Bad Credit Doesn't Rule Out Unsecured Credit Cards

[ Bookmark this page! ] [ get HTML Version ]

<1article>

<2article>

Bad Credit Doesn't Rule Out Unsecured Credit Cards
Many people believe that because of their bad credit, unsecured credit cards are not available to them. While it may be more difficult, there are options for people with bad credit who want an unsecured credit card to build their credit or have available for use in an emergency. While a secured credit card is the most commonly recommended option for people with bad credit, unsecured credit cards ARE available - even for those with the worst credit.

Bad Credit: Unsecured Credit Cards vs. Secured Credit Cards

One of the easiest ways to get a credit card when you have bad credit is to opt for a secured credit card. With a secured credit card, you deposit money in a bank designated by the credit card company to serve as a 'security deposit' - an assurance that they'll get their money if you default on payments. Depending on the lender, that deposit might be equal to your desired credit limit, or slightly higher or lower. A security deposit of $300, for instance, might get you a $150 line of credit with one company, a $300 line of credit with another, and a $400 one with yet a third. The interest rate is generally competitive, since the company has a guarantee of getting its money if you don't make payments.

An unsecured credit card requires no security deposit. A bad credit unsecured credit card will often have either a high APR (annual percentage rate), high fees, or both. How do the two stack up against each other? Here's a comparison from two actual credit card offers that are sitting on my desk as I write:

Secured Credit Card
Security Deposit: $250
Annual Fee: $35
Setup Fee: $35
APR: 15.40%
Credit Limit Increases: $100 increments, each require $100 deposit
Bottom Line: It will cost you $370 to maintain a $250 credit limit for the first year, with at least $250 up front, at an APR of 15.40%. You'll have $170 available credit upon receipt of your card. You'll have to put up an additional $100 every time you want to increase your credit limit.

Bad Credit Unsecured Credit Card
Annual Fee: $48
Setup Fee: $29
Participation Fee: $72 (annual, billed at $6 monthly)
Program Fee: $95 (one time fee)
APR: 9.9%
Credit Limit Increases: $25 (per increase of $100, at their discretion)
Bottom line: It will cost you $244 for the first year, all of it billed to your credit card on your first statement, to maintain a $250 credit limit with an APR of 9.9%. You'll have $72 credit available upon receipt of your card.

In the long run, while a bad credit unsecured credit card may cost you more, you won't be tying up your money up front. Either card will help repair your credit as you make payments on time and regularly, but the unsecured card has an APR that's almost 5% lower. You're the only one who can decide which is the better option for you - but it makes sense to weigh all your options before you decide that your only way to have a credit card is with a security deposit.

Bookmark this page | Search this site | E-mail to a Friend


index
bad credit auto loan
bad credit auto loans
bad credit car loan
bad credit home loan
bad credit home mortgage loan
bad credit loan
bad credit loans
bad credit mortgage
bad credit mortgage loans
bad credit mortgage refinance
bad credit mortgages
bad credit payday loans
bad credit unsecured credit cards
car loans bad credit
credit cards bad credit
erase bad credit
fix bad credit
home equity loan bad credit
home loans bad credit
home mortgage for bad credit
personal loans bad credit
bad credit refinance
bad credit repair
bad credit debt consolidation loans




Top rated articles for bad credit unsecured credit cards
1. Your 3 worst debt consolidation moves
2. Credit counseling program
3. Financial Advice Online
4. Understanding the Process of Credit Counseling
5. Get Out of Debt Free with a Consumer Credit Counseling Service

Editors picks: bad credit unsecured credit cards

1. Best Debt Consolidation Company
2. How to deal with credit card debt
3. Debt Relief - Online Trust Deeds
4. Get Out of Debt or File for Bankrupcy
5. Fast Debt Consolidation Loan
6. Debt consolidation - Your best way out
7. Buried in debt - Finding your way out

Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Bad Credit Doesn't Rule Out Unsecured Credit Cards
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Add website or submit URL link of your site to 1000 free directory