Unsecured Credit Cards for People with Bad Credit
72Learn how to get an unsecured credit card with bad credit
If your credit rating has dropped the past while and you are now haunted by bad credit ratings, you financial options will be extremely limited, unless you pay by cash (and if you could, why would you be reading this article). Having a history that includes late or missed payments, bankruptcy, or foreclosure makes it very difficult to secure any loans or even apply for a credit card.
There is a huge segment of the population that doesn’t have good credit. These people are clamoring for access to the financial resources that people with good credit have. Banks are starting to listen and a variety of credit options have been invented specifically designed to allow people with bad credit access to them. Credit card companies too have responded by creating unsecured credit cards for people with bad credit.
Now, as you might gather from the name, these credit cards to not require the user to place a deposit down to secure the card. Since no collateral is required, the credit card companies will have to look at other determining factors, such as proof of income and current employer.
An unsecured credit card has all the advantages of a regular credit card – you can purchase items without having the cash as long as you stay within your credit card’s minimum credit limit.
Some unsecured credit cards also offer bonuses like earning free points (redeemable for rewards) with each purchase or even cash back coupons. The most common is a 1% cash refund on all purchases made through the card. This may not sound like a lot, but think of it this way – if you spend 20k a year on your card, you get 200 dollars back – free money. The rewards can range from free air miles, gift cards, etc.
Another important unsecured credit card for people with bad credit can do is
help you to fix your bad credit. By just getting the credit card and making
payments on it every month for a year, you can fix your credit rating in as
short as a single year. Note that if you are going through something like a foreclosure or signing a fast remortgage loan, it may take longer to fix up your credit.
One way to tell if your credit score is improving is if you notice your credit limit gradually increasing. Other perks such as reduced interest rates, bonus cash back amounts, extra give points may be thrown your way too.
It’s possible to get an unsecured credit card for people with bad credit through a website and get approved in as short as sixty seconds.
How to find unsecured credit cards that suit you best
The majority of the time you will receive most unsecured credit card offers through your mail. However, these credit cards are aimed at people with good credit scores – you will likely be rejected if you apply. If you have bad credit and want to apply for an unsecured credit card, the best way is to shop online for one that suits you. All the major credit cards providers offer a whole range of unsecured credit cards for people with very bad credit.
You can apply in as little as 5 minutes and get approved within minutes – with the approval sent to your email.
Now, just because you can get a credit card with bad credit doesn’t mean you should take the first deal that comes your way. There are certain criteria to choose from that will help you determine the best credit card for your needs.
The first thing you should look at is your interest rate when looking for an online unsecured credit card. It’s ALWAYS best to look for a low interest rate credit card. Just because you are guaranteed instant credit card approval, doesn’t mean you should just apply and accept. You need to be fully aware with how much interest you will be paying per each dollar spent. In general, you should choose an interest rate between 9% and 10% per year – this will allow you to maintain a low balance and keep your payments. You also won’t be paying too much because of high interest.
Another tip for applying for unsecured credit cards is to be aware of the possible application fees you might have to pay. Some credit card providers don’t charge you any application fees and some will charge you upwards of 100 bucks just to apply! You also want to make sure the credit card company will issue credit reports to the various credit bureaus – you want your credit to improve after all.
Bad credit can really affect your life. It's important to learn how to manage your financial options if you have bad credit. I suggest these other hubs for more advice relating to bad credit:
It’s very possible to get unsecured credit cards for people with bad credit. However, you will have to shop around and find the right credit card company that offers the right unsecured credit card for you. It’s crucial that you do proper research on what to expect. But with the right research on your part, you should be able to find an unsecured credit card with low interest rates that appeal to you.
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agrande says:
6 months ago
I'm not sure unsecured credit cards for people with bad credit is a good idea. I think we are over credited and the best thing to do would be to realize we have been living beyond our means and make adjustments. That means either making more money or buying less stuff. Credit is important but we need to learn how to use it.