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Credit Cards With Bad Credit

by Alex Garrity on 2014/09/30

Is It Impossible To Get Credit Cards With Bad Credit?

It is a common question asked by people that are suffering with a bad credit score. Having  bad credit is a problem and getting approved for a credit cards with bad credit score is difficult but is it impossible to get approved for credit cards with bad credit?

The good news is that banks and lending institutions have various plans to help customers with a bad credit history to get credit cards and here are some of them:

Credit cards with bad credit

Some banks offer unsecured credit cards with bad credit although they require a small deposit. However, they are very different from prepaid and secured credit cards that ask you to maintain a deposit equal to the amount of your credit limit.

The real question to ask you is – are unsecured credit cards with bad credit actually worth it? The answer to this question is typically NO because of the high interest rates.

In most cases, they can’t help you  come out of debt and will only worsen your financial condition. However, a card is necessary in our times when most modes of payment are electronic and carrying cash doesn’t make any sense.

Here are some of the alternatives to credit cards with bad credit that can actually help you to deal with your dilemma:

  • Secured credit cards – secured credit cards ask you to put a deposit equivalent to your credit limit but some banks give you 4 to 5 times credit limit of your deposit. Again, this depends on your credit score and a higher credit limit of 4 or 5 times usually means paying a very high APR.
  • A secured credit card with a reasonable interest rate is the best way to find a card for your transactions yet protecting you from overspending and getting back into financial trouble.Most secured credit cards offers lets you to choose your CD where you can enjoy earning interest.

The last option is a prepaid credit card but this is not exactly a good alternative to credit cards with bad credit if you are looking for a way to build your credit score.

However, they are still a great alternative to customers who want to deal with a card rather than cash. A prepaid credit card is your last resort if nothing else works for you but if a preparid card also does not work for you, and then you will have to take things slowly.

You need to open a bank account and wait for a year to get approved for credit cards for bad credit. 

Courtesy of CreditCardShoppe.com

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