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Digital News Report – While credit cards are necessary for renting cars, reserving hotel rooms and making some purchases online, they can be difficult to acquire for some people with a bad credit score.
The Federal Reserve released a report concerning non-secured debt. Banks are issuing less credit than before. The Fed reports that revolving credit declined at an annual rate of 6.3% from October to November. Meanwhile non-revolving credit increased.
The Orchard Bank Classic MasterCard was designed specifically for people with a bad credit history. The bank says that using their card can improve the cardholder’s credit score, as long as the payments are made on-time. This card is an excellent way of “rebuilding credit scores” because the bank reports payments to the 3 major credit bureaus.
To help make sure punctual payments are made, the bank can send reminders via email.
The interest rate is between 7.90 and 19.90% (APR). The interest rate will depend on the cardholder’s credit score.
There is an annual fee. The bank may waive the first year’s fee, but will charge between $35 and $59 thereafter.
Anyone over 18 can apply, but the card is designed specifically for people with poor, bad or no credit.
By Tina Brown