If you have bad credit or poor credit, it doesn’t mean that you have to try to get through life without a credit card. In fact, there are a number of credit card options out there that you can take full advantage of. After all, the competition among credit card companies to gain and retain customers is quite fierce. As such, many are willing to take a risk with someone that has less than ideal credit. Many even offer credit cards that are specifically geared toward people in the same situation as you.
• Prepaid debit cards
• Secured credit cards
• Unsecured credit cards
Prepaid cards and debit cards are those cards that you pay into ahead of time. These cards aren’t actually credit cards because you do not borrow money from them that you will pay back later. Rather, you send the cash to them beforehand and your limit is based on how much money you have pre-loaded onto the card. You don’t have to go through any type of verification or approval process with these cards.
While prepaid cards and debit cards may not be as attractive to you as credit cards because you have to pay them ahead of time, they do offer you the same conveniences that you get with credit cards. You can leave the green at home and carry just the plastic, which will provide you with an added level of security protection. You can also use the card to make reservations on planes and in restaurants. In addition, if you choose the right card, your prepaid card or debit card will also help you to build credit and become eligible for a credit card with a better interest rate than what you might be currently eligible for.
A secured credit card is also paid ahead of time, much like a prepaid or debit card. These cards are referred to as secured because you offer something as collateral for the debt on the card. Often, the collateral is money that you load onto the card. In some cases, you may receive a credit limit that is beyond the amount of money you have sent to the credit card company. As your credit history improves, the company may also increase your limit.
Unsecured credit cards can be a bit more difficult to get if you have bad credit because there is no collateral associated with an unsecured card. If you do manage to get one of these cards, the interest rate is most likely going to be high. Therefore, you need to try your best to pay the balance in full at the end of the billing cycle so you can avoid finance charges. This will also help to improve your credit, which can make you eligible for cards with better interest rate offers.
Whichever type of card you decide is right for you, be sure to use it responsibly and you will soon find yourself out of the “bad credit” credit trap.
Related Posts:
- Reasons to Consider a Prepaid Credit Card - If you are looking to get your credit on track or are simply interested in finding a way to enjoy the conveniences...
- Top 5 Reasons to Apply for a Prepaid Credit Card - Are you considering applying for a prepaid credit card? Although prepaid credit cards typically have more fees than you would find with...
- Prepaid Credit Cards May Not Be the Way to Go - One of the most convenient ways to shop may be by using a prepaid credit card; you know the type – you...
- No Credit? Try A Prepaid Card Or A Co-Signer - It can be a difficult idea to swallow, but many say you have to have credit to get credit. These days, everything...