Credit Card Programs You can Sign up for Even with Bad Credit
Here are three card programs you can apply for and take out, despite your below-average credit rating:
Prepaid credit cards. You can actually buy these cards from retail stores and online shopping sites that are affiliated with banks and credit card firms. What’s great about prepaid cards is that you can easily get one, even if you suffer from poor credit or you’re yet to build your credit profile. That’s because issuers of these cards rarely run credit checks on their prospective cardholders. Truth is you can receive, activate, and soon use a suitable credit card by simply paying for it in cash. Just remember that prepaid credit cards come with low spending limits or caps. Hence, you shouldn’t use them for covering huge bills and purchases. Otherwise, you might end up incurring huge fines and penalties, usually in the form of overdraft charges and declined transaction fees.
Secured credit card programs. Did you know that these credit cards are especially-designed for consumers with bad or no credit? After all, by just submitting the minimum security deposit required by your card issuer; soon you can get your hands on the line of credit you wish to use for financing your day-to-day expenses. But what’s the purpose of the initial deposit? Well, it serves two very important functions. First of all, it determines the actual balance you can use on your new credit card. If you’re able to deposit $1000 on your secured card account then, you’ll be allowed to use 100% - at times, even 150 to 200 percent – of your security deposit. Second, it ensures the repayment of all the charges you will make on your account. In case of default, the credit card company can just tap on your security deposit to cover your unpaid charges. It is also worth noting that secured credit cards are considered the perfect credit builders – meaning, you can use them to jump-start or rebuild your credit profile. That’s because most issuers of these lines of credit offer credit reporting services to consumers, in general.
Instant approval credit cards. There are also card programs today that offer guaranteed approval – that is no matter how low or how high your credit score might be. Unfortunately, most instant approval credit cards that are extended to consumers with bad credit standing carry extremely high rates of interest and fees. So, if you’re currently living paycheck to paycheck and you don’t have extra cash that will cover your interest charges then, it would be wise to stay away from these card programs, for the meantime.
Some Important Reminders Credit cards for poor credit unsecured programs usually vary from one issuer to another. So, you shouldn’t expect that the secured credit card being offered by a bank carries exactly the same features as the one being promoted by a credit card agency. Hence, to boost your chances of receiving a suitable card program, we suggest you take the time to carefully read the fine print of various cards and compare them with each other. In so doing, you can easily pinpoint and eventually pick one that will most definitely work to your advantage. Running background checks on your target card issuers is a MUST. After all, this tip will safeguard you against fraudsters and scam artists, who employ seemingly legitimate credit cards as cover-ups for their illegal activities and machinations.