High risk lenders are lenders that prey upon people who have bad or no credit and promise to help establish credit for you but under the guise of bad or no card credit offer providian only very high interest rates to begin with or also require a down payment or membership fee to have the opportunity to have this wonderful high interest rate. These could be finance companies, payday loan companies, auto dealerships, furniture companies, rent to own companies, companies that cater to people who have no credit or bad credit and trying to establish credit or don’t know that there are better ways of establishing credit.

The solution… there are several ways to counter this and most people don’t know where to begin. We will tell what works here, but the details will be written below in the Credit Repair section. First, you could repair the negatives on your credit by disputing the negatives with the credit bureaus. You could go to a national bank and start a Secure Credit Card with them to establish a pattern of good credit and when your credit scores are up, then negotiate to an Unsecured Credit Card. The trick is to avoid High Risk Lenders at all costs. They cost too much, and actually cost you points so that your scores stay low and keep you in a high interest rate bracket that costs you money over and over again.

Like this post? Subscribe to my RSS feed and get loads more!