How do I know if these credit card companies are reputable?

Question

Within the past couple of months, I've been receiving several letters per week from credit card companies enticing me to apply. I have bad credit, got rid of all my credit cards eight years ago, and am still paying off old debt. Could these letters have something to do with the fact I bought a new car last fall? Should I apply for a card to build my credit back up? How would I know what company to go with?

Answer 1

Not sure who's sending you letters, but you can find a complete list of REPUTABLE credit card issuers for bad credit here:

http://www.wowcreditcards.com/bad-credit.htm

Yes, if used wisely-- these types of offers can help build up your credit and improve your credit score. Just make sure you make regular, on-time payments!

Good luck!

Answer 2

It sounds like you have a charging problem. So I would say NO do not apply for a new credit card. Plus you are still paying off old debts. What's going to happen when you start charging again and then you have new and old debt to pay.

Needless to say you should keep doing what you're doing... get yourself out of the hole before you do anything else.

You said you bought a new car which is a step. Having a car payment every month (if you have one) and not getting behind on it is going to build your credit for a start. You don't need to start adding more debt already if you are just getting out of it.

My suggestion is maybe having a debit card. Use it only when you have to and it's going to come directly out of your account. Without over withdraws etc you should be fine.

All these credit cards want you to get new ones because you are starting to get to end of your old debt. They want new interest and more money now... So stay away until you are completely financially secure.

Answer 3

No-name banks tend to have less competative interst rates than big named companies. They're big-named for a reason, they're competative in the industry to get your business. The little guys aren't on their feet yet so they can't afford to be as competative. You are right, they probably got your name from the car purchase.

I suggest: It sounds like credit cards are a bit of a weakness for you. I would reccomend only 1 credit card for you, set aside for emergencies, and with a leading bank since they probably would get you the best interest rate.

If you want to build your credit, I HIGHLY reccomend personal loans of small amounts. They're just as effective for building credit, usualy have about the same interest rates as credit cards but once you pay it, you're done. You won't keep building yourself into debt like you do with credit cards.

Answer 4

many credit card companies operating online and offline for that matter, announce they can offter the best credit card online, even with instant approval if you apply for it on their website. Some people think that this means they can instantly download a copy of a card like waving a magic stick and start to purchase with it immideately. Let's sort out some confusion here. Many credit card websites can approve your application instantly, which in most cases means within a few minutes. But that doesn't mean you can print out your card and run to your local Wal-Mart or Target or wherever and immedeately shop. Of course you can shop, but not with your newly approved card, because you have not received it yet.
http://www.lowest-apr-cards.com/index.html contain so many good credit card companies. you can choose a best one according to you.

Answer 5

You can check companies out through the BBB - but I recommend going with a well known company - just be sure to read the fine print and don't with a card that charges you any kind of start up fees or annual fees.

Answer 6

For the best answers, search on this site https://shorturl.im/axO60

I would first try a non profit consumer credit counseling company...It is a much better option and it does not screw up your credit as badly...