Unsecured Credit Cards For Bad Credit
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Bad Credit Doesn't Rule Out Unsecured Credit Cards
Many people believe that because of their bad credit, unsecured credit cards are not available to them. While it may be more difficult, there are options for people with bad credit who want an unsecured credit card to build their credit or have available for use in an emergency. While a secured credit card is the most commonly recommended option for people with bad credit, unsecured credit cards ARE available - even for those with the worst credit.
Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards
One of the easiest ways to get a credit card when you have bad credit is to opt for a secured credit card. With a secured credit card, you deposit money in a bank designated by the credit card company to serve as a 'security deposit' - an assurance that they'll get their money if you default on payments. Depending on the lender, that deposit might be equal to your desired credit limit, or slightly higher or lower. A security deposit of 0, for instance, might get you a 0 line of credit with one company, a 0 line of credit with another, and a 0 one with yet a third. The interest rate is generally competitive, since the company has a guarantee of getting its money if you don't make payments.
Unsecured Credit Cards For Bad Credit
An unsecured credit card requires no security deposit. A bad credit unsecured credit card will often have either a high APR (annual percentage rate), high fees, or both. How do the two stack up against each other? Here's a comparison from two actual credit card offers that are sitting on my desk as I write:
Secured Credit Card
Security Deposit: 0
Annual Fee:
Setup Fee:
APR: 15.40%
Credit Limit Increases: 0 increments, each require 0 deposit
Unsecured Credit Cards For Bad Credit
Bottom Line: It will cost you 0 to maintain a 0 credit limit for the first year, with at least 0 up front, at an APR of 15.40%. You'll have 0 available credit upon receipt of your card. You'll have to put up an additional 0 every time you want to increase your credit limit.
Bad Credit Unsecured Credit Card
Annual Fee:
Setup Fee:
Participation Fee: (annual, billed at monthly)
Program Fee: (one time fee)
APR: 9.9%
Credit Limit Increases: (per increase of 0, at their discretion)
Bottom line: It will cost you 4 for the first year, all of it billed to your credit card on your first statement, to maintain a 0 credit limit with an APR of 9.9%. You'll have credit available upon receipt of your card.
In the long run, while a bad credit unsecured credit card may cost you more, you won't be tying up your money up front. Either card will help repair your credit as you make payments on time and regularly, but the unsecured card has an APR that's almost 5% lower. You're the only one who can decide which is the better option for you - but it makes sense to weigh all your options before you decide that your only way to have a credit card is with a security deposit.
@ Copyright 2005 - Bill A Smith
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Where can I get an unsecured credit card with a limit of at least 500 with bad credit?
I have bad credit, really bad credit. I was approved for a credit card with a limit of 300 but by the time they take all of their fees out that leaves me with 50 bucks. Is there anyone out there that would give me a credit limit of more with bad credit? The holidays are here and I can’t even pay my bills let alone gifts or put food on the table…please let me know if you know of anywhere.
Thanks everyone!
Keep working on your credit, by paying bills on time and so forth and when you get an offer with few or no fees, take it. Until then, you can’t do much. But…my first credit card was a store card and then I got a VISA with a $250 limit and an annual fee of $60. I call and get the fee waived every year, I have had the card for almost 5 years now and my limit is $1750. Once you prove that you are responsible with credit, they will give you more. Patience is key.
If you are in a situation where you need money now, a cash advance may be useful, but you must pay it back within a few weeks. But you can usually get up to $250 cash (in the state of California). Speedy Cash is the first place that comes to mind.
Does anyone know of an unsecured credit card for bad credit?
I have very bad credit, and I am looking for an unsecured credit card. I don’t care about the interest rates(beggers can’t be choosers). I just want to rebuild my credit. Any suggestions would be greatly appreciated.
What companies offer unsecured credit cards for people with bad credit?
Please forward info to me
Are there any unsecured credit cards besides Orchard and First Premier available for people with bad credit?
I would really like to find one with a very low annual fee or better yet one that has No Annual Fee. Please list some that you know have a 100% guaranteed approval rate even for those with bad credit.
search the Internet for “secured credit cards”, and then read up on them in consumer magazines like Consumers Union and Consumer Reports.
You put money in an account and replenish it as you use the money, they report you PAID AS AGREED.
You need three of them ($200-300 each is OK), and then get some major retailer and gas cards and build your way up from where you are,
Also negotiate with your derogatory accounts and try to get them to remove, or at least soften, the negative information you already have on your accounts.
What is the easiest unsecured credit card to get for people with bad credit or no credit?
I wanna improve my credit and I basically have no credit….. My credit score is like below 600 and I want a unsecured credit card that doesnt charge any membership or crazy scam…… I dont care if interest is astronomical……
Provide sources and information on the reliability of issue please if possible.
In the UK, it would be either Capital One or Vanquis. However, Vanquis do not offer any online facility so you have to manage your account the old fashioned way.
try Orchard Bank (www.orchardbank.com). They have a pretty good card and there’s no annual fee. Watch out for cards that say unsecured and then hit you for a ‘participation fee’ ‘set up fee’ ‘annual fee’, etc, to where your first 300.00 is eaten up in fees.
You’ll probably end up paying a higher interest rate, but make your payments on time and you should be able to qualify for a better card in a year or so.
Usually the type of card that you’re looking for are geared for people with good to excellent credit. Think about this, do you think rewards should be given out for lousy credit? Of course not, it’s the nature of the beast. Not all people with bad credit are bad people at all, I’m not saying that. Bad things do in fact happen to good people, I definitely belive that. But the best credit card to get if you have lousy credit would be Orchard Bank. First Premier builds your credit but that’s after you have to pay a balance racked up in fees, so don’t even mess with them. Captial One’s pretty easy to get but they don’t report your account correctly to the bureaus (they don’t report your limit). In the credit game, in order to get respect (low fee or no fee and low APR) you have to earn or gain repsect. Bank of America and Wells Fargo both have secured cards with fairly low annual fees if you don’t mind putting up a security deposit to get the same amount in a line of credit. Take care of the card, and usually after a year, you’ll get the deposit back with interest and the card converts into an unsecured card. That’s if you want to go that route.
Hey look, I know that I may have been a little abrasive in my answer, and I’m sorry about that. But, I’ve been there before myself, and I’ve seen firsthand what works. Also, I posted links to the websites for those companies I mentioned.
I hope that this is useful for you,
Take Care and Good luck!