Related Credit Card Article

"Credit repair credit cards could cause problems"

By admin | July 1st, 2009 | Credit Cards

It has recently been claimed that credit cards that are designed to repair the credit of users could actually end up causing more problems for the cardholders.

These credit cards, often issues by lenders such as Vanquis and Capital One, are often taken out by consumers that have had their credit damaged and want to attempt to repair it again.

However, the interest rates on the cards can be extremely steep, and those that do not repay the balance quickly could find themselves sinking deeper and deeper into debt, which could ultimately make their problem even worse.

A recent report has claimed that in many cases borrowers turn to these cards in desperation because they have no alternative when it comes to getting credit because of their past credit history and low credit score. However, whilst many may be hoping to repair their credit rating through the use of these cards some end up in a worse financial mess than they were in before they took out the credit card.

More and more people are finding themselves in a situation where they are only able to get these credit cards, particularly since the recession set in.

Although the credit limits offered on these credit cards are relatively low, the type of situation that borrowers are in when they take out these high interest cards means that they are more likely to struggle to repay the balance quickly, and are hit with interest and late charges.

One industry officials suggested that borrowers look at other options, and that they remember that there are things that they can do if their financial situation has taken a turn for the worse due to something out of their control.

She said: ‘Also, don’t forget you can put a note on your credit file to explain your circumstances. It may be the case that you’ve had an excellent credit record in the past, but due to redundancy you’ve fallen into difficulties. As a result, the lender may look more favourably on any application.’

Tags: bad credit credit cards, credit repair credit cards

Related Articles:

• The High Risk of Using Credit Repair Cards

  Many people do not realize that they have damaged credit until they have been turned down for loans and other credit as a result of a low score. Others who have not paid much attention to being diligent in making their payments in the past are now realizing the benefit of having a good credit...

• Millions see their credit card limits cut

  According to a recent report millions of people in the UK have seen their credit card limits cut as a result of credit card companies doing their best claw back money in the current financial climate. It is claimed that over the past six months millions of credit cardholders have seen their credit limits cut...

• Rising costs for credit card users

  According to a recent report credit card users in the UK have seen costs rising for the past two years, namely since the Office of Fair Trading placed a ceiling limit on penalty charges that credit card firms could charge for late or missed repayments and for exceeding the credit limit on the card. Credit...

• Culled credit card limit could cause problems

  Credit card firms have found themselves at the centre of controversy for a number of reasons over recent weeks. The Internet lending giant, Egg, came under fire after it decided to cancel the credit card facilities of 161,000 customers, despite the fact that many of them appeared to have good credit and claimed to have...

• Credit card firms adjusting credit limits for different age groups

  There have been a number of recent reports that have highlighted the various tactics that credit card firms have been using of late to try and maximise their profits whilst reducing their risks, such as cutting the credit limits of some customers, withdrawing credit card facilities altogether, or raising interest rates and fees for no...

Other Recent Articles

Cash back credit cards set to become increasingly rare

The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their...

By admin | March 9, 2010 | Read More

Capital One customers hit by huge increases on credit cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases...

By admin | March 5, 2010 | Read More

New high for credit card interest rates

Recently released figures have shown that credit card interest rates in the UK have reached a new high, despite the...

By admin | March 3, 2010 | Read More

Credit card firms reject many proposals

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the...

By admin | March 1, 2010 | Read More

Credit cards could be the ideal solution for holidaymakers

It has been suggested in a recent report that holidaymakers and those that travel abroad for any other reason could...

By admin | February 25, 2010 | Read More