Unsecured credit cards for no credit

Things Need to Know About Bad-Credit Cards

These days, credit cards have become a necessity as it provides people with spending power even
if they cannot really have all the money they require. Sadly a lot of individuals do spend to much
that they turn out indebted, not able to purchase their expenses and eventually not able to get
credit cards anymore. People can indeed recover and repay all their debt but once that is done,
getting bank cards to get started on their debt-free life would become a near-impossible feat.
Thankfully, such people still have hope in the form of bad-credit cards.

Bad-credit cards are charge cards that individuals with bad credit histories can apply so that they
can get the same benefits as regular cards holders - have the ability too rent cars, book hotels,
shop online - and the majority of all, rebuild their credit ratings so that they can get normal credit
cards. The downside with unsecured credit cards for no credit however, is that their interests
rates could be higher, they might have higher signing up for and twelve-monthly fees, or they
might require guarantee. But such are prices that folks with bad credit are willing to pay because
they do understand the value of credit cards in today's society.

There are various varieties of credit cards for people with bad credit however they can mainly be
categorized as prepaid cards, secured cards and unsecured playing cards.

Prepaid Bad-Credit Cards - these cards are actually just debit cards specifically crafted to people
with bad credit. To get one, you merely need to open a bank account and deposit at least the
minimum required money. This amount would function as your "credit limit". Each time you
purchase with your card, money is subtracted from your account and if your money works out,
you will not be able to use the card unless you deposit funds again.

Nevertheless, this is not in any way a credit card because you are not really borrowing money,
and therefore it will not really improve your credit rating. Nevertheless it provides people with
the conveniences of credit cards even if they are not able to apply for a real one due to their bad
credit.

Secured Bad-Credit Cards - these are as good as credit cards, however to apply for one, you
would need to open a savings account, the money deposited by which would be secured as a
collateral by the giving bank. The borrowing limit is decided by the amount deposited, or
sometimes a little more than that to allow the cardholder some allowance. If the cardholder fails
to pay, the loan provider may take your hands on the money in the savings.

Like other bad-credit playing cards, the interest levels and other fees are bound to be higher than
regular credit cards. Also, some banks may well not report such accounts to credit reporting
agencies so it is important to ensure that the bank will submit such reports if the purpose is to
increase the cardholder's credit score.

Unsecured Bad-Credit Cards - these work like regular credit cards however the fees and interest
levels are considerably higher than normal cards. A cardholder may start with a low credit limit,
around $250, which will increase little by little if the bank account is kept well.