Southern Caribbean - Providian - A Credit Card For the Masses

But many others followed, they started the trend. With 10 million cardholders when it was sold to Washington Mutual in 2005, the Corporation was one of the largest credit card issuers in the US, formed in 1984. Those rejected by others, the unemployed, providian Financial Corporation became famous as the first to start offering credit cards to those who could not get it otherwise: the poorest.

How Can They Afford It?

And it raises the interest rate to 30%, punishment for late payment is severe. Providian interest rate hugely depends on how promptly the customer pays bills. Things changed a bit since. Providian was charging 29.9 percent interest, at its peak. The secret is in very high interest rates. And who were rejected by everyone else, did you ever wonder how can credit card companies afford to give cards to those who have very little chance of paying for the purchases?

But they complain when they get punished for the late payment with increased interest rate, 000 and no annual fee, they like very high credit limit - up to $15. When every other card issuer refused them, they are grateful to be given a chance, on one hand. Providian customers have love/hate relationship with the card issuer.

How People Get Bad Credit Rating

That is where Providian comes in. The best way to repair a bad credit rating is to have a credit card and to pay it promptly, to make things more complicated. Bankruptcy stays as a part of person's credit rating for 10 years, for example. It takes very long time to recover it, once credit rating is low. Bankruptcy or no income, due to late payment or no payment of their credit and other debts, others got bad credit rating. Some are refused because they never had a card and do not have credit rating. Majority of Providian customers are those who were refused by other credit card companies.

What Does Providian Offer?

Depending on the cardholder's payment of monthly minimum fee in time, but after that anything can happen, there is no fee for balance transfers for the first 12 months. Which is a big deal for people who are in financially dire situation, providian does not have annual fee. Which can be nerve wrecking for people who went through the rejection from other credit card companies, there is no credit check and no waiting for approval. The most attractive feature of Providian is automatic approval.

Just owning a credit card affects the credit rating positively. Prepaid credit are very popular way of rebuilding credit rating. But to a credit card holder himself or herself, what makes this type of the card not only a great gift to a family and friends, prepaid cards assure that a person spends exactly what is already deposited on the account and no more. Which they offer as a gift card, but by far the best Providian card is the pre-paid card, providian has a range of other offers.