My definition is that it is for people with little or bad credit. The price is often lousy limits, lack of toll free customer service for some companies, annual fees, high interest rates (often above 17%), and sometime account initiation fees. But the advantage is they help establish or re establish credit. Steph
Thanks. I need to contact all my current creditors to establish a new payment plan, due to previous deliquency. What would be a good way of going about this? I am currently about 3 months behind and don't want to ruin my credit.
Subprime is used to describe a market sector characterized by consumers with damaged or no credit. Subprime credit cards or loans typically require security deposits, annual or application fees, or higher percentage rates because consumers who apply for these offers have had credit problems in their past or lack credit altogether. Prime is used to describe a market sector characterized by consumers with good or excellent credit. Prime credit cards or loans usually do not require security deposits or application fees, offer lower percentage rates and reward programs alongside other benefits
Re: 3 months behind I have heard of credit card companies lowering the Apr and setting-up a repayment plan when contacted, Some will even remove the late charges. When calling the best bet is to be sincere ... I fell behind and need to set-up a plan to catchup ... I would rather not have to deal with CCS (consumer credit counseling) If a repayment plan can not be worked out and you will continue to be late CCS is an option, they are a nonprofit group which will set up a working budget. I believe it will show up on your reports as financial counseling. Most companies will try to work with you, if the first person who answers does not seem helpful, politely end the call and try back a few minutes later. Do not make any repayment promises you can not keep, if the numbers don't work be upfront about it. When I made this phone call my biggest creditor suggested I was better off filing Chapter 7 rather than going through CCS. At any rate they did not see a workable solution so I took their advice. Hopefully, I am older and wiser now.
