Credit Cards With Bad Credit

Credit Cards With Bad Credit


If you have less than perfect credit, you may have seen ads

promising you a credit card regardless of your credit history

or job status. Most of these ads are actually for a secured

credit card, which can be a great way to rebuild your credit.

Your credit may need rebuilding if you have a history of

unpaid credit card bills, bankruptcy, repossession, or divorce.

However, you need to be aware that there are scams out there

promising a credit card for people with bad credit but not

delivering.

A Secured Credit Card

Many people do not know the difference between a secured credit

card and an unsecured card. The main difference lies in where

the money comes from when you make purchases. An unsecured

credit card is the standard card issued by most lenders. You

borrow money to pay for your products and services and then

you are allowed to pay the lender back with interest via

credit card bills. A secured credit card for people with bad

credit requires an initial deposit to set you. You deposit

anywhere from two hundred to two thousand dollars into an

account before making any purchases. What you buy is paid

for using the money in your account. So you have control of

your credit limit with how much cash you put up front.

Unfortunately, in order to open an account for a secured credit

card you must have the hundreds, or even thousands of dollars,

it takes to secure the credit. This up-front cost makes it a

prohibitive credit card for people with bad credit, who are

usually on a very strict budget as their debt takes up most

of their extra income. Along with the initial deposit, you

might have to pay application or set-up fees, and you could

be charged a fee when you make future deposits to your account

in order to raise your credit limit. These fees show up on

your credit card bills.



Credit Card Scams

There are legitimate promotions for a secured credit card out

there and you may find several on the internet if you search

reputable banking institutions for their offers. However,

some companies try to lure consumers into calling a false

number. The phone number listed in the ad is not toll- free,

but is a 900 number that you will be billed for using. The

scammers might lead you to believe that you can get the secured

credit card as soon as you call the listed number. In these

false ads, there is usually no mention of set-up fees, initial

deposit amounts, eligibility requirements, or credit card

bills, which will be larger than normal due to annual fees

and high interest.

How To Spot A Scam

If someone offers you easy credit with no qualifications to get

a credit card, this person or company is probably not telling

you the whole truth. Any reputable lender must check your

credit report before offering you a line of credit. This

precaution is especially true when providing a credit card

for people with bad credit. Also beware of calling 900 numbers.

These numbers are not set up to provide you with a service.

They are set up to make the company a profit and your phone

bill could show a charge up to $50 for a few minutes.



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