Connect with us

Bad Credit

5 Credit Card Bonuses for Bad Credit (2019)

Published

on

Folks with bad credit frequently assume they are consigned to no-frills credit cards, if they can get a card at all. We’re happy to report that you may be able to do better with a credit card that offers bonuses for bad credit.

The credit cards in this review give you additional value despite your low credit score. Plus, by using your credit cards responsibly, you have the opportunity to boost your credit score and qualify for cards with fancier benefits.

Cards | Approval Tips | FAQs

Bonus rewards are good, even if they are modest. These credit cards find a way to give you some kind of bonus, even if you have bad credit.

  • Seeing if you Pre-Qualify is fast, easy, and secure
  • Get 1% cash back rewards on eligible purchase, terms apply
  • Rewards post automatically to your account each month
  • Automatic reviews for credit line increase opportunities
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Pick a card that fits your style. Multiple card designs are available, a fee may apply

N/A

N/A

19.49% to 25.49% Variable

$0 – $99

Poor

The Credit One Bank® Unsecured Platinum Visa® card lets you earn 1% cash back on eligible purchases. Moreover, the card offers three additional bonus rewards.

First, you can earn 1.1% cash back on purchases from certain eligible merchants. Second, you will be automatically evaluated for a higher credit limit if you pay your bill on time for the first five months. Third, you can access the More Cash Back Rewards Program to get discounts and extra benefits from participating merchants.

BAD CREDIT RATING

★★★★

4.3

  • See if you Pre-Qualify in less than 60 seconds—without affecting your credit score. It’s fast, easy, and secure.
  • Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV. Terms apply.
  • This is a fully functional, unsecured credit card—not a debit card, prepaid card, or secured credit card with deposit requirements.
  • Credit One Bank evaluates every account for credit line increase opportunities. We’ll let you know as soon as you’re eligible for a higher credit line.
  • Take advantage of free online access to your Experian credit score and credit report summary so you can track the key factors impacting your credit health. Terms apply.
  • Zero Fraud Liability protects you if your card is ever lost or stolen. Rest easy knowing you won’t be held responsible for unauthorized charges.

N/A

N/A

19.49% to 25.49% Variable

$0 – $99

Poor Credit

You can track your Experian credit score online for free with the Credit One Bank® Visa® with Free Credit Score Tracking. The card pays 1% cash back on eligible purchases and provides $0 fraud liability.

As a bonus, you get 10% more cash back rewards, a rate of 1.1%, for purchases from participating merchants. Credit One will periodically review your creditworthiness to see whether you qualify for credit limit increases.

BAD CREDIT RATING

★★★★

4.0

  • Find out if you Pre-Qualify without harming your credit score
  • Eligible purchases earn 1% cash back rewards automatically, terms apply
  • Get a credit line between $300 and $3,000 based on your credit history
  • Accounts are automatically reviewed for credit line increase opportunities
  • Choose your monthly payment due date for added convenience, terms apply
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges

N/A

N/A

19.49% to 25.49% Variable

$0 – $99

Bad Credit

The Credit One Bank® Unsecured Visa® for Rebuilding Credit pays you 1% cash back on eligible purchases and 1.1% on purchases from selected merchants. It reports your credit activity to the three major credit bureaus monthly, which gives you the opportunity to rebuild your credit.

The card offers credit lines from $300 to $3,000, and you can increase your line by demonstrating creditworthy behavior, such as paying your bills on time.

BAD CREDIT RATING

★★★★

3.9

  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • It’s a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can’t help you build a credit history.
  • Establish your credit line by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
  • Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score

N/A

10.99% for 6 months

24.49% Variable

$0

New/Rebuilding

The Discover it® Secured card provides 2% cash back on up to $1,000 in quarterly purchases at gas stations and restaurants. All other purchases earn 1% cash back.

The bonus with this card is an unlimited Cashback Match on all cash back you earn during the first year after opening the account. As a secured card, you make a refundable deposit to cover your credit limit. Over time, you may graduate to an unsecured card. This card also lets you view your FICO score for free.

BAD CREDIT RATING

★★★★★

4.7

  • Easy application! Get a credit decision in seconds.
  • Build your credit history – Fingerhut reports to all 3 major credit bureaus
  • Use your line of credit to shop thousands of items from great brands like Samsung, KitchenAid, and DeWalt
  • Not an access card

N/A

N/A

See Issuers Website

$0

Poor Credit

Payments you make on your Fingerhut Credit Account earn 10% toward Payment Rewards. Your rewards accumulate unlimited during a three-month period and you receive them at the end of the period.

You can redeem your rewards for new Fingerhut purchases from your credit account. You must redeem the rewards during the next three months or else they will expire. In addition, you’ll receive a free updated FICO score each month.

Bad credit need not prevent you from obtaining a credit card. Here are some tips to improve your chances for approval:

  1. Pick the right card: Certain credit cards, including the ones reviewed here, are specifically geared toward consumers with bad credit. These cards look beyond credit scores to see whether you have enough income to qualify for credit. Typically, these cards have modest credit limits and, unless secured, higher APRs. They may also have higher fees.
  2. Apply for a secured card: A secured card is fairly easy to get because you have to deposit cash into an account that acts as collateral on your card usage. If you ever miss a payment or go beyond your limit, the issuer will take the money from your collateral account and may charge fees, increase your APR, reduce your credit limit, or cancel the account. Many issuers let you replace your secured card with an unsecured one after you exhibit creditworthy behavior for a set period.
  3. Become an authorized user: Friends or family members can add you to their credit cards as an authorized user. You get your own copy of the card which you can use as if you were the card owner. You may be able to improve your credit score. If all payments are timely. The card owner is ultimately responsible for all payments.
  4. Start a credit-builder account: Many credit unions offer credit-builder accounts that allow you to build your credit and make it easier to get a credit card. In a credit-builder account, you take out a collateralized loan by depositing the loan proceeds into a locked account. You then repay the loan in monthly installments. Once repaid, your collateral is released back to you. By repaying on time, your credit score should eventually improve.
  5. Fix mistakes on your credit reports: You can get free credit reports annually and dispute any errors you find. If the credit bureau agrees and removes a derogatory entry on the report, your score should immediately improve.

By taking steps to improve your credit, you can access more generous credit cards and qualify for higher credit limits and/or lower APRs.

Credit card issuers compete for new cardholders in several ways, including signup bonuses. There are a few types:

  • Bonus rewards: This kind of introductory bonus is available to new cardholders who spend a specified amount on purchases during the first few months after opening the account. Bonus amounts vary by card and the credit score required to get the card. You collect the bonus — cash back, miles, or points — after you meet the minimum spending amount required to achieve the bonus.
  • Bonus rates: In this type of bonus, you get a special APR, often 0%, for a set number of months after opening the account. The bonus may apply to purchases, balance transfers, or both. In the case of balance transfers, a fee will apply for each transfer. Your APR reverts to normal after the bonus period ends.
  • Cashback Match: The Discover it® Secured card and other Discover cards are famous for their Cashback Match program. The match is available only to new cardmembers at the end of the first year, when you receive a match of all the cash back you earned during the year.
  • Waived fees: Some cards waive certain fees, such as annual fees, cash advance fees, or monthly maintenance fees, during the first year after opening the account.

Whatever form they take, bonuses sweeten credit card usage after opening a new account. Remember, you must be a new cardholder to obtain introductory bonuses.

Obtaining a credit card is a neutral event — it won’t significantly help or hurt your credit score. What counts is how you use it.

Responsible use of credit is the key to improving your score. Here are five tips:

  1. Pay your bills on time, every time. Failure to do so will only hurt your score. If your payments fall behind by 90 days or more, you will be considered delinquent and may be put into collections. That will make a substantial and long-lasting impact on your credit score. If you pay on time and pay at least the minimum amount due (hopefully, you’ll pay more than that) for several months in a row, you could see your score start to rise.
  2. Control your credit utilization ratio (CUR). This is the amount you owe divided by the amount of credit available to you. Typically, you want to keep your CUR below 30%, but getting down to 20% can help improve your credit score. Consider paying off one or more of your credit cards, perhaps with the help of balance transfers to consolidate your debt.
  3. Keep old accounts, even if dormant. Your credit score improves as your accounts age. Closing accounts can lower the average age, and it also reduces your available credit, which can increase your CUR and hurt your score.
  4. Increase the mix of your credit sources. Instead of opening another credit card account, consider a personal loan or home equity line of credit. A wider range of credit types can help your score.
  5. Refrain from multiple new credit applications within a short period (say, 60 to 90 days). Each application causes a potential creditor to inquire about your credit history. Multiple inquiries in a short period can hurt your score, so spread them out throughout the year.

The most important single thing to do is to check your credit reports from each of the three credit bureaus for errors and correct them. This can immediately improve your score.

A secured card is a great option if you have bad credit, but it is by no means your only one. The cards reviewed here, as well as others we have reviewed, are specifically geared to folks with bad credit.

A secured card requires you sock away cash in a locked bank account to collateralize your credit card. For many, this is unrealistic. If so, you may consider cards such as the Credit One® Bank Unsecured Platinum Visa®. It offers cash back on your purchases and other benefits not always found with credit cards aimed at bad credit consumers.

Store cards like the Fingerhut Credit Account are usually easy to obtain. They have tight credit limits and can be used only at the specified store(s). By using these cards responsibly, you can build your credit scores and may eventually qualify for cards with more benefits.

Minimum Age for Authorized Users by IssuerAs mentioned earlier, becoming an authorized user of another person’s credit card is a quick option to access credit despite a low score. You can use the card as your own up to the credit limit, and ultimately it is the card owner, not you, who is responsible for making payments.

However, you should, by all means, use the card responsibly and within the parameters set by the card owner. The credit scores of both you and the owner ride on creditworthy behavior, which gives you the opportunity to boost your score to the point where you can qualify for your own card.

In any event, it is bad form to do anything that will hurt the card owner’s credit, to say nothing of the toll it will take on your relationship.

You can get a credit card even if your credit is bad. As this review shows, you may even get one that offers bonus rewards.

Although rare, credit card bonuses for bad credit exist and the cards offer significant benefits. Best of all, they can help build your credit, thereby preparing you for cards with higher credit limits and more generous benefits.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bad Credit

Fall 2020 Brings Increased Regulatory Focus on Financial Institution Detection of Human Trafficking | Moore & Van Allen PLLC

Published

on

On October 15, 2020, the Financial Crimes Enforcement Network of the U.S. Department of Treasury (FinCEN) released its Supplemental Advisory on Identifying and Reporting Human Trafficking and Related Activity (Supplemental Advisory). The last time FinCEN provided guidance on identifying trafficking in anti-money laundering (AML) processes was in Guidance on Recognizing Activity that May be Associated with Human Smuggling and Human Trafficking – Financial Red Flags on September 11, 2014. The evolving tactics of human traffickers and behaviors of victims required updated guidance in order for financial institutions to better meet Bank Secrecy Act (BSA) obligations to assist the government in detecting and preventing money laundering. 

The Supplemental Advisory focuses on four emerging tactics used by human traffickers to carry out and hide the proceeds from their illicit operations: front companies, exploitative employment practices, funnel accounts, and alternative payment methods. Front companies are lawful, licensed, and registered businesses which are used by traffickers to comingle the illicit proceeds generated from their scheme of human exploitation with that of a legitimate business. Examples include massage parlors, nail salons, even electrician services, and faith-based mission work. 

Labor trafficking can be harder to detect than sex trafficking for AML departments. FinCEN’s Supplemental Advisory alerts financial institutions to examples of exploitative labor practices, including visa fraud, wage withholding, and recruitment fee advances. Note that in 2019, the Federal Acquisition Regulation: Combating Trafficking in Persons was amended to address prohibited recruitment fees and broadened contractor responsibility for violative recruitment fees in supply chains. 

Funnel accounts continue to be a common tactic wherein a trafficker coerces a victim to open one or more bank accounts in their own name, and then directs them to deposit, transfer, wire, and withdraw monies in amounts below a reporting threshold, for the benefit the trafficker or the enterprise. Because the accounts are often held exclusively in the victims’ names, the trafficker remains anonymous. 

Such account activity may lead to an Unusual Activity Report or Suspicious Activity Report but that would erroneously target the victim, not the perpetrator. Accounts may be closed by the financial institution, or at the direction of the trafficker, following overdraft or low balances, which can cause victims to incur bad credit status and prevent them from accessing financial services in the future. 

The Supplemental Advisory further alerts financial institutions to the prolific use of prepaid cards, virtual currencies, smartphone cash applications, and third-party payment processors to advertise their sex trafficking business and receive payment. 

Although the indicators list addended to the Supplemental Advisory is not significantly different than past iterations, it adds a set of case studies. Specific perpetrator and victim vignettes are effective in modernizing detection tools as they allow financial institutions to keep their pulse on real life examples relayed by law enforcement and survivor advocates. The Supplemental Advisory also reminds financial institutions that they are protected from liability for information sharing afforded under Section 314(b) of the USA Patriot Act. Traffickers often implicate multiple financial institutions and only through a wider lens and open communication can otherwise lawful-appearing activity be identified as suspicious.  

Finally, the Supplemental Advisory notes FinCEN’s Customer Due Diligence Rule, promulgated in 2018, which generally requires some financial institutions to identify beneficial owners of commercial customers. Under the Trafficking Victims Protection Act, “whoever knowingly benefits, financially or by receiving anything of value” may be subject to criminal and civil liability. Therefore, diligence and monitoring processes are to include potential third-party participants in an exploitive scheme.  

FinCEN’s advisory on human trafficking is timely. In the last few months, regulators have signaled increased attention on financial institution responses to human trafficking. This past summer, Deutsche Bank was fined $150M by The New York State Department of Financial Services (“NYDFS”) for compliance failures related to client Jeffrey Epstein, his sex trafficking enterprise and correspondent banks. In the Consent Order, NYDFS found the Deutsche Bank “conducted business in an unsafe and unsound manner [and] failed to maintain an effective and compliant anti-money laundering program.” This September, Westpac Bank was fined $920M USD by the Australian Transaction Reports and Analysis Centre (Australia’s financial intelligence, anti-money laundering and counter-terrorism regulator) for failures in AML reporting, record keeping and detection, including transfers indicative of child sex trafficking. This fine is the largest paid to an Australian regulator for violation of money laundering laws to date. Also in September, the United Kingdom announced that the U.K. Modern Slavery Act of 2015 will be strengthened to (i) allocate more funding to enforce its requirements and (ii) mandate that companies’ modern slavery statements cover certain topics ranging from due diligence to risk assessment. 

Increased regulatory focus on financial institution responses to human trafficking deserves attention.

Source link

Continue Reading

Bad Credit

Can I Negotiate a Bad Credit Auto Loan?

Published

on

Yes, you can negotiate your deal on a bad credit car loan, though you may not have the same leverage as someone with a better credit score. Without the strength of a high credit score behind you, you may not be able to qualify for as low of an interest rate or monthly payment as you’re looking for. But a lot of things associated with an auto loan can be negotiated.

Preparing to Negotiate a Bad Credit Auto Loan

Before you go toe-to-toe with a dealer, make sure you know what kind of power you have in this arena. This means knowing your credit score and what’s on your credit reports. Without this information, you’re powerless to push back against a lender’s assessment of your credit situation.

Auto Credit Express Tip: Remember, you’re most likely going to be interacting with the special finance manager at a dealership, who talks to the lender on your behalf. The dealer isn’t responsible for the rates and terms you qualify for, and the lender can’t determine how much a dealership is willing to cut a deal.

The only way to know you deserve better terms than you’re being offered is to do your research. Find out what the average car loan looks like for people in similar situations. You don’t want to go into a dealer with unrealistic expectations.

  1. First, get your credit score and credit reports. Now is a great time to do this, because the three major credit bureaus – TransUnion, Experian, and Equifax – are offering U.S. consumers free weekly access to their credit reports. This deal only lasts until April 2021; you can request a copy of your reports by visiting www.annualcreditreport.com.
  2. Next, look online for some national averages on auto lending interest rates and see where you fall on the FICO credit scoring model. Knowing where you stand enables you to prepare for the next steps in your car loan: your budget.
  3. The final step to getting ready to negotiate on your auto loan is to plan your car buying budget. If you don’t know what you have to work with, or how to accurately calculate the out-the-door and overall costs of your auto loan, then you won’t have a leg to stand on when talking to a dealership.

What Are You Negotiating For?

Without a plan or a budget to refer to, you can’t have a goal to negotiate for. When it comes to a bad credit car loan, there’s no point in negotiating just because you can.

You should have a set goal in mind, whether it’s a target interest rate, a specific loan term, or a set monthly payment amount. Don’t give these things away to the dealer, though. Keeping your numbers close to the vest is what gives you the power to make a deal on your terms.

In order to get an auto loan deal you can live with, you have to know what you can afford. To find this out, you can do a few simple calculations that the lender does when determining if your budget can handle a car loan. This is your debt to income (DTI) ratio.

Your DTI ratio lets you know how much of your monthly finances are already being used by your existing monthly bills, including an auto loan and car insurance. If you’re using more than 45% to 50% of your monthly income, a lender may not be willing to add to that burden.

To see how much auto loan you could qualify for, and to find out if those monthly payments fit into your budget, you can check out our car loan and monthly payment calculators.

Know What You Can Negotiate

In order to negotiate on your bad credit auto loan, you have to know what you can and can’t change your lender’s mind on. Not everything on a car loan contract is negotiable.

Here’s a look at what you can have a crack at negotiating:

  • Can I Negotiate a Bad Credit Car Loan?Vehicle selling price – The first thing you should know you can negotiate on when it comes to an auto loan is the price of the car. The sticker price on a new vehicle typically lists the MSRP, or manufacturer suggested sale price, and may list a dealership price, too. You can ask for any price you want, but the dealer may not agree to honor it.
  • Your interest rate – Your APR is likely to be a bit higher than you’d like with bad credit, but you can always ask a dealership or lender if what they’re offering is the best rate you qualify for. Often it’s not, there’s no rule that says dealers have to offer you the lowest rate or best deal that you’re qualified for by a lender. With that said, you don’t have to accept a deal that stretches you too thin, either.
  • Your loan term – Shorter loan terms mean higher monthly payments, but stretching your loan too long means a higher overall cost. Being a payment shopper, only looking at the monthly payment and ignoring the overall loan cost, isn’t the place to be with poor credit.
  • Down payment amount – When you have credit challenges, you generally have to meet a down payment requirement set by your lender. However, it may not be set in stone. Depending on your other rates and terms, you may be able to negotiate the amount you need up front.
  • Your trade-in – If you’re using a trade-in to cover some of your down payment amount, you may be able to negotiate what you’re getting out of it. It also helps to know the value of your trade-in before you head to the dealership so you can have more leverage in negotiation.
  • Prepayment penalties – If you have to take on a longer term to get a more favorable monthly payment, you can save money in the long run by paying more on your loan whenever possible. Look over your contract carefully to make sure you aren’t penalized for this, or ask the lender to remove the clause if you are.
  • Optional features and equipment – Some features on the vehicle you’re choosing could be optional, and carry additional fees which can be negotiated on. Things like window tinting, fabric protection, and certain optional packages like wheel protection or cargo nets could be charges coming from the dealer. You don’t have to agree to these. This also goes for extended warranties and GAP insurance coverage.
  • Dealership documentation fees – A “doc fee” on any auto loan contract, which dealers charge for preparing your paperwork and talking to the lender on your behalf, is pretty standard, but the amount varies. There’s no reason to pay through the nose for this, and many states cap the amount you can be charged. Expect a minimum doc fee, but try to lower it as much as possible.

With all these things to haggle over, there are three main things that are non-negotiable when it comes to a car loan (which are set by the state, so there’s no getting around them):

  1. Taxes
  2. Title fees
  3. License fees

Ready to Negotiate Your Next Car Loan?

If you’ve tried negotiating on a bad credit auto loan in the past and were unsuccessful, don’t give up! Just because one dealership isn’t willing to work with you doesn’t mean that others aren’t.

Remember to keep your search for a car loan to a two-week window. If you apply for multiple loans of the same kind with different lenders within that time frame, you stop multiple hard credit inquiries from affecting your credit score.

Additionally, when you have bad credit and need an auto loan, it’s in your best interest to make sure you’re applying with a subprime lender at a special finance dealer. These lenders are able to help people in many tough credit situations, such as bad credit, no credit, and even bankruptcy.

Here at Auto Credit Express, we’ve cultivated a nationwide network of special finance dealerships, and we want to get you matched to one in your area! We’ll get right to work for you after you fill out our fast, free, and zero-obligation car loan request form.

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk/debug.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

Bad Credit

Visitors to local dealership website can get their credit score for free

Published

on

Honda of Victoria provides free credit score and buying power tool online for all users

VICTORIA, Texas (PRWEB) October 24, 2020

Honda of Victoria, a dealership serving Victoria and the entire surrounding area, provides a tool on their website likely to bring a smile to the face of many shoppers: the ability to obtain one’s credit score for free. The TransUnion VantageScore page on the Honda of Victoria website provides credit score, interest rate, terms and borrowing power information instantly to users.

A Social Security Number is not required to utilize the Honda of Victoria system. The dealership assures users that the system is safe and secure. Getting one’s score does not affect one’s credit, and the service is available in English as well as Spanish.

In addition to the free credit score tool, Honda of Victoria allows customers to get pre-approval for financing online. The dealership makes a point of accepting both good and bad credit, and welcomes all first-time buyers. A finance team is on hand to help every customer find the finance package that works best for their own particularly needs.

To apply for credit pre-approval, users need only fill out a form on the site. The form requires users to enter their contact info, employment info and the vehicle that they are interested in.

Those interested in checking their credit score for free are encouraged to go to the Honda of Victoria website at http://www.hondaofvictoria.com. Alternatively, individuals can reach the dealership by phone through dialing 361-575-0495. Finally, those who wear a mask and practice proper social distancing procedures are welcome to visit the dealership location itself at 116 Huvar Street, Victoria.

For the original version on PRWeb visit: https://www.prweb.com/releases/visitors_to_local_dealership_website_can_get_their_credit_score_for_free/prweb17498137.htm

Source link

Continue Reading

Trending