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Step 3 Sub-Prime
Credit Cards & Personal Finance
Introduction...
Being in the position of having less than perfect credit can seem
hopeless. However we feel that if you use the methods explained
throughout CreditMania, you'll be able to get back on your feet soon.
Using a secured or unsecured sub-prime card can only improve your
situation.
Most of the companies that issue such
cards report them to your credit files as regular credit cards.
And they can often times convert into unsecured cards once you have
proven to be worthy.
We recommend starting with 2 of these
cards. Make your payments early and on time. And always pay
more than the minimums. If you do this in conjunction with other
strategies laid out on CreditMania, you will see results.
Please feel free to go to our
forums
area and ask about the credit card offers for sub-prime consumers.
You'll find important information there to help you make an informed
decision.
The Basics...
First of all let's be honest. If we are having to apply for a
visa or master card, with one of the sub-prime card issuers, then we
have poor credit. The prime card companies won't touch us with a
ten foot pole. So when we seek credit and have to use the
sub-prime route, we need to accept the fact that we are going to pay
dearly for that privilege. Sub-prime card issuers are not cheap.
They have many fees associated with them. And they carry high
interest rates.
Honesty to destiny...
So we use these folks to get us some positive lines of credit in our
consumer credit files. And our goal should be that once we have
been honest about improving our credit, and finally begin to receive
offers from the prime issuers, then we cut these guys loose. We
cancel them pronto! And our destiny is revealed.
Beware of those extras...
Many of the sub prime issuers try to pressure you into purchasing
extras for your account. An example might be credit protection.
These programs are truly not necessary and only add to their profits.
The best thing to do is take the card and nothing else. It does
not improve your chances of receiving credit increases if you fall trap
to their marketing schemes.
ALWAYS Read the fine print...
Probably one of the most common reasons we have gotten into the messes
we are in is due to not reading the fine print. Always read every
piece of paper you receive from these card issuers. Never ever
throw anything away. And if you are not sure what the fine print
means, then come on to our discussion forum, and ask our people what it
means. Be an educated consumer, and you'll be happier for it.
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