Secured Bad Credit Credit Cards

People with bad credit or poor credit are often face difficulties in obtaining a credit card. Bad credit problem can be caused due to a number of situations.

The fact is indeed true that their choices are limited when it comes to credit cards but, credit card issuers are increasingly offering financial products that specially cater to bad credit people. The credit card choices available to bad credit people allow them to rebuild their credit history. In this article we take a look at each one of them. Financial products that help bad credit people are prepaid credit cards or debit cards, secured bad credit cards, unsecured bad credit cards. Prepaid or debit cards: These are the easiest option available for bad credit people. All they have to do is to deposit a money and a prepaid card is issued.

There are no verifications, no employment requirements, no credit checks, and the approval is instant. This card has the borrowing or buying capacity equivalent to the funds deposited. Some prepaid card issuers report to various credit rating agencies, thus it helps in rebuilding your credit history. The good thing with prepaid credit card is that it promotes financial discipline. Secured bad credit credit cards. Generally, secured bad credit, offered to homeowners cards help one rebuild his credit history. These credit cards are issued to bad credit people who can offer a collateral.

The interest rates and borrowing limits on these credit cards are good and favorable for bad credit people. As the credit card issuer gains confidence with you it can increase your credit limit. Secured credit cards can also be linked to a savings account in which case it will have a credit limit of some percentage of your savings or money in your account. Again, if you control your finances and spending, repay on time and do not default your credit history will improve. These credit cards have high fees, which makes them a costly proposition to own. Unsecured bad credit credit cards. But, the bad credit people have limited choices.

This is the only option that remains. If a person with bad credit doesn' t have anything to offer as collateral or is unable to buy a prepaid or debit card. However, on a positive note, this unsecured bad credit credit card offers the person a chance to rebuild his credit history. But if they don' t learn lessons from their existing situation and do not improve things will get worse with time and become uncontrollable. So, the options are there for bad credit people to have a credit card.