Having bad credit history–or zero credit history for some–doesn’t mean you don’t have access to credit cards. There are secured and unsecured credit cards available that you can get easily approved for even if you have poor credit standing. You just need to do your research.
Safe to go unsecured?
With bad credit, you may have the option available to apply for an unsecured credit card. But what is the difference between a secured and an unsecured credit? Secured credit means you have some cash you have put up in advance and that has determined amount of money on it that you can spend on your credit card. If you don’t pay a secured card, the money you put up is kept. Unsecured means credit is extended to you without collateral, meaning you can charge up to the limit and be billed at the end of the month.
Some examples of unsecured credit cards for people with bad credit include Matrix Hybrid, Applied Bank, Cerulean, and many more. These cards, however, usually come with expensive annual fees. Matrix Discover, for example, has a $75 annual fee, and this card has fees that rise after the first year. However, you are going to have to contend with this if you want to build up your credit and eventually move to a secure card. There really aren’t very good unsecured option for those with bad credit.
A couple other options
It may be better to go with a secure card if you have bad credit. An affordable option is the US Bank Harley-Davidson Secured card. It doesn’t have an annual fee and even earns you rewards on all your purchases that can be used for Harley Davidson merchandise. The Capital One Secured Card is also a good option, as you can get a higher credit limit than your initial deposit, and you don’t have to pay for credit line increases.
As your credit improves, your options will improve as well. Better rates and lower fees for unsecured cards will become more readily available. Just keep using your credit responsibly.
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