January 14th, 2009 by admin | No Comments | Filed in Press Releases

The worry for many at the start of 2009 is job security and enough cash to pay the bills. Whilst it is the government and business’ responsibility to safeguard the infrastructure we all take part in, we must take responsibility for our own finances. But the much vaunted ‘Credit Crunch’/Global Recession/Financial crisis has turned the attitude of many towards the hysterical. However, unless the banks keep lending they will face the same fate as those who face redundancy. Loans and credit will still be available to those the banks consider to cautious or responsible borrowers.
 
If you can afford to meet the payments you make on your card, now is a good time to be using credit. Even if your credit score is currently patchy, consistently using a card responsibly in grim times will certainly help improve the credit score. And, if you can be strict enough never to spend more than you can clear in one go and always pay on time, then you don’t pay for the privilege.
 

Adverse Credit Cards?


 
Many people think if you have a poor credit rating, the only cards available would be adverse credit cards. They are known to charge interest rates of around 40% APR and unless you can be certain of clearing the balance every month they should be avoided as the interest will accrue at an alarming rate that can quickly become unsustainable.
 

Interest Free Credit Cards?


Despite difficult times many of the lenders are still offering interest free credit cards, they may be slightly more difficult to acquire and the terms are not as generous as the days of ultra-cheap credit, but the lenders will keep offering such cards as these days there will invariably be a transfer fee that ensures them a constant revenue stream. The credit might be being slightly crunched, but if you are a responsible borrower your use of credit is beneficial to the lenders and as such, encouraged.
 
 
 
 
 
 
 
 
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A Savings Calculator for quiet times

December 12th, 2008 by admin | No Comments | Filed in Press Releases

Many Banks and financial institutions are currently trying to change the tone of the recession caused by irresponsible financial practice. If we look to the advertising stances offered by the main institutions the themes seem to be trust and understanding. ‘Trust us with your savings’ and ‘we understand difficult times’. So, if you are a responsible borrower is it all doom and gloom or are there still opportunities available. The banks are always shouting about the value of their interest rates they offer to savers but what do they really offer in terms of monetary growth? We often just look at the figures and then choose the biggest number but it is wise to know what you are getting for giving the banks your money. They will be investing it and using it to make more money but to find out what that means to you, it would be wise to run the numbers and use a savings calculator . This way you can find out how much the banks will pay you for the privelege of holding your money for a year, if you’re not impressed then maybe it’s time to call for a better rate from your bank or move your money elsewhere.
 

What if I have had Adverse Credit Issues?


 
To turn to difficult times, many of us at some point or other have struggled financially, and that has led to some of us having very poor credit history and therefore being ineligible for credit or loans in the future. In response, we are offered Adverse Credit cards , seen as a way to recover our credit worthiness and improve our ‘credit history’. Are they all they claim? Both yes and no. It is possible to use one wisely and avoid any charges and any interest, by paying off the full balance every month before the the minimum repayment date, after a year or so you should have a proven credit history that should allow you to get more favourable terms. However, if you you can’t meet the entire balance before this time then interest will be charged at a rate which averages 40%, if you make the minimum payments on a few hundred pounds you may find that you will finish the repayments at the end of the next recession. As ever, the devil is in the detail. So especially if times are tight or you are hoping for a decent return on your investment- check the small print.
 

Benefits of Carrying Out a Credit Rating Check


 
Whilst proving your credit worthiness and responsibly servicing your debt, it is advisable to know where you stand. Apply for a Credit Ratings Check so you are aware of what issues have caused you problems in the past and what to avoid in the future. Also, only ask for credit you are likely to get and really need, asking for large loans and being refused can also have a negative effect on your credit rating.
 
 
 
 
 

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Adverse Credit in Adverse Times

November 20th, 2008 by admin | No Comments | Filed in Press Releases

With the credit crunch impacting on all countries around the world, personal finances are not far from our minds. Many people have been using various offers from credit card companies such as 0% balance transfer cards and interest free cards for a set period. Though with credit in short supply and belts being tightened across many business models are these offers still going to be available and are they still a good idea?
 
The first question to answer is ‘are they still a good idea?’ In times of financial uncertainty a credit card with good terms can be an excellent way of smoothing out the demands on your finances over a month so you are never short and don’t have to pay large interest payments. If you aren’t clearing the balance every month and are creeping closer to your credit limit, you may be living beyond your means and will need to address this before you reach the limit. Long term borrowing on a credit card is expensive and not the most effective way of borrowing. If you have shifted a balance to a new card with an interest free period you can be saving a good deal in interest but you need to be certain when the period is over or you may have a nasty shock if the balance suddenly starts increasing. Now is also the time to be scrutinising the small print, because even great deals can have less than obvious pitfalls that quite legitimately make the providers more money. For example, check whether new purchases are also interest free or you have to clear the transfered balance first. This will be clearly stated in the contract you sign but the text might not be as large as the headline offer, and let’s face it few of us ever read the small print.
 
Two options well worth investigating are Supermarket credit cards and Adverse credit cards . As the supermarkets are doing a roaring trade at all times they can afford to be generous with the offers to turn shoppers into financial customers. Adverse credit cards are only worth considering if you have bad credit history and want to improve it. As the interest rates are around 35-40% you would be foolish to consider using one unless you intend to pay off the full balance at the end of every month. Though if you are responsible borrower you can quickly improve your rating and then be eligible for more favourable terms.
 
The simplest way to find out what is best for you is to use a comparison site like Creditchoices.co.uk here you will be able to view all the options side by side and use the articles on the site to ensure you select the best deal for you circumstances.
 
 
 
 
 
 
 
 
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