How to Get Unsecured Credit Cards for Bad Credit
Many are now rushing to get a charge card because of financial concerns and it might be time for you to get one even with a low FICO too. Secured card companies nowadays are willing to give accounts to almost anybody, even to people with a bad history of repayment. Their reasoning that they will make money whether you pay their bills on time or not, since late payers tend to pay higher interest rates and incur late fees. It is rare for people to simply not pay off their balances and attempt to disappear. So from the lenders standpoint there is little risk of extending loans for bad credit.
Use caution before you get a new revolving account. It might be tempting to sign up if there is absolutely no rejection, but if you do not use the card or cannot pay your bills, your borrowing might end up costing you more in the long run. Be selective when choosing which offer you apply to and think carefully before signing up.
Which Programs Will Work With a Bad History?
"There are amazing advantages to having a good credit rating..."
There are many different types of offers and issuers available online with varying annual fees, interest and terms, including:
- Secured Cards
- Unsecured Cards
- Store Issued Cards
- Visa, Mastercard, Etc.
- Rewards Programs
There are still advantages to a good financial past, significant benefits, and better rates. Many companies offer premium gold or platinum visa or mastercard with no annual fees, 0% APR and a higher account limit but this should not stop you from being able to able to get something.
More than ever, issuers are offering loans to high risk borrowers making it possible for you to get approved. They are willing to take this risk in exchange for an annual fee and a low APR. Some companies will check your job history, but many more will rely on the fees to protect their investment in you rather than past records. Rather than simply giving up, or only applying to programs for which you don't qualify, it is a good idea when you have a poor financial history to use these bad credit credit cards to make timely payments on modest, regular purchases to rebuild. Manage debt responsibly. This will help you reestablish themselves financially, which takes time, but will open up better options later on.
Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. With identity theft occurring more frequently, chipped cards are becoming required among retailers and more common than not. Further information on avoiding charge card fraud and choosing wisely is provided by the FTC. These smart chips hold information to prevent cloning and fraud and are now more commonly available than ever before. If your chip is disabled or begins to malfunction, the company is automatically notified so that they can give the needed attention.
What About Purchase Rewards?
Another popular program available today are cards with rewards for purchases. Many consumers enjoy accumulating points on what they buy accruing discounts and rewards which can add up to real value. It can take some time before you will be able to receive free items, and it is not such a good idea to make extra purchases just to earn more points, but many feel that with a little planning and responsibility they can put these programs to their benefit with their regular shopping..