There's several
options if you have bad credit... So you
find yourself in a bad credit situation and it seems like there's no way out.
You're finally ready to address the problem, but no one will give you the chance
to prove yourself. There's many steps you can take to repair your credit, but
eventually you'll need a credit card to help build your credit score and get back
on track. Although most credit card companies
tend to cater to people with good to excellent credit, there's many issuers who
offer credit cards designed specifically for people with poor credit histories.
If you have bad credit, or no credit at all, you have 3 basic options to choose
from: Secured Credit
Cards Secured
credit cards are available to almost anyone, regardless of their credit history.
That's because the credit line is guaranteed - or secured by a security deposit
which can be anywhere from $250 to $5000. For example, if you deposit $300 on
a secured credit card, you'll receive a credit line of $300. It
may not seem like a true 'line of credit', but the charges you make with a secured
credit card will be reported to the 3 major credit bureaus, and timely payments
will show a positive track record on your credit report. Eventually, with regular
on-time payments, you'll be able to improve your credit score and move on to a
better credit card with no security deposit and lower fees. Standard
Credit Cards An unsecured
credit card is a 'standard' form of credit card which doesn't require a security
deposit. It's terms are based solely on your credit report. Although most unsecured
credit cards are out of reach for people with poor credit, some credit card companies
offer unsecured credit cards designed specifically for individuals in bad credit
situations. Normally, these cards have lower credit limits, higher interest rates
and additional fees when compared to standard unsecured credit cards. But they
do not require a security deposit like secured offers. Prepaid
Debit Cards Prepaid
debit cards operate just like a prepaid phone card-- on a pay-as-you-go basis.
They can be used anywhere major credit cards are accepted and offer many benefits,
including: safety and convenience, fraud protection, no bills or interest charges,
ease of use and ability to control spending. But
be aware, not all prepaid debit cards report your activity to the major credit
bureaus. While you can benefit from the safety and convenience of carrying plastic,
your credit score may not be affected if the card company doesn't report your
activity to credit agencies. Luckily, many prepaid offers report your card activity
or offer this option for an additional monthly fee. See
a complete list of credit cards for people with bad
credit >
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