Finding a credit card when you have poor credit history can be a challenge. Many credit card companies advertise low APR, minimal fees, and great rewards but upon closer look, you’ll discover that these credit card deals are only for people with good to excellent credit. Does this mean you have run out of options? Certainly not!
It is comforting to know that having bad credit does not need to be a hopeless situation. A low credit score is something which can be improved and you can start by acquiring a credit card that is especially designed for bad credit.
There are many types of bad credit credit cards in the market and choose one that is most suited to you. For example, you can apply for a secured credit card or a prepaid debit card. Both of these bad credit credit cards are popular these days precisely because many people are in need of credit repair. But did you know that there are also unsecured credit cards for bad credit?
Yes, unlike a secured credit card, unsecured bad credit credit card does not require the submission of a cash deposit. Therefore, if you’re not prepared to submit $300 of cash deposit and leave it in your account as security for your debt, you can choose an unsecured bad credit credit card.
When looking for an unsecured bad credit credit card, one of the most important features you should check is credit reporting. Will your monthly payments be reported to a major credit bureau? As much as possible, you should choose a card that offer credit reporting to all 3 major credit bureaus so that your credit history can be updated as you’re using unsecured bad credit credit card.
What about the fees? You can expect to pay more fees if you are getting an unsecured credit card. For instance, the issuer may require you to a one-time application fee, processing fee, and monthly maintenance fee for using the card. Most unsecured credit cards for bad credit also carry an annual fee to keep your account active.
Nonetheless, such fees can be well worth the expense if the credit card can help you rebuild your damaged credit. After at least six months of regular credit card use and consistent payment, check your credit report and if you have made a significant improvement in your credit score, perhaps you can already qualify for a regular credit card. If your credit still needs a little more improvement, wait another six months and check your credit report once again.
The Orchard Bank® Classic MasterCards is a great example of an unsecured credit card for bad credit. This particular card does not require an application fee and will report your payments to all three major credit bureaus. To avoid delays or missing your due date, you can receive alerts on your up-coming payments through email and text messaging. Remember, in order to raise your credit score, you must be able to submit all your payments on time.