The loan Is Not The Nightmare Even for the Bad Creditors


Poor credit store cardsA very drastic and highly obstacle circumstances created/existed in front of the people who all are suffering from getting the loan through the financial institution/banks, if the person is coupled with a low and bad credit ratings. The situation becomes the nightmare owing to rejection of loans/credits by the financial institutions The circumstances for people having bad credit situations can only be exist if the person is default in the repayment of the loans/credits or the banks and financial institutions ensures about the bad investment in their next investment schemes. The CIBIL- Credit Information Bureau Limited, is the rating agency of the borrowers who all are met with bad credits. The raring parameter is between 300-900. The more in rating the more chances in getting the loans. Before five years back the chances for higher rating borrower is more as compare to the lower one, but now in current period every borrower are eligible for loans against their bad or low credit rating.

Condition of people having bad credit rating

  • If the person who already borrowed a credit earlier and one defaults in the repayment of it at any definite or required
  • If the person has already applied for the loan but unfortunately the borrower is rejected repeatedly by the banks and other financial institution.
  • The borrower has not taken the loan earlier i.e one has a clear loan history. The person do not taken the loan in the past.

How to get the loan with bad credit?

In the arena of advancement of technology, financial and monetary ascend and mushrooming of loan creditors/ institution, one will not face the conditions of not to avail the loan. Some peer to peer lending are providing the secure platform for the borrower’s even if one’s CIBIL score rating is low. The borrower can have the solid an genuine chance of receiving the credit. This approach definitely ensures about the individual who all are protagonists with less credits rating as per the CIBIL scores. The peer to peer lending platforms are in vogue in patronage the people with the further loans and concerned platform contains under it the following agencies like Lendbox, etc. With basic document works, the peer to peer platforms are availing the specific opportunities for all the borrower’s. The loans with ease available to the borrower’s in alluring interest rates and no repayment penalities. One CNN easily pay off their credit card loans, medical and other loans etc. Such platforms are benediction for the borrowers who wants to enhance the further loans.

Get to know the things you need to consider while choosing an online lender

Number of online lenders has been increased in the recent days therefore the individuals are able to get loans easily as they desire. Instead of wasting their time in banks and other financial institutions they can simply prefer any of the online lenders and apply for the loan. The major highlight about the online lenders is they do not make any troubles that banks and other private lenders make while individuals approaching them for loan. This is one of the main reasons why most of the people have started to prefer online lenders for their purpose.

Poor credit store cardsHowever, people will face challenge when they are about to choose an online lender because there are many lenders in online therefore finding the best among them will really be difficult. If you are not able to find such lender then you will have to use the online resources which are mainly available to help people in this case. There are many online websites having the complete information about the online lenders therefore the individuals can simply approach any of them for your purpose and get to know about the lenders easily.

It is always very important to prefer the best lenders and in order to do that you must get to know about the lenders. This is the most significant that every individual must do when they are about to choose an online lender. But most of the people are doing this and hence they are supposed to deal with many issues. In fact some of the sites will allow people to compare the details of the bad credit loans lenders therefore the individuals can obtain the details and compare them in order to find the best among them.

Generally every lender will be offering the loan at different interest rate therefore the individuals must explore those details and find which one is offering the suitable loan as people expect. If they are not checking these details then they may have to return more money with interest. Hence it is recommended to the people to compare the interest rates and choose the right one as they desire. Once they choose the lender they can apply for the bad credit loans. On top of all these things, the individuals must go through the terms and conditions of the lender without fail.

Some of the lenders may have some complicated terms and conditions and if the individuals did not get to know about those things, then it will become a problem for them. The lender may ask more money in the time of repayment and if the individuals are not ready to pay that then they will show the terms and conditions and ask the money. Many individuals have fallen in the trap of such lenders therefore people should always be very conscious in this case and they have to read all the terms and conditions in order to keep them away from the unwanted inconveniences. These are the major factors that every person has to check and ensure while applying for loan in online.

What are the benefits of cash loans

In a modern world most of the people are heard about cash loans in television, internet and in the mail. Basically, they are referring cash loan as

Poor credit store cards

  • Deferred deposit loans
  • Post dated check loans
  • Cash advance loans
  • Payday loans
  • Check advance loans

But the Nation’s of Consumer protection and the Federal Trade Commission say that cash loans are short term, small and high rate loans. Most of the lenders provide this loan to the borrower with the lowest interest rate. So if you are meeting the tough financial situation then you can use the cash loans and it is really helpful to your tight finance situation.

How cash loans are working

When it comes to the working functions of cash loans then borrowers have to write the personal allocated check to the lender. In a check, borrowers have to mention their desired amount that they are looking to get it from the lender. After that lender is providing money to the borrower so instantly, borrower can get the money. As everyone knows there are two kinds of such loans are available as secured and unsecured loans. Basically secured loans are provided by the banks or financial institutions and the borrower has to submit collateral documents for security purpose. But if you are planning to get unsecured loans then borrowers no need to give collateral. This kind of loans is available in worldwide and most of the lender also provides this loan. Borrower can get the application form in online and it is ask personal information and bank information about borrower. At the same time they have to settle the borrowed amount in next payday or else you might have to pay a penalty amount.

Amazing pros of cash loans

In a modern world most of the people are looking for emergency loan to handle their financial problems. If you are also looking for the instant solution for your toughest financial problems, then cash loans is the best choice. It is also provides plenty of advantages to the borrower such as

  • Easy to qualify
  • Information security
  • Secure
  • Fast
  • Borrower can use cash loans for any purpose
  • Legislation

So above are the advantages of the cash loans and it is really helpful to the borrower. When compared to the other loans, it is the most convenient and effective way to get a loan. Most of the lenders also provide this loan without interest. If you are searching in online then you can get plenty types of lender. But based on your requirements, you can choose the lender. When choosing the lender you have to consider about whether the lender is authorized lender or not and carefully read the terms and conditions of lender document. If you are looking to choose best lender then you can select the lender nearby your location. So you can directly visit the lender’s office and know about their rules and regulations. Choose the best lender based on your money requirements and your financial situation.

Demerits of the Discover itĀ®- 18 Month Balance Transfer Offer

The doubled cash back in the first year makes this card difficult to top. I will gladly go for this card because I really want to reduce my fuel spending; I will advise that one pairs this with the Chase Freedom Ā® so one can have two quarters per year earning higher rewards on gas.


Blue Cash PreferredĀ® Card from American Express

Merits of the Blue Cash PreferredĀ® Card from American Express

  • The offer an unlimited 3% back on gas station purchases all year round.
  • Unlike Chase freedom and Discover it, bonuses are automated, keeping tract is not necessary.
  • They give 6% cash back at grocery stores on up to $6,000 in spending per 12 months. That’s a whopping $500 per month in spending.

Demerits of the Blue Cash PreferredĀ® Card from American Express

  • Blue Cash EverydayĀ® Card from American Express offers an annual fee of $0 but have lower rewards $2 at gas stations larger families will settle to earn only 1% as there’s a possibility of spending cap on grocery rewards.
  • Not internationally accepted because American Express isn’t as widely accepted as Visa or MasterCard.

If I find myself in the categories of people that spend a lot on gas, this card’s rewards structure is unusually generous for me. I especially like that it’s unlimited, so even if I’m a salesperson with a multi-state territory or if I’m dating someone in the next time zone, I’ll be able to fill my tank all year long without getting bumped down to a lower rewards rate.

If I drive a lot, the annual fee may be worth it. If not, consider the Blue Cash EverydayĀ® Card from American Express or one of the bonus category cards instead.


Merits of the PenFed Platinum Rewards Visa SignatureĀ® Card

  • Annual fee is $0.
  • PenFed points are valued at a 1 cent each, so earning 5 points per dollar on gas purchases effectively means earning 5% back on gas.
  • Spend without limit on gas at the 5 points per dollar rewards rate.

Demerits of the PenFed Platinum Rewards Visa SignatureĀ® Card

  • You must have excellent credit to qualify for this card.
  • Can’t sign up without being a member of PenFed Credit Union. You can become a member by:
    • Be a member of the United States military
    • Be an employee of the United States government or other qualifying organization
    • Be an employee of or belong to a qualifying organization or association
    • Live or work at an eligible location
    • Be a relative or housemate to someone who is eligible
    • Make a one-time donation to Voices for America’s Troops ($14) or the National Military Family Association ($15).
  • PenFed points expire after 5 years, and redemption options are somewhat limited.
  • PenFed made it clear that the higher rewards rate is for gas purchases made at the pump, so gas station convenience store purchases are excluded.

Earning 5% back on gas all year, with no limit, is pretty appealing. That’s why the PenFed Platinum Rewards Visa SignatureĀ® Card makes this list, in spite of the inconvenience of joining the credit union and the fact that applicants without excellent credit may be turned away.

I will definitely consider this card if I drive a lot and don’t mind the hassle of redeeming for gift cards instead of cash, this card will put the highest rewards back in my pocket after I fill my tank.

Poor credit store cards

Easy Store Credit Cards you can get Approved for

So What are the “Easy Store Credit Cards you can get Approved for”?

As for store credit cards their are easy cards you can get approved for and not so easy to get store cards. Most cards that are more easy to get approved for follow the same rules as major credit cards.

So you want to know how to find out and what to look for when learning about the best store card for you to get approved for?

For example, the standard American Express cards are harder to get approved for as are a store card that is affiliated with Amex. When applying for a store credit card do some research and find out what card company it is affiliated with.

An important tip would be to simply look at the store credit card image logo on the card. It most often will show who the card is affiliated with. Now if the store card does not show its face too easily then you might have to read the disclosure. Look for the banks that issue a credit card on behalf of the store you are interested in applying for. Then do a search on the bank, see if the individual bank is a type of bank that is hard to get approved for. Look for user posts and messages that will give you any clues. Typically you would like to look for subprime banks like Fifth Third or Capital One bank and Santander that are more well known for easier approval thresholds.

Learn about a store return policy for a particular department store. See what the rules are when you would like to return an item. Find out where to mail your returning items you have purchased and contact customer service to check on your return. See all store return policies in the store directory at

Easy store credit cards you can get approved for.

So here we put together what we feel are the best and easiest store credit cards that can greater your chances to be approved and start enjoying your card.

Your JCPenney Credit Card offers customers best rewards such as earning rewards for every penny spent. Special birthday gifts. Special bonus points. Sales events and offers exclusively to cardmembers.

  • Walmart

    The Walmart credit card offers many card benefits. No annual fee. When using your card you save five cents per gallon at Walmart gas stations.

  • Kohls

    With your Kohls Card you can maximize your savings. Combine discounts with sale prices and offers.

    Your Sears Credit Card can be used at Sears, Kmart and Land’s End in-stores and online. You will receive monthly savings, valuable coupons and more.

  • Disney

    Use your disney credit card on everyday purchases and redeem points toward most everything Disney.

  • Target

    Charge at Target stores or at and save 5% on all purchases. No annual fee.

  • American Eagle

    Get 15% off the month of your birthday with an American Eagle credit card. Member only sales and events. Don’t miss it.

  • Apple Store

    Purchase an Apple Gift Card for any occasion. Depending on which Apple Gift Card you choose to give, they can be used for Apple products, accessories, music, movies, games, apps, and more.

  • Bloomingdale’s

    Earn 6 points per dollar in cosmetics and fragrances when you shop with your Bloomingdale’s card.

  • Victoria’s Secret

    Become an Angel and start enjoying card benefits. Earn $10 rewards for every 250 points earned. Exclusive savings for Victoria’s Secret card members.

  • Store Credit Cards and Department Store Cards

    Store Credit Cards and Department Store Cards

    Poor credit store cards

    Apply for a store credit card. Good credit, bad credit or no credit. If you like to shop, apply for a store credit card. It is easy to apply for any store card. Just click on your favorite store and apply online. Most store credit cards have a low apr and no annual fees.

    If you have no credit or bad credit and are having a difficult time getting approved, you should apply for secured credit cards.

    Having good credit will benefit you in the future. Paying your bills on time and having a high credit score is crucial in maintaining good credit. Establishing credit should begin when you are young. Apply for credit cards and get a line of credit and keep in good standings. This will help you in the future.

    Store Credit Cards are easy to apply for. There are many stores to choose from including Macys, Sears, JCPenny, Boscovs, Lord and Taylor, Nordstrom, Neiman Marcus and more.

    When applying for credit cards try to find credit cards with no annual fees and low interest rates. Explore all credit card offers and find the right one for you.

    Poor credit store cards

    Your JCPenney Credit Card offers customers best rewards such as earning rewards for every penny spent. Special birthday gifts. Special bonus points. Sales events and offers exclusively to cardmembers.

  • Walmart

    The Walmart credit card offers many card benefits. No annual fee. When using your card you save five cents per gallon at Walmart gas stations.

  • Kohls

    With your Kohls Card you can maximize your savings. Combine discounts with sale prices and offers.

    Your Sears Credit Card can be used ast Sears, Kmart and Land’s End in-stores and online. You will receive monthly savings, valuable coupons and more.

  • Disney

    Use your disney credit card on everyday purchases and redeem points toward most everything Disney.

  • Target

    Charge at Target stores or at and save 5% on all purchases. No annual fee.

  • American Eagle

    Get 15% off the month of your birthday with an American Eagle credit card. Member only sales and events. Don’t miss it.

  • Apple Store

    Purchase an Apple Gift Card for any occasion. Depending on which Apple Gift Card you choose to give, they can be used for Apple products, accessories, music, movies, games, apps, and more.

  • Bloomingdale’s

    Earn 6 points per dollar in cosmetics and fragrances when you shop with your Bloomingdale’s card.

  • Victoria’s Secret

    Become an Angel and start enjoying card benefits. Earn $10 rewards for every 250 points earned. Exclusive savings for Victoria’s Secret cardmembers.

  • How do I apply for a credit card?

    A little planning can go a long way to make sure that you don’t only apply for a credit card, but also get approved for it. Applying for too many credit cards simultaneously is going to get adversely reflected on your credit score and that is the reason why this may not be the best way to go about it. When you apply, make sure that you plan it in a way so that your APR is low and the terms are suitable for you. There are some factors that you cannot change, for example, if you filed for bankruptcy or have many missed payments in your credit history. Here are tips that will help you apply for a credit card with a high chance of getting approved.


    If you shop a lot at a favorite departmental store, then getting a store credit card might seem like a good decision. May be it is and maybe it is not. It depends on how you see it. However, to start out, we bring to you some of the credit card rewards programs that are being offered at the moment by popular stores in the United States.

    Popular Store Credit Cards

    • American Eagle Visa: With 4% in-store rewards and perks that include a 10% off birthday coupon and 15% off on your first purchase, this is as good as they come. The base reward rate is 1%.
    • Apple: The Apple card fetches you 2% in in-store rewards. You get 10% off on your 2 nd purchase at the store.
    • Best Buy Reward Zone MasterCard: Enjoy 4% in-store rewards and after you make your first purchase, you will get a $25 gift coupon to use at the store.
    • Bloomingdales AmEx: This card gives you 1.5% in in-store purchases and double points on fragrances and perfumes. When you buy 5 shoes from here, you get the 6 th one at 25% off.

    Getting a store credit card just for the sake heck of it is not a good idea. You can see why that is so. The main problem with specific store cards is that you enjoy benefits only when you shop at the particular store. And if you are like most people, you don’t shop at only one store. There are some great credit cards out there and if you research well, you will be able to find something that gives you awesome benefits when you go shopping!

    For those who want to save on purchases made at their best retailers, store cards a boon for them. But all the time store cards might not always bring the best perks with them. Some of them are specifically tied up to particular retail shops while there are many that gets the card holders lucrative rewards programs. The safe deal is therefore to go with such cards. 2015 has some of the best store credit cards on offer available to those with credit ranging from average to excellent. Store credit cards not only helps in getting initial bonuses but also offer surprises like a 0% intro term or a discount on the first very purchase.

    Some of the worth considering best store credit cards rewards programs of this year are:

    Discover it– This store credit card offers 5% cash back on rotating charges and other discounts that comes through the Discover Deals. There is a 14 months 0% purchase and balance transfer APR. There is also a 5% cash back on all the rotating bonus categories. There is no annual fee and foreign transaction fee.

    Blue Cash from American Express ā€“ Is a favorite for many typically because of the generous rewards it earns the credit holder. An unlimited 2% rewards across all department stores is hard to resist that this store credit card earns. The card offers 6% back on groceries, 3% at gas stations and department stores.

    Chase Freedom– Compared to others in the list, this store credit card is everyone’s first choice. There are a lot of bonus to avail throughout the entire years. For example, the first quarter earns bonus at Starbucks, grocery stores and movie theaters. The second quarter at restaurants, the third quarter at gas stations and the last quarter at Outside these categories, the card holders earn 1% back.

    WalmartĀ® Business Store Card- With a variable APR of 14.8%, one gets to enjoy low Walmart prices.

    TJX Store Card– With a variable APR of 26.99%, the card holder gets to enjoy special shopping hours.

    Stage Stores Credit Card– Earn a $10 Payback Reward for every $250 spend. Plus, there is a variable APR of 24.99%. Store Card ā€“ This store card earns 0% for 6 to 24 months and a variable APR of 25.99% after that. The credit card earns 6 months financing on any purchase made that totals up to $149 or more. The card holder gets 12 month financing on a purchase totaling to $599 or more.

    Sony Store Card ā€“ The Sony Store Card has APR of 0% for 6-36 months with a variable APR of 29.99% onwards. There is a special financing available on purchases of $199 or more. Valid throughout June, there is a 12 months special financing that is valid on purchases of $499 or more.

    Carson’s Credit Card– Earn a $20 Rewards Card after spending $200. The $20 Rewards Card can be used for any purchase that is above $50 or more. Plus. There is no APR.

    American Eagle Outfitters Store Card– This store credit card is simple. There is no annual fee and the variable APR that is to be paid is 24.99%.

    Lowe’s Store Card– Earn 6 months special financing on a $299 minimum purchase. Plus, the APR is 0% for 6 months and a variable APR of 24.99% after that.

    WalmartĀ® Store Card ā€“ Card holders can get 0% APR for 6 to 24 months and a variable APR of 22.9% after that. No interest would be levied promotional purchase if the card holder pays in full within 6 months of any purchase ranging between $150 to $2&8.99; 12 months on a purchase of $2&9-$428.99; 18 months on purchase of $429- $598.99 or 24 months on purchasing totaling over $599 and more. This offer is valid in-store only throughout the month of August, 2015.

    The Only Reason to Open a Store Credit Card

    Monday, May 5, 2014

    The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

    Poor credit store cards

    Erin Lowry serves as the Content Director for MagnifyMoney.

    Poor credit store cards

    “And would you like to open a [insert store] card today to receive an extra 10% off your purchase?”

    We’ve all heard this upsell strategy. Store credit cards seem to be available at just about any place you exchange currency for goods ā€“ except for maybe Seven-11.

    For years I firmly shook my head and said, “thanks, I’m all set for today” without ever considering the possible advantages of opening a store card.

    Then Banana Republic got me thinking about using a store card to increase my credit limit thus driving down my utilization to improve my credit score.

    Why I got a store credit card: to improve my score

    The moderately-expensive store was offering 40% off most of the store which could be coupled with any discount already bestowed upon sales rack items. While trying on clothes, I overheard the dressing room attendant mention if you opened up a Banana Republic credit card, you’d receive 30% off a full-priced item and an additional 10% off everything else.

    Like most shoppers, I looked down at the massive stack of clothing I had my eye on I started to do the math. All those discounts could net me over $600 worth of clothing (at it’s original price) for $120. While weeding through the dresses, blouses and pants I started to do another math equation.

    If I opened a store card, I would be increasing my overall credit limit. I could use the card for one purchase a month – or none – thus lowering my utilization. A utilization rate below 30% helps prove you aren’t a risky borrower and can increase your credit score. So, if my overall credit limit went from $5,000 to $8,000, and I continued to only spend about $1,200 on my cards each month, I could lower my utilization from about 25% to about 15%. Plus, establishing and using another line of credit responsibly would help improve my overall score.

    The opportunity to improve my score, and maybe a little bit of the discount, convinced me to open up a store card — which now sits my hypothetical freezer.

    The application process was painless and required I give certain personal information, like my address and social security number, to the cashier. Within a minute I’d been approved. Store cards are ideal for people trying to build their credit from scratch or anyone rebuilding a botched score.

    Low scores get approved for store cards

    You don’t need to be part of the 700-prime-score-club to get approval for store credit cards. In fact, banks approve much lower scores for store card than they would normally allow if you just walked into a local branch or applied directly for a bank credit card online.

    The reason being, banks promise retailers a certain approval rate (perhaps people with a score of 550 or higher), which then requires the banks to approve customers they’d normally consider risky.

    Opening a store card is an ideal way for someone with a lower credit score to begin rebuilding his or her credit.

    Getting approval for the credit card increases a person’s credit limit thus driving down their utilization ratio as well as diversifying their types of credit. But it only helps if you use the card wisely ā€“ perhaps by simply tucking it away. If you do plan on using the card for affordable purchases, it can still be used at any store ā€“ not just the one with the logo on the front.

    Just beware: when you apply for a store credit card, there will be an inquiry on your credit report. If you want to see where you have a good chance of getting approved for a credit card but do not want to hurt your credit score, consider using a tool from (you can visit the tool on their website by clicking this link). With this tool, a soft pull that doesn’t hurt your score is pulled and you get to find cards where you have higher approval odds. This might be a good stop before a store card.

    Be careful about making purchases on a store card

    Just because you have the card doesn’t mean you should be swiping it. Stores (and banks) will entice you to spend on their card by giving all sorts of promotional offers like sales, special discounts or reward points.

    Don’t fall for these traps. Seriously. Seeing those promotional offers should set off alarm bells in your head ā€“ kind of like when you’re watching a horror movie and want to scream at that stupid character walking into a creepy, dark house.

    Store cards have high rates, so if you get caught in a debt cycle it will not only hurt your credit score and history but also attack your wallet. Only use a store card if you’re able to pay a purchase off in full each month.

    How you know your credit score is increasing

    Not many people send snail mail these days, but banks still love direct mail. Once you start having a mailbox stuffed with credit card offers, you’ve been tapped into the “credit-worthy” group. The first round of mailers might be from sketchy-sounding companies, but it just means you’re on the rise.

    Once your score hits a pleasing 680, you’ll be bombarded by offers from well-known credit card companies.

    Know yourself and your limitations

    Store cards are a simple way to increase a low credit score, but be honest with yourself before signing up. If you tend to easily succumb to sales, discount deals, and promotional offers then perhaps this will end up putting you in debt instead of improving your credit score.

    Would you consider opening up a store card to help your credit score?

    Poor credit store cards

    Erin Lowry is a writer at MagnifyMoney. You can email Erin at [email protected]

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    Advertiser Disclosure: MagnifyMoney is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site. This compensation from our advertising partners may impact how and where products appear on the site (including for example, the order in which they appear). To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

    Average Credit Score in America Reaches New Peak at 700

    Thursday, August 17, 2017

    The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

    Poor credit store cards

    is a freelance writer and quantitative marketing consultant. Hannah founded the site Unplanned Finance.

    In late 2016, American consumers hit an important milestone. For the first time in a decade, over half of American consumers (51%) recorded prime credit scores. On the other side of the scale, less than a third of consumers (32%) suffered from subprime scores. 1 As a nation, our average FICOĀ® Score rose to its highest point ever, 700. 2

    Despite the rosy national picture, we see regional and age-based disparities. A minority of Southerners still rank below prime credit. In contrast, credit scores in the upper Midwest rank well above the national average. Younger consumers struggle with their credit, but boomers and the Silent Generation secured scores well above the national average.

    In a new report on credit scores in America, MagnifyMoney analyzed trends in credit scores. The trends offer insight into how Americans fare with their credit health.

    1. National average FICOĀ® Scores are up 14 points since October 2009. 3
    2. 51% of consumers have prime credit scores, up from 48.1% in 2007. 4
    3. One-third of customers have at least one severely delinquent (90+ days past due) account on their credit report. 5
    4. Average VantageScoresĀ® in the Deep South are 21 points lower than the national average (652 vs. 673). 6
    5. Millennials’ average VantageScoreĀ® (634) underperformed the national average by 39 points. Only Gen Z has a lower average score (631). 7

    Average FICOĀ® Score: 700 8

    Average VantageScoreĀ®: 673 9

    Percent with prime credit score (Equifax Risk Score >720): 51% 10

    Percent with subprime credit score (Equifax Risk Score <660): 32% 11

    Percent with at least one delinquency: 32% 12

    Average number of late payments per month: .35 13

    Average credit utilization ratio: 30% 14

    Percent severely delinquent debt: 3.37% 15

    Percent severely delinquent debt excluding mortgages: 6.9% 16

    States with the best and worst credit scores

    Poor credit store cards

    Credit scoring companies analyze consumer credit reports. They glean data from the reports and create algorithms that determine consumer borrowing risk. A credit score is a number that represents the risk profile of a borrower. Credit scores influence a bank’s decisions to lend money to consumers. People with high credit scores will find the most attractive borrowing rates because that signals to lenders that they are less risky. Those with low credit scores will struggle to find credit at all.

    Banks have hundreds of proprietary credit scoring algorithms. In this article, we analyzed trends on three of the most famous credit scoring algorithms:

    • FICOĀ® Score 8 (used for underwriting mortgages)
    • VantageScoreĀ® 3.0 (widely available to consumers)
    • Equifax Consumer Risk Credit Score (used by the Federal Reserve Bank of New York)

    Each of these credit scores ranks risk on a scale of 300-850. In all three models, prime credit is any score above 720. Subprime credit is any score below 660. All three models consider similar data when they create credit risk profiles. The most common factors include:

    • Payment history
    • Revolving debt levels (or revolving debt utilization ratios)
    • Length of credit history
    • Number of recent credit inquires
    • Variety of credit (installment and revolving)

    However, each model weights the information differently. This means that a FICOĀ® Score cannot be compared directly to a VantageScoreĀ® or an Equifax Risk Score. For example, a VantageScoreĀ® does not count paid items in collections against you. However, a FICOĀ® Score counts all collections items against you, even if you’ve paid them. Additionally, the VantageScoreĀ® counts outstanding debt against you, but the FICOĀ® Score only considers how much credit card debt you have relative to your available credit.

    Average FICOĀ® Scores in America are on the rise for the eighth straight year. The average credit score in America is now 700.

    Poor credit store cards

    On top of that, consumers with “super prime” credit (FICOĀ® Scores above 800) outnumber consumers with deep subprime credit (FICOĀ® Scores below 600).

    Poor credit store cards

    We’re also seeing healthy increases in prime credit scores, defined as Equifax Risk Scores above 720. According to the Federal Reserve Bank of New York, 51% of all Americans have prime credit scores as measured by the Equifax Risk Score. Following the housing market crash in 2010, just 48.4% of Americans had prime credit scores. 20

    Poor credit store cards

    A major driver of increased scores is the decreased proportion of consumers with collection items on their credit report. A credit item that falls into collections will stay on a person’s credit report for seven years. People caught in the latter end of the real estate foreclosure crisis of 2006-2011 may still have a collections item on their report today.

    In the first quarter of 2013, 14.64% of all consumers had at least one item in collections. Today, just 12.61% of consumers have collections items on their credit report. Overall collections rates are approaching 2005-2006 average rates. 40

    Poor credit store cards

    Credit scores and loan originations

    Following the 2007-2008 implosion of the housing market, banks saw mortgage borrowers defaulting at higher rates than ever before. In addition to higher mortgage default rates, the market downturn led to higher default rates across all types of consumer loans. To maintain profitability banks began tightening lending practices. More stringent lending standards made it tough for anyone with poor credit to get a loan at a reasonable rate. Although banks have loosened lending somewhat in the last two years, people with subprime credit will continue to struggle to get loans. In June 2017, banks rejected 81.4% of all credit applications from people with Equifax Risk Scores below 680. By contrast, banks rejected 9.11% of credit applications from those with credit scores above 760. 22

    Poor credit store cards

    Credit scores and mortgage origination

    Before 2008, the median homebuyer had an Equifax Risk Score of 720. In 2017, the median score was 764, a full 44 points higher than the pre-bubble scores. The bottom 10th of buyers had a score of 657, a massive 65 point growth over the pre-recession average. 23

    Poor credit store cards

    Some below prime borrowers still get mortgages. But banks no longer underwrite mortgages for deep subprime borrowers. More stringent lending standards have resulted in near all-time lows in mortgage foreclosures.

    Poor credit store cards

    Credit scores and auto loan origination

    The subprime lending bubble didn’t directly influence the auto loan market, but banks increased their lending standards for auto loans, too. Before 2008, the median credit score for people originating auto loans was 682. By the first quarter of 2017, the median score for auto borrowers was 706. 26

    Poor credit store cards

    In the case of auto loans, the lower median risk profile hasn’t paid off for banks. In the first quarter of 2017, $8.27 billion dollars of auto loans fell into severely delinquent status. New auto delinquencies are now as bad as they were in 2008. 28

    Poor credit store cards

    Consumers looking for new auto loans should expect more stringent lending standards in coming months. This means it’s more important than ever for Americans to grow their credit score.

    Unlike other types of credit, even people with deep subprime credit scores usually qualify to open a secured credit card. However, credit card use among people with poor credit scores is still near an all-time low. In the last decade, credit card use among deep subprime borrowers fell 16.7%. Today, just over 50% of deep subprime borrowers have credit card accounts. 30

    Poor credit store cards

    The dramatic decline came between 2009 and 2011. During this period, half or more of all credit card account closures came from borrowers with below prime credit scores. More than one-third of all closures came from deep subprime consumers.

    Poor credit store cards

    However, banks are showing an increased willingness to allow customers with poor credit to open credit card accounts. In 2015, more than 60% of all new credit card accounts went to borrowers with subprime credit, and 25% of all the accounts went to borrowers with deep subprime credit.

    Poor credit store cards

    Consumers across the nation are seeing higher credit scores, but regional variations persist. People living in the Deep South and Southwest have lower credit scores than the rest of the nation. States in the Deep South have an average VantageScoreĀ® of 652 compared to a nationwide average of 673. Southwestern states have an average score of 658.

    States in the upper Midwest outperform the nation as a whole. These states had average VantageScoresĀ® of 689.

    Poor credit store cards

    Poor credit store cards

    Unsurprisingly, consumers across the southern United States are far more likely to have subprime credit scores than consumers across the north. Minnesota had the fewest subprime consumers. In December 2016, just 21.9% of residents fell below an Equifax Risk Score of 660. Mississippi had the worst subprime rate in the nation: 48.3% of Mississippi residents had credit scores below 660 in December 2016. 35

    Poor credit store cards

    These are the distributions of Equifax Risk Scores by state: 37

    Poor credit store cards

    In general, older consumers have higher credit scores than younger generations. Credit scoring models consider consumers with longer credit histories less risky than those with short credit histories. The Silent Generation and boomers enjoy higher credit scores due to long credit histories. However, these generations show better credit behavior, too. Their revolving credit utilization rates are lower than younger generations. They are less likely to have a severely delinquent credit item on their credit report.

    Gen X and millennials have almost identical revolving utilization ratios and delinquency rates. Compared to millennials, Gen X has higher credit card balances and more debt. Still, Gen X’s longer credit history gives them a 21 point advantage over millennials on average.

    Poor credit store cards

    To improve their credit scores, millennials and Gen X need to focus on timely payments. On-time payments and lower credit card utilization will drive their scores up.

    A report by FICOĀ® showed that younger consumers can earn high credit scores with excellent credit behavior. 93% of consumers with credit scores between 750 and 799 who were under age 29 never had a late payment on their credit report. In contrast, 57% of the total population had at least one delinquency. This good credit group also used less of their available credit. They had an average revolving credit utilization ratio of 6%. The nation as a whole had a utilization ratio of 15%. 39

    Poor Credit? Here’s How to Get Those New Shoes With no Credit Card

    Poor credit store cards

    We all know how much women love to shop. It’s one of our favourite pastimes, and can be highly therapeutic (seriously)! There’s something about hitting the shops with your gal pals that makes you feel good. A bit of retail therapy is enough to sort any girl out. And the credit card is so often our most trusted ally.

    However, these days it’s more difficult to make ends meet than in the past. And many of us are going to be in some kind of debt. This can make it pretty difficult to get a credit card if you have a bad credit rating. But don’t worry, that shouldn’t stop you from being able to new Manolo Blahnik’s that are on the market ! These are some alternative options to a credit card for girls with poor credit.

    The easiest place to start with this is to save up and use cash for your shopping. This might be tricky because it’s so difficult to save money without spending it! But if you’re serious about it you need to try to do this. Saving from your paycheck each month is not going to be affected by your credit rating. So this is the easiest and best way of saving up to get what you want. You are going to have to be quite disciplined with it though!

    One of the best forms of shopping available to us ladies is catalogue shopping. We’ve all most likely done a bit of this at some point. And when the Avon lady pops round we can’t help but have a browse! There are excellent ways of getting catalogues even if you have a poor credit history. Check out this list of catalogues for bad credit history that you can choose from. This still enables you to do your shopping and not have to worry about your bad credit getting in the way.

    Another thing us girls love is store credit. If you shop somewhere quite often, you might have accumulated some store cards over time. Now, you can use these cards to make purchases and obtain store credit. The good thing about them is they can often be easier to obtain than regular credit cards. So you don’t have to worry about your credit rating stopping you from buying what you want. Store credit and store cards are an excellent way of supplementing your cash when you go shopping.

    You might think that poor credit will prevent you from getting a loan, but that’s not the case. Sure, a lot of loans will not be accessible to you. However, there plenty of loans out there that cater to people with bad credit. So you should be able to get some sort of loan to help you out with your shopping. However, you’ve got to be aware that you will have to pay back the loan eventually.

    These are just some of the ways you can afford to shop for those shoes even with poor credit. There are plenty of options available to you; it’s just a case of being practical. Remember, you don’t want to run yourself too far into debt, and with these methods you can certainly avoid that risk.