An unsecured bad credit credit card is a type of credit card that is particularly intended for individuals with bad credit standing. Since regular credit cards can only be acquired by people with good to excellent credit scores, credit card companies came up with a type of service that will help people with bad credit improve their credit scores and qualify for regular financial assistance.
Unsecured credit cards for bad credit are just like regular credit cards. It can be used to for payment at any establishment that accepts credit card payments, online transactions, automatic payments and other basic service that credit cards offer.
The differences that unsecured bad credit credit cards have over regular credit cards are interest rate, repayment terms, and basis of how the credit company determines the applicant’s credit limit. Since the person applying for this type of credit card has bad credit, fees and charges would be different. The credit limit will be determined based on the applicant’s credit score.
Other than being a useful financial aid for a person with bad credit, an unsecured bad credit credit card can also be beneficial in many ways. For instance, this card can be a tool to improve the credit standing of the card holder effectively. Most credit companies report to the major credit bureaus which is responsible for determining the creditworthiness of every person.
Another benefit is the security and safety it provides to its cardholders. Cardholders are required to present an I.D. before every transaction and will receive a statement of accounts every month. Depending on the credit company, cardholders usually have the option to place a picture of themselves in the credit card itself to ensure a safer transaction.
However, a card holder must use his unsecured credit card for bad credit properly to fully enjoy all the benefits it has to offer. The card holder is responsible in making sure that credit purchases do not go over limit to avoid incurring additional fees. It is also important to submit monthly payments in a timely manner to avoid late penalty charges.
Card holders is also advised to check monthly statement of accounts regularly to make sure that all charges are accurate. In case errors occur, it would be easier to dispute incorrect charges if you can inform your issuer immediately.
Applying for unsecured credit cards for bad credit is very easy. The applicant only needs to send an online application to the official website of their chosen credit card company. Since most credit companies offer instant services, the applicant can expect a call or an email notification that verifies the applicant’s credit card request. Within four to five banking days after approval, the applicant will be able to receive the unsecured bad credit credit card by mail.