Payday Loans and Fast Cash Guide

Unsecured Credit Cards and Poor Credit

Remember when you got your first Visa Card or Texaco Credit card offer in the mail? For me it was when I was 19 years old, in college, and living off my parents’ money. That was great because I could buy gasoline and pay for it in the next month with my dad’s money that I knew was coming in.

Credit card companies love to take chances on young people, who only see the dollar signs in their eyes but don’t have to worry about exorbitant interest rates in the tiny print. The kids might not even see the bills. “Sure, I’d like a credit card with my mother’s address on the bill. Why not? She knows I’m too busy studying to take time out to pay bills. She’ll take care of it.”

What you hear referred to as “major credit cards” or gasoline credit cards use “unsecured credit” meaning that you have promised to pay but there is no collateral protecting the creditor if you don’t pay. An auto loan is secured with vehicle and your home loan is secured with your real estate, your house. So it stands to reason that the interest rate on a credit card is more than on a mortgage loan, A LOT MORE. This is why unsecured credit cards for people with bad credit can be so risky.

The major credit card companies give out credit pretty easily because they can charge high rates and the American consumer has become so accustomed to having whatever we want. However, hundreds of thousands of Americans have ruined their credit by building up credit card debt. Personal finance consultants – like those at Credit-Doctor.org – continuously tell us to cut up our credit cards and pay them off as quickly as we can. My advice is that even though you won’t have any problem obtaining a pocketful of credit cards, you’ll be glad you didn’t.

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