Credit Card For Poor Credit
A poor credit credit card is one that does not have difficult approval requirements. Different types include unsecured, secured, shopping, and prepaid credit cards.
An unsecured card is where you will be extended a line of credit. These cards will often come with some high fees ranging from $150 - $200.
With a low credit score, each of these cards will unfortunately have fees. An unsecured card is the riskiest type, so they will therefore have the highest fees.
To receive a secured card, you must open and deposit money into an account. The credit limit on your card will be equal to the amount of your deposit, which is used to secure the card.
Secured cards work the same way as unsecured card-you will have monthly bills and an interest rate. If you close your account on good terms, your deposit, which earns interest for you, is fully refundable.
Additionally both an unsecured account and a secured account will report to the major bureaus. Another choice is a shopping card.
However, we do not recommend this type of card! A shopping card is only accepted at a certain retailer, which often is part of the credit card company.
Shopping cards usually report to only one of the bureaus. In addition, you may incur higher costs on the merchandise and a monthly membership charge and/or large down payment.
Prepaid debit cards, the final option, are similar to a bank card or checking account. You can use bill pay for your bills and can place funds into your account through direct deposit.
You must, however, pay careful attention to the fees associated with prepaid debit cards. One of the most popular cards charges a convenience fee of $1.00 for every purchase you make with the card.
Those with poor credit scores see a reduced number of options when it comes to credit, but people have negative items removed from their credit reports every day.
You don't have to live with the high cost of bad credit, even if your credit report is damaged. By contacting the credit bureaus and having negative items removed, you won't have to wait seven years for them to be taken off of your report.
There are numerous credit card options out there, even for those with poor credit. Before applying for a card, be aware of all the associated fees and if the card reports to the three credit bureaus.
An unsecured card is where you will be extended a line of credit. These cards will often come with some high fees ranging from $150 - $200.
With a low credit score, each of these cards will unfortunately have fees. An unsecured card is the riskiest type, so they will therefore have the highest fees.
To receive a secured card, you must open and deposit money into an account. The credit limit on your card will be equal to the amount of your deposit, which is used to secure the card.
Secured cards work the same way as unsecured card-you will have monthly bills and an interest rate. If you close your account on good terms, your deposit, which earns interest for you, is fully refundable.
Additionally both an unsecured account and a secured account will report to the major bureaus. Another choice is a shopping card.
However, we do not recommend this type of card! A shopping card is only accepted at a certain retailer, which often is part of the credit card company.
Shopping cards usually report to only one of the bureaus. In addition, you may incur higher costs on the merchandise and a monthly membership charge and/or large down payment.
Prepaid debit cards, the final option, are similar to a bank card or checking account. You can use bill pay for your bills and can place funds into your account through direct deposit.
You must, however, pay careful attention to the fees associated with prepaid debit cards. One of the most popular cards charges a convenience fee of $1.00 for every purchase you make with the card.
Those with poor credit scores see a reduced number of options when it comes to credit, but people have negative items removed from their credit reports every day.
You don't have to live with the high cost of bad credit, even if your credit report is damaged. By contacting the credit bureaus and having negative items removed, you won't have to wait seven years for them to be taken off of your report.
There are numerous credit card options out there, even for those with poor credit. Before applying for a card, be aware of all the associated fees and if the card reports to the three credit bureaus.
About the Author:
For more about Bad Credit Credit Cards or for a review of the Total Visa Card an unsecured credit card visit us. For a free credit consultation call 1-800-253-3735.
posted by Debt Consolidation Loan at
3:28 PM
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