Getting a Credit Card with Bad Credit

Getting a credit card with bad credit is not as hard as you may think. The types of credit cards that can be obtained with bad credit is the real problem.

There exists a financial practice called adverse selection. Adverse selection is the process of singling out potential customers who are considered higher risks than the average. Credit card companies combat this risk (the risk that people will default on their credit cards) by charging higher interest rates and annual fees. However, this is where the problems begin. If I have a great credit score, why I am going to get a credit card with high interest rates and high annual fees? The answer is, I would not get the card. Therefore, because people with good credit do not want the card, only people with below average credit scores (people that are “high risk”) apply for and obtain the card. Thus, a vicious circle is created. As the credit card companies charge more interest and fees on particular cards to offset the potential of default by high risk cardholders, those particular cards are only obtained by high risk cardholders. Thus, the behavior that the credit card company set out to deter is actually being promoted by the credit card companies’ practices.

So, if you have bad credit, where does this leave you? This leaves you with bad options as to credit card ownership. First, you could get one of those high interest, high annual fee, and low credit limit cards. You will probably pay more in annual fees and interest than you will principal. However, having the card (as long as it is a major credit card; Visa, MasterCard, American Express, or Discover) and using it responsibly will help raise your credit score.

Second, you could obtain a secured credit card. This means that you have to put down a deposit. The amount of the deposit is the amount of your credit limit. It works as a debit card except that it is reported as a credit card (which is a benefit), but it also has high fees and interest rates (these are disadvantages).

Last, you could obtain a merchant credit card (Macy’s, Dillard’s, Sears, etc.). Having this kind of a card will help boost your credit score. However, the interest rate is going to be very high. These cards usually do not have annual fees, but the high interest rate is a great disadvantage.

Even though options are limited and not the best, they are options. Start reestablishing your credit today so that you can help finance your future and save money.

Strategies for "Thinking Outside of the Box"

In this day and age, telling somebody to think "outside the box" is pretty cliche. However, despite the overuse of the phrase, the concept that is encompasses is still sound strategy. Thinking outside the box or creative idea creation is an important skill that all entrepreneurs should try to obtain. The problem that most entrepreneurs have is that they become slaves to their ideas. This is a problem because a person, regardless of race, religion, gender, creed, educational status, and economic position, is restricted by the boundaries of his/her own biases, tastes, and opinions. However, you can overcome these boundaries by practicing a few simple strategies.

First, you can bring in an outside opinion. By bringing on an outside perspective, you are able to identify your biases and correct them or accept and utilize your bias, depending on your situation.

Second, you can evaluate your idea or decision to see if your biases have infected your thought process. This is very hard to do because a person usually does not recognize or know his/her biases. Most people write their biases off as fact and therefore, do not analyze the bias. This is the biggest problem with self-evaluation. However, it is a helpful tool that will be able to help you identify some, but not all, of your biases.

Last, when all else fails, do not use your idea. Thinking outside the box can include using the ideas of others. Talk with others, brainstorm, or get a "think tank" together to see what can develop.

Learn to identify your biases and how to evaluate their affect on your idea, and you will be able to come up with more creative, successful ideas.

How to Create A Business/Marketable Idea

As you begin your entrepreneurial journey, many questions and concerns will arise: How do I find financing? How do I write a business plan? To whom will I pitch my plan? However, no matter how much information and advice you can, and probably will, obtain about those questions, all of your questions and all of the available information and advice are based on the assumption that you have already created an idea, product, or concept.

What if you have not yet created an idea, product, or concept? Does this mean that you can never advance or achieve your entrepreneurial goals? Of course not! Although creating an idea, product, or concept can be one of the most difficult obstacles to overcome, it is not impossible and can be achieved rather painlessly.

The main problem with idea creation is that ideas are subjective. What one person considers a great idea, another may consider a terrible idea. Another problem with idea creation is that if the idea is forced, it will not be completely thought out, and therefore has the potential to become a “bad” idea.

Let me clarify something, you do not have to have an idea, product, or concept to become or continue to be an entrepreneur. Partnering with others is a large component of being an entrepreneur. Just know that unless you have a lot of money to invest or have specialized education or experience, your options will be limited. Due to this fact, many new entrepreneurs have to possess new, innovative, and creative ideas to make up for their lack of funds.

Some people are lucky enough to be born with creative ability. These people can create ideas and concepts with little or no difficulty. Knowing people who have this gift will benefit your situation. If you happen to know people with this ability, you should create a business relationship with them. They may be able to help you through any creative mental blocks that may occur now or in the future.

Back to the main point; how do you create an idea? First, you have to know what you are interested in and what type of education and experience you possess. Determining these factors will help you focus your thought process. For example, if you are interested in computers, but have no education or experience with computers outside of internet surfing or word processing, it will be difficult to create a marketable idea for computer software components. Know your limits and keep your thought process reasonable. In other words, do NOT let your imagination run wild. When you become good at creating ideas, then you can let your imagination do some work, but not at first.

Second, ideas are like dreams. Have you ever experienced the phenomenon of having a dream, waking up remembering the whole thing and then five minutes later not remembering any of it? In my experience, ideas follow the same pattern. An outside stimulus will trigger an idea and soon after having thought it up, I cannot remember any of it. The way to remedy this problem is to get a small notebook to write ideas in. Get one of the little notebooks that you see police carry in their shirt pocket. Whenever you have an idea, write it down! This way you can look at your notebook and later begin to develop your idea.

Third, ideas occur like magic. I know this sounds cheesy, but hear me out. Have you ever been sitting on your couch and a friend or family member asks, “What is the name of the actor in X movie?” You know the answer, but, for the life of you, you cannot remember the actor’s name. You eventually get frustrated and give up. Then, ten, twenty, or even thirty minutes later you are watching television, not thinking about anything and then “poof,” the actor’s name pops into your head. Ideas also follow this pattern. The truth is every person has had at least one good idea in his/her life. Sometimes, without noticing it, a stimulus awakens something in our subconscious and an idea pops into our head. When this happens (and it will happen because I guarantee it has happened to you before and you have not noticed) write it down in your notebook for further development.

Fourth, if by chance neither of the two phenomenon mentioned above occur or you are not patient enough to wait for them, more practical methods exist to stimulate idea creation. Going back to my first point, focus your thought into a field of interest. For example, if you are interested in cooking, maybe you have a problem with the way an oven can dry out a chicken when cooking. Now that you have identified a problem, brainstorm and think of as many solutions as possible. It does not matter how crazy the solution is, just think about them and write them down. After you have written down every possible solution, no matter how crazy, go through the list and find the solution that you feel you can best accomplish. Surprise! You have come up with an original idea. This does not mean that you should pitch this idea tomorrow. All this means is that you should develop your idea, mold your idea, and perfect your idea into something you think people would buy if in the market. Also, this way of thinking will get your creative juices flowing. You may find yourself traveling a different path from your original field of interest. If this occurs, follow the thought until completion. You may be surprised where it leads!

Remember, do not force your ideas, take a break if you need one, and BE PATIENT! Do not expect miracles the first time. Go through the process and everything should work out. Write down ideas when they hit or sit down, focus your thought, find a problem, think of a solution, and develop YOUR original idea.

Lastly, be proud of your creation. Ideas, like people, need nurturing and development. If you do thee things, idea creation will become second nature to you.