Subprime Credit Card – Alternative for Bad Credit History

Fullscreen capture 2122013 100154 PMThe use credit card has been extremely popular among those who prefer convenience and ease. One of the most important purposes of having a credit card is to make purchases and pay bills without the hassle of going through long lines in the bank or the burden of carrying cash on your pocket. However, for those who have had bitter experience with bad credit, an alternative means of managing their finances is extremely important.

Subprime credit card is one of the options for people who are going through financial crisis. With a bad credit rating, it is almost impossible to get an approval for a new credit card account. This is one desperate measure for extremely desperate situation. Though people with bad credit history would think they are hopeless, they have options to explore.

Being buried in debt will definitely make one feel hopeless that there will be no way to qualify for a credit card account. Nevertheless, there is subprime credit card which can be used to fix credit scores and allow purchases.  The disadvantage for this bad credit remedy is the high interest rates and charges. This is a type of credit card which has meager credit limits and plagued with various extra fees as compared to other alternative credit card options.

The part of the financial sector which offers subprime credit card is in scrutiny because of somewhat predatory lending measures. This is quite a disadvantage for the borrower since the entire deal and the fees are not fully disclosed. There are financial firms which offer this type of credit card which have policies which would cause the interest rates to increase once the credit limit has been exceeded.

For those who would want to address their bad credit ratings, there are various options to explore rather than just stick with subprime credit card. There are credit cards for bad credit which can deliver similar convenience with the regular credit card account without the risk of being in debt.

Secured credit cards and prepaid credit cards are the most viable cure for bad credit ratings. This will never require credit verification which can be extremely stressful. Once credit card companies knew of your bad credit history, you will most likely be denied of the usual credit card account you have applied for. Both of these card alternatives can render ample ease and perks a regular credit card has.

A prepaid card will only require a deposit. The card can be used for shopping, paying bills and even doing groceries. It is important though that once the credit limit has been reached, another deposit shall be done to reset the credit limit again.

On the other hand, secured credit cards would require a “cash bond” to be deposited into an account. This will serve as a guarantee for the credit card account the bank might offer you. The money the credit holder has deposited will determine the credit limit. The best thing about secured credit cards is that these are not issued with high interest rates.

These are just two of the most efficient alternatives for subprime credit card. The practicality and risk-free nature of prepaid and secured credit cards is enough reason for people with bad credit to steer away from credit cards which offer too expensive interest rates.

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