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Bad Credit Credit Cards

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					Bad Credit Credit Cards

If you have had credit issues in the past, you know that rebuilding your
credit can be extremely difficult. You need credit to reestablish a good
payment history, but with bad credit it is nearly impossible to be
approved for a new credit card. While many cards with great offers and
helpful incentives will turn up their nose to those without a 700 or
higher credit score, there are some cards that cater to those who haven't
had the best credit history, including some MasterCard and Visa cards.

Low Limits

Cards being targeted toward those with bad credit tend to have low
limits, most fewer than five hundred dollars. This gives the consumer a
chance to show a good payment record, without the risk of falling into
larger debt. The credit companies protect themselves from those with bad
credit histories by offering these lower limits.

High Interest Rates and Fees

"Bad credit" credit cards also tend to have relatively high interest
rates. While most regular cards offer interest rates of roughly 13%, "bad
credit" cards can have varying APR's up to and above 25%. On top of these
high interest rates, these cards often have unavoidable annual fees. Some
annual rates can be waived for some period of time or when certain
criteria are met, but "bad credit" cards do not usually give that option.

Specific Cards

One of the better companies for a mild annual percentage rate, and some
nice extra features is Citi. Many of the Citi cards are designed for
people with limited or poor credit history. They often include cash back
bonus that rival higher quality cards. These cards often carry an APR of
around 23%, and occasionally have an annual fee as low as $25.

Probably not as well known as Citi, Orchard Bank offers great features
for someone looking to budget and improve their credit score. One of
these features is text and email updates on spending and payment due
dates. A drawback is that Orchard Bank cards do not offer cash back
bonuses, and have annual fees as high as $60. The percentage rate on
these cards is about 25%.

Several other companies offer "bad credit" credit cards, and they are all
different just like with a typical credit card. They have different fees
and terms and it is best to compare the rates and services and find the
one that fits your needs.

Watch Out for Imitations

Among actual credit cards, there is a trend of prepaid cards targeted
toward the unbankable or those with poor credit. They are often branded
with major credit company logo's giving consumers the false sense that
these are actual cards and not a debit card or prepaid card. The prepaid
cards require no credit approval since you are only allowed to spend the
money you deposit. They act more like a bank or debit card in that you
deposit money to the card and can only spend the money you have
available. There is no line of credit given, but prepaid cards often
charge you fees to access your own money. While these cards can help in
not carrying around cash, budgeting, and paying online, they will not
benefit your credit score in any way.

Debra Lee Dragon is a freelance writer providing content for
CardGuys.com- a site that helps consumers find the best bad credit credit
cards and balance transfer offers. Find and apply for a credit card that
best meets your needs, today!

				
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