Credit Cards For Poor Credit

A poor credit credit card is one that does not have difficult approval requirements. Different types include unsecured, secured, shopping, and prepaid credit cards.

Unsecured cards offer you a line of credit and often come with high fees ranging from $150-$200.

Unfortunately with a low credit score all of these cards will have some fees; however an unsecured card will have the most. This is because it is the riskiest lending.

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.

With a secured credit card, you will have monthly bills and an interest rate, just like an unsecured card. You deposit earns interest and is 100% refundable, provided 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.

However, we do not recommend this type of card! A shopping card is only accepted at a certain retailer, which often is part of the credit card company.

Shopping cards usually report to only one of the bureaus. In addition, you may incur higher costs on the merchandise and a monthly membership charge and/or large down payment.

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.

You must, however, pay careful attention to the fees associated with prepaid debit cards. One of the most popular cards charges a convenience fee of $1.00 for every purchase you make with the card.

We suggest the secured Orchard Bank MasterCard if you have poor credit because they offer guaranteed approval and report to all three credit bureaus.

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Those with poor credit scores see a reduced number of options when it comes to credit, but people do have negative items removed from their credit reports every day.

If you have a damaged credit report you do not just have to live with the high cost of bad credit. Instead you can dispute items and remove them from your report and without just waiting seven long 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.

For a free credit consultation call 1-800-483-0256