Almost everyone has struggled with credit at one time or another. Whether your credit score went south because you lost your job, or you just overextended yourself, you quickly learned that without credit things can be tough. If you have difficulty qualifying for new credit and it's an ongoing battle to rebuild your financial reputation. It can be a full time job to rebuild your credit history.
There are several credit cards that have been specifically designed to help those with bad credit. However, some cards for bad credit offer more advantages than others so it pays to do a little research before you decide which card you would want to use.
The Best Credit Cards for Bad Credit:
There are two different types of credit cards that can be used to rebuild your credit: secured and unsecured. Secured credit cards are issued when you use your own cash to ensure that the issuing institution doesn't lose any money if you default. Unsecured cards are closer to a traditional credit card issued by a bank or financial institution. Both secured and unsecured cards have pros and cons to consider.
Credit One Bank Unsecured Visa:
This card is highly regarded by many people with bad credit, mainly because it doesn't require a security deposit, but it also offers reward points for certain purchases you might make. They are also generous enough so that once you've made a few consistent and timely payments you may earn a credit line increase. They also report to credit companies on a monthly basis, so your credit score will increase rapidly rather than once a year like other companies do.
Milestone Gold MasterCard:
Also an unsecured line of credit, this card has an easy and quick pre-qualification process. Even those with bankruptcies on their credit report can be eligible for this card. Those who use this card can access their account online so they can check their status at any time.
Indigo Platinum MasterCard:
This card has easy qualification requirements that don't include any heavy search of your credit report. Once approved, customers get free account management services and are fully protected against identity theft and fraud.
Guidelines for Applying for Credit Cards for Bad Credit:
There are many companies that will issue you a credit card even with bad credit but you need to exercise caution before you apply. Be prepared for the application process by knowing your credit score, and make sure that you look at the fine print. Some credit card companies offer great cards but the high interest rates could easily put you back in the hole without warning. Make sure that you know exactly what you need in a card and that you can afford what they are offering. Avoid going for those cards that offer great rewards and instead look for those with more favorable interest rates. The more you know about how these types of credit cards work the less chance of you falling into a financial trap once again. While getting an unsecured credit card may be a dream come true, also consider the secured credit card route for a wider range of options.