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Bad Credit Credit Cards

When it comes to bad credit credit cards there are certainly no shortage of choices. Consumers can apply for unsecured, secured prepaid and debit cards depending upon which offers interest them. Take your time to look over the following offers to see if any of them meet your financial needs.

Let’s take a look to see exactly how these different types of cards work. Hopefully we will give you some solid insights which will help you decide which one is best for you. While there are are some similarities between these credit card offers, there are also some substantial differences as well.

Before we begin let us clear up a common mistake that we too are guilty of. When we label something as a credit card that means that credit is actually extended through the issuer and the cardholder is responsible for fulfilling the terms of the agreement and repaying the principal and interest that has accrued.

That means that prepaid cards and debit cards are not in fact credit cards at all because they do not extend any credit but rather the account holder accesses funds that they themselves have deposited into an account. It’s their money. Secured and unsecured credit cards, however, are in fact by definition, credit cards meaning the cardholder is allowed to use the issuers money.

An unsecured credit card is pretty much the typical card that we have grown accustomed to here in the United States. An applicant fills out a form entering their personal information and a bank or credit card issuer then checks to see if they have a responsible credit rating that deserves a line of credit.

A secured credit card most closely fits the definition of bad credit credit cards. They allow the account holder to deposit funds into an account which is then used as collateral against an equal amount of money that is issued to them in the form of credit.

I realize that doesn’t make much sense but the whole point of a secured credit card is to establish, or reestablish as the case may be, a strong enough credit rating that the line of credit is increased through responsible use of the card.

Ultimately, the goal would be to build up your credit rating enough so that you can get approved for an unsecured credit card. Not only will you be able to get an unsecured credit card but then you’ll also be able to, hopefully, get approved for auto loans, mortgages, personal loans and so forth.

Debit cards allow the individual to use their card in just about any way credit card transactions are accepted including in retail stores, online and over the phone. The cardholder can access 100% of the funds that they deposit and can get cash through ATMs nationwide.

So as you can see there are plenty of bad credit credit cards, for lack of a better term. They are plentiful and there are many options to consider. Carefully read over the terms, features and conditions of the offers listed here and apply for the one that best suit your financial needs.

Related Information:

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