Poor Credit Card
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.
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.
To receive a secured card, you must open and deposit money into an account. The credit limit on your card will be equal to the amount of your deposit, which is used to secure the card.
Secured cards work the same way as unsecured card-you will have monthly bills and an interest rate. If you close your account on good terms, your deposit, which earns interest for you, is fully refundable.
Both unsecured and secured credit cards report your activity to the major credit bureaus. A shopping card is another credit card choice.
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.
The last option is the prepaid debit card. This is similar to a bank card or checking account. You can deposit funds by direct deposit and pay your bills using a feature called bill pay.
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.
Those with poor credit scores see a reduced number of options when it comes to credit, but people have negative items removed from their credit reports every day.
You don't have to live with the high cost of bad credit, even if your credit report is damaged. By contacting the credit bureaus and having negative items removed, you won't have to wait seven years for them to be taken off of your report.
Even though you may have a low credit score, you do have credit card options. However, when choosing a card, be sure to investigate the associated fees and whether or not the card will report to all three of the major credit bureaus.
Unsecured cards offer you a line of credit and often come with 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.
To receive a secured card, you must open and deposit money into an account. The credit limit on your card will be equal to the amount of your deposit, which is used to secure the card.
Secured cards work the same way as unsecured card-you will have monthly bills and an interest rate. If you close your account on good terms, your deposit, which earns interest for you, is fully refundable.
Both unsecured and secured credit cards report your activity to the major credit bureaus. A shopping card is another credit card choice.
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.
The last option is the prepaid debit card. This is similar to a bank card or checking account. You can deposit funds by direct deposit and pay your bills using a feature called bill pay.
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.
Those with poor credit scores see a reduced number of options when it comes to credit, but people have negative items removed from their credit reports every day.
You don't have to live with the high cost of bad credit, even if your credit report is damaged. By contacting the credit bureaus and having negative items removed, you won't have to wait seven years for them to be taken off of your report.
Even though you may have a low credit score, you do have credit card options. However, when choosing a card, be sure to investigate the associated fees and whether or not the card will report to all three of the major credit bureaus.
About the Author:
For more about Easy Credit Cards or for a review of the Rush Card a popular prepaid credit card visit us. For a free credit consultation call 1-800-253-3735.
posted by Credit Counseling at
7:01 AM
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