What are Unsecured Credit Cards?
In the remainder of this post, we’ll be discussing with you what unsecured credit cards are all about.
Unsecured Credit Cards, Unmasked To better understand how unsecured credit cards for bad credit programs work, it will be good to compare them with secured credit cards.
As we all know, secured lines of credit always come with security deposit requirements. Such requirements help guarantee the repayment of the transactions that will be charged on the credit card. And because of this special feature, secured credit cards tend to have low-interest rates, flexible payment terms, and very few eligibility requirements.
In contrast, issuers of unsecured credit cards rarely ask for initial deposits. Cardholders can look forward to receiving the lines of credit they need even if they don’t submit lump-sums to their target card companies. So long as they can prove that they have excellent credit standing and that they can afford to manage card accounts to their prospective issuers, soon they can get their hands on the credit cards they wish to use.
Still, you should note that the absence of security requirements makes unsecured card programs less affordable as compared to secured credit cards. In fact, some unsecured lines of credit today are found to carry high rates of interest and fees, not-so-flexible payment terms, and very stringent application requirements. Nevertheless, if you will take the time to shop and compare various credit cards, you can improve your chances of finding one that will perfectly suit your needs, spending habits, and most importantly, your budget. Some unsecured credit cards for bad credit also come with beneficial facilities. For instance, there are card programs today that offer high spending limits, zero or low interest balance transfers, and cash advance features. Some also come with exciting perks and incentives – similar to what is offered in reward credit cards.
Tips for Prospective Cardholders Now, if you’re planning to apply for an unsecured credit card then, we suggest that you keep the following pointers in mind.
Look for credible issuers. To avoid getting ripped off by popular credit card scams, it is highly-recommended that you run background checks on your target issuers. Consider the history, track record as well as the accreditation of the firm you wish to do business with. And visit the website of the Better Business Bureau to find out what past and current cardholders are saying about the company you wish to deal with.
Use credit card comparison services online. After all, many websites today have very convenient features that can help you compare various card programs, with just a few clicks of your mouse. In time, you can narrow down your options and soon get re-directed to online forms that you need to fill out and submit to begin your online card application.
Examine the terms and conditions of your credit card program before signing it. Take the time to read and understand the stipulations of your contract. In case you encounter terms, or clauses that are not very clear to you then, don’t hesitate to contact the customer service representative of your chosen issuer. That way, you can receive all the information you need to make a final decision.