Unsecured credit cards are for people who have bad credit, but still good enough for limited unsecured credit lines. Most “bad credit” credit cards are unsecured credit cards. If your credit is good, you qualify for a card with a reasonable interest rate and no fees. If your credit is limited or bad, perhaps you will just have to consider an unsecured card. You can use an unsecured card to rebuild your credit. Here are some tips.
How to Improve Your Credit with an Unsecured Credit Card
There are many different bad credit unsecured credit cards, so it is important to find out as much as you can about each of those. Some credit card providers will ask for your personal information (address, social security number, etc.), to determine which type of credit card is best for you. Before you submit your application, see if the webpage is secured (if it is, the URL will have https://)
See if the credit card issuer sends reports to TransUnion, Experian and Equifax. These are the major credit bureaus.
If you make payments in time, and maintain the credit balance below the limits, a credit card can help you rebuild your credit.
If you need to improve your credit, you can get a credit card, but in most cases, these come with fees. One-time application fee is sometimes very high. You will probably have to pay one-time processing fee and annual fee. Monthly processing fee usually goes from 5 to 15 USD.
When choosing one of these cards, you need to check certain things, like the credit card issuer’s reputation. This is probably the most important thing to check. It is not too hard to become a credit card issuer. You need to get as much information as you can, and see if the card issuer has a decent reputation.
There have to be credit card reports to Equifax, TransUnion and Experian. This is important, because that is the only way to rebuild your credit.
One of the best options for people with bad credit is to use the Orchard Back Classic MasterCard. You can get a secured or unsecured credit card, depending on your credit. Orchard Bank Visa Classic can help you rebuild your credit; it is accepted worldwide, and you can use it to buy online. You can always access your account and update your personal information.
UPside Visa Prepaid Card: No activation fee, designed for people with bad credit, and low monthly fees (if you load 500 USD each month); you can use it to pay your bills and rent.
Green Dot Prepaid Debit Card: no monthly fee (if you have at least thirty purchases per month), no transaction fees for purchases in theU.S., no minimum balance is required and no penalty fees.