Can You Really Get an Unsecured Credit Card for Bad Credit?
If you have bad credit history, it may seem like you have fewer opportunities when applying for credit. Today however, many creditors are modifying their terms to accommodate the bad credit market. In the past, a secured credit card is your only option if you have bad credit. Today however, it is possible to acquire an unsecured credit card for bad credit.
Unlike a secured credit card, an unsecured bad credit credit card does not require the submission of cash deposit. Nevertheless, the credit limit may start out low. Most issuers offer a credit limit of $300 or less for a customer with bad credit history. However, you can use an unsecured bad credit credit card as a tool for rebuilding credit As your credit score improves, you can request for a higher credit line from your issuer as well.
How about the interest rates and fees? The interest rate is bound to be much higher for an unsecured credit card especially if you have bad credit. Since you will not be submitting a cash security deposit, the risk of default is greater. Hence, the issuer may also impose higher fees to make up for the risk.
Can you count on guaranteed approval despite your present credit standing? You can find guaranteed approval bad credit credit cards in the market. For example, the Horizon Gold Credit Card is especially designed for customers with bad credit and offers guaranteed approval. There is no application fee and the credit card reports to a major credit bureau so it can be used to rebuild bad credit.
Another type of guaranteed approval bad credit credit card is the Orchard Bank Classic Mastercard. This unsecured credit card for bad credit reports to all three major credit bureaus which makes an ideal tool for credit repair. Email and text message are also sent to ensure that you will not miss or forget your due date of payment. Remember that timely payment is a key to improving a low credit score since 30% of the FICO score is based on payment history.
There is also the Visa Gold Card from Applied Bank which offer $500 credit line with no deposit required. It offer credit reporting provision, 24.7 online account services and with no application or processing fees.
Indeed, you have a number of choices to choose from if you want an unsecured credit card for bad credit. Take the time to compare and choose the credit card that best matches your lifestyle and needs. The most important thing is to ensure credit reporting to a major credit bureau so you can improve your credit one step at a time.
Using an unsecured credit card for bad credit, you may need to work on improvement for at least 6 months or longer, depending on how bad the damage is. As you improve your credit score, take the initiative to request your issuer if you can enjoy a higher credit limit, a lower interest rate, and reduced charges.