Avoiding Sub - Prime Borrower Cards
31874
Finance
May 19, 2007
peter1402
Avoiding Sub - Prime Borrower Cards
If you have had bad credit in the past, it might seem hard to get a credit card that is not more expensive than it is worth. If you have had bad credit in the past or not, it is important that you avoid sub-prime borrower cards. These cards are very expensive, and if this is your only option you should not get a credit card. If you want some advice on how to avoid sub-prime borrower cards then this guide can help you. What is sub-prime lending? Sub-prime lender is not a new type of lending, but it is growing in popularity. This type of lending is offered to people who have poor credit or who do not meet the requirements of other lenders. Although this might seem like a good thing, often the drawbacks and costs of such lending far outweigh the benefits. What are the costs? Although it might seem strange that a lender would want to take a risk giving a credit card to someone is a risk in terms of being able to pay the money back, they can actually make a lot of money from it. By offering poor credit consumers credit cards that they could not get anywhere else, but with massively high interest payments and fees, they can make money even if some people are unable to pay. You might get a 500 credit limit, but 200 of that could be fees and the interest could be 30% or more. Who gets targeted? Mostly people with poor credit ratings get targeted for such cards, although other groups of people can end up being offered these cards, such as the self-employed. If you are offered one of these cards you should definitely decline. Even if your credit is bad you should not have to pay such an amount for a card. If there are no other options open to you, then it is likely that having a credit card would be a bad idea for you anyway. Alternatives If you do want a card but have poor credit, then there are options open to you. If you shop around online you should be able to find a good deal that has reasonable rates and good levels of service. If you are unable to get a regular credit card but you need something to repair your credit history, then look at getting a secured card. These cards require you to secure the credit by putting up something as collateral. Although these cards do not offer you much in the way of spending power, they are a lot cheaper than sub-prime borrower cards. Seek advice If you are having problems finding a credit card that does not have extremely high fees and want some help, then consult an independent financial advisor for some advice. They will be able to tell you honestly what your options are, and which products to avoid. If you look around and avoid the extortionate sub-prime lenders, then you will end up with a much better credit card deal.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Personal Loans and Loans
send email to peter1402
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
One of the first things you need to do when you are considering buying a home is to determine how much home you can afford
Category:
No homeowner wants to face foreclosure. Losing a home can be one of the most traumatic financial events in a person's life
Category:
There are some occasions when bad credit marks are legitimate and will be on your credit report
Category:
Make your payment as quickly as possible and you can avoid having these late payments haunting you in the future
Category:
If you are someone who enjoys shopping online but are concerned about the safety of your credit card details
Category:
If you have any questions about your loan or the interest that is being charged ask the credit person to explain it to you in detail
Category:
For the most part, credit card applications are fairly identical in what they want to know about you and your finances
Category:
All of these FHA mortgage loan programs can help new or existing home owners to get good deals with lenders
Category:
If you have just gotten a new card with a great rate, you might want to take another look
Category:
Many consumers are not aware of the fact that their credit score can have an effect on their insurance premiums
Category:
There are many types of insurance available. Home owner's insurance, automobile insurance, life insurance, to name just three
Category:
A brief explaination of deferment and forebearance, two options available to student's with loans when faced with financial difficulties.
Category:
A brief discussion of money saving tips for a Disney vacation.
Category:
5 key points to keep in mind when shopping for the best credit card for your small business.
Category:
Many local banks also offer online banking and that is something many consumers find useful
Category:
A discussion of some of the interesting places to visit along Florida's Gulf Coast.
Category:
An explaination of consumer credit counseling and debt management programs.
Category:
Discusses the pros and cons of various debt consolidation options.
Category:
Other links at Finance
Many people come into the law of attraction and personal development realm thinking that they have things to change. That in order to attract, manifest, and start living the life of their dreams, the life they truly want to live, that they have to become
Category:
Hedge Funds guide investors in making a profit in high risk investments. Hedge Funds use technique called leverage. This is when the capital from a company's investors is combined with borrowed money from a bank.
Category:
Being the boss of your very own online business has its advantages and disadvantages. On one hand, you do not have anyone telling you what to do. On the other hand, you do not have anyone to give you that extra push or motivational support when you are fe
Category:
Protecting yourself from credit card fraud has become a neccessity in protecting yourself from other forms of financial fraud. Here are a few basic tips.
Category:
Direct Debit is a system by which monthly payments are taken directly from your account
Category:
Site Sponsor
Directory Statistics
Articles: 68285
Categories: 501
Yahoo Entertainment
