Probably the most notable activities taking place online today is selling and buying which is called e-commerce. Plenty of internet users are searching for items that will resolve their problem or perhaps enable them to understand more about a subject or demanding issue.
It is nevertheless noticed that many of these users have difficulties getting credit cards for his or her transactions and a few that have tend to be afraid of making use of it online due to the fear of losing their own cards to on-line hackers and scammers.
To resolve this issue, business application developers created the Virtual Credit Card (VCC).
Exactly what is a Virtual Credit Card (VCC)?
It’s a non-plastic pre-paid credit/debit card intended for transactions. The main distinction between a normal credit card and vcc is you can’t see or feel a virtual card i.e. it’s not physical in contrast to the plastic card which you’ll see and touch. Just like the regular credit card, it might be a Master or Visa Card with the details of an ordinary card. Additionally, it offers the regular credit card numbers, CVV/CVV2 Numbers and also Expiry Date.
You can use them in standard online transactions as well as for verifications online on a website including Amazon, eBay, AlertPay, Facebook and so on. There aren’t any limitations to the type of transactions that may be made with a VCC. There is no special method of obtaining the cards. There are lots of internet sites online selling them. Many of them accept payment for your cards via Paypal and Liberty Reserve. You just need to place an order and then pay for the equivalent amount for that card denomination you require.
Even though VCCs have a great deal of advantages, some websites may possibly request you to scan and send VCC you used in transaction on their website to verify your own name on the virtual credit card.
Enjoy online shopping using your VCC.
Trying to obtain a credit card when you have a bad credit score can be a stressful situation, but the good news is that you can still be able to get approved even if your credit rating is not so good. There are credit cards for bad credit that are designed for people that are not able to qualify for regular credit cards because of their bad credit history. It is not like the good old days anymore when a bad rating on a credit report could hinder you from getting a credit card.
However, one thing that you should know before applying for these types of credit cards is that they carry very high interest rates. Even if you get approved, you will pay up a significantly higher amount of money as interest. On the positive side, most instant approval credit cards with bad credit usually do not require a down payment. They can help you a great deal when you are caught in an emergency situation that you cannot find any other way to fund it.
The following are the top 5 things you should do when applying for credit cards for rebuilding bad credit.
- Compare Offers From Different Companies
Before applying for a credit card with bad credit, you should take your time to compare as many offers as you can from different credit card companies. By doing so, you will be able to make sure that you are getting the best terms for your needs.
The best thing to do when you are in this situation is to choose a secured credit card. This is because the secured credit card charges the lowest interest fees and offers the highest chances of approval. You should try to avoid prepaid cards by all means.
Even though some people usually have the notion that the prepaid cards can help them to build their credit, they can have negative effects on your credit score in the long run.
- Know Which Companies To Avoid
There are some credit companies out there that target people that have bad credit scores for all wrong reasons. These companies usually charge an application fee, charge very high interest rates, offer very low credit limits, charge very high late fees and collect aggressively. There are some that even charge an annual fee.
If you come across lenders that have the above-mentioned attributes, you need to avoid them by all means. They usually use their card as a tool for generating fees for themselves rather than providing borrowers affordable access to credit.
When it comes to collecting back the money that they have lent you, they will do it aggressively without even considering your situation or explanation that you might have.
- 3. Build Your Credit For The Future
If you have a bad credit rating, you can obtain credit cards for bad credit and then use them in a wise way to improve your credit rating. You should strive to maintain good discipline and always make smart credit decisions.
One of the things that you can do in order to boost your credit rating using credit cards with bad debt is to maintain low balances. You need to understand that credit cards are not free money, so you should avoid spending frivolously when you get them.
In order to avoid accumulating a lot of unnecessary debts, you should make a point of paying off the balance every month.
- Avoid Borrowing
You will need to minimize or avoid borrowing especially if the card options that you have for rebuilding bad credit come with sky-high interest rates. You should try to use money makeovers that can help you cut down on your spending habits. You will need to learn how to do a proper budget based on what is really needed and what is just wanted.
The reason why you should avoid borrowing is to reduce the burden of debt that you will be required to clear. If you only focus on the credit cards with bad debt without borrowing a lot of money from friends or other sources, it will be easier for you to pay back in a timely manner, and as a result you will be able to improve your credit rating.
But if you borrow a lot of money from different people or financial institutions, the amount of debt that will be on your hands will become unbearable. It will become really hard for you to try boosting your credit rating using cards for bad credit.
- 5. Know You Credit Score
In order to be approved for a good credit card for bad credit, you typically need to have a credit score of 650 or higher. They are a lot of sites on the internet that you can use to evaluate your credit score, for instance CreditKarma.
Besides a good credit score, you are also going to have a better chance of being approved for a good credit card for bad credit if you have a job. Most creditors will be willing to approve your credit card once they see that you are employed and have a minimum income.
If you have freelance work or you work as a contractor, it is likely to be harder for you to get approved for the credit card financing.
Your ultimate goal for applying for these kinds of credit cards should be to improve your credit score. Nowadays, you will find numerous offers of credit cards to choose from, including instant bad credit loan approvals, bad credit instant guaranteed credit cards, instant credit card approval for bad credit, just to mention but a few.
You have to be very cautious when choosing these offers because choosing wrongly could end up landing you in a bigger financial problem. You need to make sure that the credit card provider is not going to charge you unscrupulous program fee, or other fees such as annual card fees and annual fees.
The credit company should help you improve your credit rating, not make it worse than it already is. There are good credit companies out there that have the best interest of their clients at heart. If you search for them patiently, you will not put yourself in a bigger financial mess when applying for credit cards for bad credit.
Getting a personal loan if you have a bad credit history is not easy. You will need to find a lender that is transparent about fees and rates, flexible on terms, and has the willingness to view you as more than just your current credit score. You will also need to watch out for common scams and predatory lenders that might end up keeping you trapped in a cycle of your loan.
If you have a bad credit, it likely means that you cannot qualify for ordinary bank loans because there interest rates will be very high. If the situation is really bad, you may not be able to qualify for a traditional bank loan at all.
However, even if your credit score does not allow you to get traditional bank loans, it is still possible to get a loan if you have bad credit. You will just need to make smart choices and start rebuilding your bad credit.
The following are the top 5 things to do when applying for loans with bad credit.
- Know Your Credit Score
It is very important to know your credit score before applying for a loan. There are many free credit score sites where you can get comprehensive details on your credit report and score. You will need to visit some of these sites and know where you stand.
If your credit score is below 580, it can be quite difficult to get personal loans. You should review your report and figure out if there are any inaccuracies.
Some credit reports usually have some kind of mistakes that could lead to denial of loans. So if you find errors on yours, it can be something to smile about because chances of improving your credit card score will be high. This will ultimately increase your chance of getting approval for a loan.
- Start With A Friend Or Relative
If you know for sure that your credit score is poor and you will have trouble securing a loan from a bank or another lender, you should consider getting the loan from a friend or relative that would consider extending help to you when you approach them.
Even though approaching friends or relatives may be uncomfortable for some people when it comes to money issues, it could be the only way or best way to get the much needed finances. It can also help to eliminate the very difficult and time-consuming search for the right lender.
When getting a loan from a friend or relative, it will be a good idea to put everything in writing and include an interest rate. This will make the person feel more comfortable about the whole situation.
- Check With Your Bank Or Credit Union
The bank where you have your money or credit union at your workplace are among the best sources for getting personal loans if you have a bad credit history. The advantage with these sources is in familiarity.
Even though it is not guaranteed that a bank will give you a loan if you have a savings or checking account with them, it is possible that it might relax some standards if you have been a loyal customer.
Some companies usually do not have credit unions. But that should not be something to worry about because if you are employed and a credit union knows that, they can give you the money because they have the assurance of getting it through a direct withdrawal through your paycheck.
But it will be much easier if your company has a credit union because you will not go through a lot of trouble to get your loan application approved.
- Payday Loans
Payday or cash advance loans can also be a great way of getting personal loans if you have a bad credit report. However, you will only need to use them if it is a temporary emergency and you are sure of paying back as soon as possible.
The payday loans usually have extraordinarily high interest rates, so you need to know beforehand how you will pay them back before you get them. If you delay repaying them, you might end up making your debt situation worse than it already is.
In a nutshell, this kind of loan involves an amount plus an interest that you are supposed to have repaid back by your next pay. If you cannot come up with the amount to clear the loan in the time you will be given, the amount of interest will increase. This can make it hard for you to catch up with the loan.
- Search Online
When you know your credit report and score, you can use that information to look for credit companies that deal with people that are a situation like yours. Search for companies that are willing to give loans to people with your credit score as well as general credit record.
You will need to explain to the credit companies what you absolutely need. You should also be ready to explain to them any difficulties or inconsistencies that you might be having in your credit report, for instance a collection or bankruptcy event.
The best place that you can search for a reputable company that offers bad credit personal loans online is the Better Business Bureau. Never make a mistake of getting a loan from an online company that you do not trust. Always make sure that you deal with a human being on the phone when making inquiries or handling other processes.
Even as you try to get loans with bad credit using the abovementioned methods, you should try harder to rebuild your credit and improve your credit score so that you can be able to access ordinary loans from banks and other financial institutions. The process of rebuilding your credit may feel overwhelming at first, but if you are determined to make sure that your credit report is good, you will figure out strategies that can help you get the money you need and also be in control of your finances.