If you suffer from bad credit, it is likely that you will not qualify for a regular credit card because most issuers require at least good or average credit. Do you have other options? Yes, you do. In fact, you have a number of options.
You may choose to get a secured credit card which requires cash security deposit. You can also get a prepaid debit card but it does not provide you with a credit line. You can only use your prepaid card as long as you have available funds in your debit account.
Another option is to apply for an unsecured bad credit credit card. This article focuses on this particular type of credit card for bad credit. What is an unsecured bad credit credit card and what makes it different from other bad credit credit cards?
Unsecured Credit Cards for Bad Credit
Compared to a secured credit card, an unsecured bad credit credit card may charge higher fees. There is usually a one-time application fee plus a one-time processing fee to get started. You must also pay a monthly fee which can range anywhere from $5 to $15. Aside from the monthly maintenance charge, all unsecured bad credit credit cards carry annual fees to keep your account active.
Indeed, maintaining an unsecured credit card for bad credit can prove to be expensive if you add up all the costs. Nevertheless, if you have damaged credit, you can use this as a tool to rebuild your credit rating and once again qualify for a standard credit card with the best deals.
Unsecured Bad Credit Cards In the Market
One example of an unsecured credit card for bad credit is the Horizon Gold Credit Card. It offer guaranteed instant approval for everyone and unlike other unsecured bad credit cards, there is no application fee. More importantly, this card reports your payments to a major credit bureau so you can use to improve bad credit.
Another type of unsecured bad credit credit card is the Orchard Bank Classic MasterCards. It is a wonderful tool for people who want to work on credit improvement because it regularly reports payments to all 3 major credit bureaus (Experian, Equifax, TransUnion). Online Account Access is also provided so you can monitor you account conveniently at any time right from your computer or notebook.
Orchard Bank Classic MasterCards cardholders are also sent payment alerts through email and text messages so you can be reminded about your up-coming due date. This unsecured bad credit credit card helps you to avoid missing another payment due date which is essential in credit rehabilitation.
When looking for an unsecured card for bad credit, make sure that you are getting it from a reputable resource or issuer. As much as possible, look for a card that will report your monthly payments to all three major credit bureaus so your credit history can be updated as you use the card for payment. After six months, check your report and if your credit score has improved, see if you can qualify for a regular credit card with a less number of fees.