Bad credit credit cards or bad credit cards are the answer when you have poor credit and would like to get credit cards. Since there are lots of credit card offers in the market the challenge is how to find the best offer.
In order to get the best bad credit card it’s important that you understand the concept, analyze the offers, and know how to apply for a credit card of your preference. This article shows you how to select a bad credit card that best suits your needs.
What are Bad Credit Credit Cards?
Bad credit credit cards are credit cards for people with bad credit ratings. These cards offer opportunities for the people to use credit cards as well as to improve their credit ratings. Bad credit cards also act as a training ground for the people to build new spending habits.
Bad credit cards are also called secured credit cards. The credit cards are secured cards because issuers need consumers to open up an account and keep up some cash balance in the account. This is to protect the issuers from non-payments of defaulted credit card holders.
Credit card companies will pay interest on the balance in a consumer’s account. And the credit limit on the bad credit card is determined by the 50-100% of cash balance in the account. So, card holders actually draw their own money and it’s not a surprise that these cards are also called debit cards.
Bad Credit Credit Card Offers
If you’re looking for a suitable bad credit card, you’ll find plenty of credit card offers in the market. To find a suitable credit card you can analyze some offers using the following selection criteria:
- the minimum balance in the bank account,
- the application fees and/or other charges,
- the credit limit or the allowable spending limit of your bank account balance, and
- the rate of interest of the balance in your bank account.
A good credit card offer would only need a small amount of deposit or minimum bank balance. It would give you guaranteed or instant approval and have no fee or charges associated with it. In addition, it would offer a good interest rate and have a credit limit within 90-100% of the bank balance.
Apply for Bad Credit Credit Cards
Bad credit cards are usually easier to get because banks or credit card issuers are secured by the capital that you will be charging against. Even though the application process of a bad credit card is simple, it is usually costlier than an unsecured credit card.
So, before applying for the card, find out the total fees and whether it would be refunded if your bad credit card application is denied.
Are Bad Credit Credit Cards Right for You?
If you have bad credit you don’t have a lot of choices. You cannot get unsecured credit cards that are offered only to the borrowers with a good credit history. In this situation a bad credit credit card offers a help. The plastic money can let you enjoy the benefits of credit cards and at the same time help improve your credit rating.