Credit Card For Poor Credit
Credit cards with easy approval requirements are known as poor credit credit cards. You could be approved for secured, unsecured, prepaid and shopping credit cards.
An unsecured card is where you will be extended a line of credit. These cards will often come with some high fees ranging from $150 - $200.
With a low credit score, each of these cards will unfortunately have fees. An unsecured card is the riskiest type, so they will therefore have the highest fees.
With a secured card, you open a bank account and secure it with a deposit. Your card is then issued with a credit limit equal to the amount of your deposit.
It will work the same way as an unsecured card; you will have monthly bills, and an interest rate. Your deposit will earn interest for you and is refundable if you close your account on good terms.
Additionally both an unsecured account and a secured account will report to the major bureaus. Another choice is a shopping card.
This card we do not recommend! It will only be accepted at a certain retailer which is often another part of the credit card company.
In other words, you may face higher merchandise costs as well as either a monthly membership charge or large down payment. In addition, shopping cards usually only report to one of the credit bureaus.
Finally, there are prepaid debit cards, which are similar to bank cards or checking accounts. You may use direct deposit to fund your account and can use bill pay to pay your bills.
This type of card may have fees associated with it, so pay careful attention. For example, one of the most popular prepaid debit cards charges a $1.00 convenience fee for every purchase you make using the card.
If you have a poor credit rating, your credit choices unfortunately are dramatically reduced. Despite what you may think, though, derogatory items are removed from credit reports on a daily basis.
Don't think that you just have to live with a poor credit rating. You may contact the credit bureaus to dispute the negative items and have them erased without waiting seven years.
There are numerous credit card options out there, even for those with poor credit. Before applying for a card, be aware of all the associated fees and if the card reports to the three credit bureaus.
An unsecured card is where you will be extended a line of credit. These cards will often come with some high fees ranging from $150 - $200.
With a low credit score, each of these cards will unfortunately have fees. An unsecured card is the riskiest type, so they will therefore have the highest fees.
With a secured card, you open a bank account and secure it with a deposit. Your card is then issued with a credit limit equal to the amount of your deposit.
It will work the same way as an unsecured card; you will have monthly bills, and an interest rate. Your deposit will earn interest for you and is refundable if you close your account on good terms.
Additionally both an unsecured account and a secured account will report to the major bureaus. Another choice is a shopping card.
This card we do not recommend! It will only be accepted at a certain retailer which is often another part of the credit card company.
In other words, you may face higher merchandise costs as well as either a monthly membership charge or large down payment. In addition, shopping cards usually only report to one of the credit bureaus.
Finally, there are prepaid debit cards, which are similar to bank cards or checking accounts. You may use direct deposit to fund your account and can use bill pay to pay your bills.
This type of card may have fees associated with it, so pay careful attention. For example, one of the most popular prepaid debit cards charges a $1.00 convenience fee for every purchase you make using the card.
If you have a poor credit rating, your credit choices unfortunately are dramatically reduced. Despite what you may think, though, derogatory items are removed from credit reports on a daily basis.
Don't think that you just have to live with a poor credit rating. You may contact the credit bureaus to dispute the negative items and have them erased without waiting seven years.
There are numerous credit card options out there, even for those with poor credit. Before applying for a card, be aware of all the associated fees and if the card reports to the three credit bureaus.
About the Author:
For more about Easy Credit Cards or for a review of the Baby Phat Rush Card a popular prepaid credit card visit us. For a free credit consultation call 1-800-253-3735.
posted by Debt Consolidation Loan at
9:45 AM
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