What Credit Card Is Best for People With Bad Credit Scores?
Credit cards for people with bad credit
There are a lot of financial institutions who are able to offer credit cards to individuals who have bad credit scores. In such a manner, if you belong to one of these individuals who have bad credit scores or have not yet availed of a credit card at all, then you have an option waiting for you which allows you credit cards for repairing credit as well as rebuilding credit. People without good credit rating are given two options tp build credit from scratch.
Best unsecured Credit Cards
The first option that is available for you is the application of an unsecured card. What is an unsecured credit card? An unsecured credit card is a type of credit card that does not require a security deposit to be approved by the financial institution. Though the application process is easy, your credit limit will still depend on the credit rating that you recently have if you are accepted. Most of the time, these unsecured credit cards offer quite a bit of an interest that is higher than the rest, and it is also mostly lower in limit especially to those individuals with very poor credit scores. There will be a credit check on your credit history that is to be done by the financial institution that you chose, and this will be the basis of their approval to you new application. Despite the fact that there is a tendency for your credit limit to have an increase, you will still have to wait for several months before your credit will be reviewed.
o This makes starting over with credit cards advantageous to you by proving that you are able to do monthly payments on time.
o You will not be allowed to use your regular debit cards to make your payments as well as access your funds when you need it the most like in emergency cases.
o You will need to begin with low credit limits
o You will also have to put up with high interest rates
o To top up all of these, there is no escaping the annual fee that you have to pay
Prepaid Credit Cards
This is different from those unsecured credit cards since these prepaid credit cards does not allow you any access to funds that you do not own. To put it bluntly, it does not allow you to go on debt since you do not need an excellent credit history which will allow you to apply and be accepted. The reason for this is because these prepaid cards are very much like the debit cards that you have. All you have to do is to put a balance on it and the credit limit that you will have is the amount of the money that you stored in it. In most cases, these cards are refillable although there might be some that are not.