Another Chance for Clients with Bad Credit

Who says bad credit cannot get you the credit card deal you need? More credit card companies are providing the loans subprime clients need, however these are all for a huge price.

According to Equifax more financial intermediaries are lending to customers with credit scores that are lower than 660. In fact, the ratio of these lending increased to 41% in 2011 with banks spending almost 1.1 million for loans for subprime borrowers.

However, there were new regulations that were imposed for the transactions with clients with low credit scores. One of these is the increase in credit limit for the clients by 55% from the previous years to last year.

According to Credit.com’s Beverly Harzog, it was more difficult for people with bad credit to get loans last year, but now that financial institutions are starting to ease up, and are realizing that they need to expand their businesses in order to get higher profit they gave subprime lending another shot.

But the generosity that banks and other credit lending institutions are offering to clients with not-so-good credit comes with a bigger price. Not only are the terms strict and sometimes unfavorable for the clients, the interest rates that the banks impose are also very high.

It is wise to always put in mind that the lower your credit score is, the higher credit interest rates would be offered to you.However, to save consumers some slack, here is one credit card that offers decent deals for subprime lenders.

The First Premier credit card, this is especially created for clients with low credit scores and it charges about $200 annually, and has a 36% APR. Experts’ advice to clients is to read the terms and conditions first before getting credit cards. This is to prevent you from falling into the trap of institutions that charge fees that are too high for you.For clients with really bad credit, a secured credit card is the best option for you.

Many people find it difficult to manage their financial needs due to recessions and unexpected events like an emergency, a divorce, hospitalizations and many more. This leads them to fall into bad credit. Those with bad credit and wish to get out of that state can get a secured credit card from Orchard Bank.

This card will make clients deposit a minimum of $200, the APR is not high at 7.99% and the $35 yearly fee is not charged to consumers for the first year. Just the thing you need to get you back on track.

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Filed under: bad credit • Credit • Credit Score • line of credit • very bad credit

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