Credit Cards for Bad Credit with High Credit Limit
There are a considerable number of problems regarding credit cards and credit reports that are being experienced in the post recession period. In the turbulent times of economic recession from 2007 to 2010, companies drastically suffered several losses, and had to lay off their employees. In such a scenario, people could not repay their loans and credit card bills. This resulted into a considerable number of bankruptcies and foreclosures, not to mention the countless massacres of credit reports. The general trend of the credit sector was going downhill with credit card companies and lenders facing drastic losses. The current trend with the receding tide of the economic recession and economic bubble is somewhat different. As, credit card companies have started providing people with services such as high credit limit credit cards.
Credit Card Features
You will see several marquees flashing several offers of post bankruptcy credit cards to rebuild credit or credit cards for bad credit history. Now, there are also some important variants of the credit cards with bad credit. A prominent one is the high credit limit credit card.
Credit cards for bad credit have become readily available in the credit card market, credit providers such as Orchard Bank, Centennia Cards and Aventium have started providing credit to people whose credit scores have dropped below 500. You will get several other such names upon searching the web. These credit cards basically have a variable APR (Annual Percentage Rate). And the rate that is actually applied depends upon two things, namely credit worthiness and prime rate. The APR also depends upon the nature of the transaction for example, a higher rate is applied for balance transfers, and an exorbitantly high rate is applied for overdraft facilities. Companies such as VISA also provide prepaid card services for bad credit scores and credit ratings, while MasterCard also offers secured credit cards. Basically, credit card companies approve the cards on important services, your monthly income from a job and its salary projection.
If you are searching for credit cards for bad credit with high credit limit. Out of the two the one having a genuinely high credit limit is the secured credit card. Secured credit cards are forms of secured debt where the credit card applicant has to pledge a security with the credit card company, in order to give the card a collateral. Such a pledged asset can be sold off by the credit card company to recover losses, if the card holder defaults a set of payments. The drawback of such credit card is that there is a risk of losing the asset, also having a negative effect on the credit report. To avoid such a risk, it is advisable to have a prepaid credit card, as such cards do not have a very high credit limit. You will have to 'load' an amount into your account and an amount will be provided as an overdraft for your card. An excellent variant of such credit cards is a secured card, low fixed rate credit cards. In such a case the credit card will have a fixed, but low monthly, charge and interest.
Factors to Consider
There are some brief facts that you can take into consideration while zeroing down upon your credit card:
- Security demanded
- Credit limit
- Effects on credit history and resort
- APR and its upper and lower limit
- Charges such as APR plus the additional fees that you would owe to the company
