Bad Credit Credit Cards
There are many bad credit credit cards on the market today. For years, credit card lenders have left the market open for people with bad credit by offering credit cards with special features designed exclusively for customers whose credit needs repairing or rebuilding. The fact is that obtaining a credit card, and making regular payments, can make a huge impact on your credit score. As long as you play by the rules -- pay above the minimum, carry very little debt from month to month, refuse to charge your full credit limit -- using a credit card can improve your credit history faster than almost any other financial move.
In recent years, with the credit crunch and the global economic downturn, even more bad credit credit cards have popped up -- and we're not just talking about secured credit cards or cards which are issued on the basis of collateral. There are unsecured credit cards for people with bad credit, and some of them are well worth looking into. If you've had to file bankruptcy, recently lost a job and found yourself in debt, or just need to open a credit card in order to rebuild your credit score, one of these unsecured credit cards for people with bad credit will be perfect for you.
Unsecured Cards for People with Bad Credit
A secured credit card, tied to a savings account and featuring serious limitations on your credit activity, is not for everyone. For starters, your credit limit with almost all secured cards will be around $5,000. Also, many secured credit cards neglect to report your credit activity to all three major credit bureaus -- how are you supposed to build credit without the credit bureaus being aware of your activity? For many people, obtaining an unsecured bad credit credit card is the only answer. Here are the best available, according to their terms and conditions.
Premier SOAR Mastercard
This Mastercard offered by First Premier Bank is aimed at people with "all credit types" according to the company's website. Whereas even the best unsecured credit cards for people with bad credit report to three credit bureaus, the SOAR Mastercard guarantees monthly reporting to four major credit bureaus. This means you can be sure that positive activity with your Premier SOAR Mastercard will lead to a boost to your credit score. This card is a branded Mastercard, giving you the convenience of spending anywhere Mastercard is accepted. With a decent 9.9% APR and a low $48 annual fee, you may be ready to jump on this card's bandwagon. However, there are a few downsides. A $7 card activity fee will be charged every month -- that takes $84 a year right out of your pocket. Besides that, there are not one but two activation fees -- an industry standard $29 one time fee, and a one time "program fee" that is a staggering $95. Between the annual fee, the activity fee, and the activation fees, you are out $256 before you ever swipe the card. I'm not saying that Premier is preying on people with poor credit, but you should be aware of the hefty fees attached to this otherwise attractive bad credit credit card.
Orchard Bank Classic Mastercard
Unlike the Premier card, the Orchard Bank Classic Mastercard won't drown you with fees and finance charges. You may not be "guaranteed acceptance" with this card, as you are with secured credit cards, but Orchard Bank advertises their willingness to work with people who have bad credit, and depending on your individual credit situation, you are likely to be approved for this Mastercard. Their rather hefty 14.9% interest rate is buffered by low fees and good conditions. You will pay a one-time fee of $49 for "account processing" (read 'activation fee'), and a super low $49 annual fee. That's $98 to get your credit card activated -- a low number in the world of unsecured credit cards for people with bad credit. There's more good news -- you may find that you qualify for a special 0% introductory APR based on your creditworthiness. If you've spent a little time improving your bad credit, Orchard may decide to reward your efforts with no interest for up to 6 months. Of course, after the Introductory period ends, a variable interest rate will aply -- currently between 9.90% and 15.99%. That low annual fee is also subject to change due to your credit situation. The annual fee will fluctuate between $0 and $49, depending on your creditworthiness. Orchard Bank looks like a company dedicated to their customers with a spotty credit history.
Total Visa
If you're looking for an unsecured credit card that will give you a decision instantly, check out Total Visa. Their customer service department will give you an instant online decision when you apply for their card. This is another bad credit credit card with a relatively high APR and what seems like a low fee system -- just $49 to activate your card, and a $49 annual fee. However, Total Visa also charges that mysterious $95 "program fee", as well as a monthly card fee of $7. If you can get past the hefty fee schedule, you'll find that Total Visa reports to three major credit bureaus, and offers their customers a Zero Liability program for any fraudulent card activity. Unique to bad credit credit cards, the Total Visa card gives you absolutely free online access to your account -- other unsecured credit cards charge monthly fees for online access, or even fees for each time you access your account online.
When choosing one of these bad credit credit cards, keep a few things in mind. If you are planning on applying for a card not found on the above list, watch out for credit card lenders who prey on people with bad credit. A great way to ferret out these types of lenders is to look at their fees and interest rates -- if a credit card you're applying for requires an "insurance policy" or huge annual fee (anything above $75), you can be sure they're in it for the money. The best way to tell if a credit card lender has your best interest at heart is to call their customer service department before you apply. Ask any and all questions you have, including questions about hidden fees, transaction requirements, or reports to credit bureaus. There are a pile of unsecured credit cards for people with bad credit. The key is to sort through the pile and find the card that works for you.