Unsecured Credit Cards – A Look at their Value and How to Get Approved.

For people with bad credit, climbing back out of the hole can sometimes seem daunting at best, and impossible at worst. However, there are ways out, and believe it or not, one of the best ones is to get a credit card. Unfortunately, for people whose credit is in need of repair, this is often a difficult task. After all, the worse your credit, the less likely credit companies are to issue you a new card. So what’s a person to do when their credit is in need of repair?

The key is to apply for a card designed specifically for those looking to rebuild damaged credit, and there are quite a few options out there from a range of companies. These cards generally come in two varieties; secured, and unsecured. A secured card is a card in which the cardholder has to make a deposit with the issuing bank in the amount of their limit. So if you get a secured credit card with a $500 limit, you need to leave a $500 security deposit with the issuing bank, which you then get back once the account is closed out in good standing.

Unsecured cards are the standard type that most people think of when they think of credit cards. Unsecured cards require no deposit and give the holder access to credit up to whatever the predetermined limit is. Because of this, unsecured cards are often seen as the more desirable of the two types for people trying to get new credit cards to help repair their credit. However, unsecured cards do have some downsides, such as potentially higher upfront and monthly fees. Ultimately though, an unsecured card is what most people want. So if you’ve got bad credit, how do you go about getting approved for one?

If you’re able to wait it out and defer getting the unsecured card for a bit, then one great way is to start with a secured card and then switch over after you’ve demonstrated responsible use. Many companies, such as Capital One, offer guaranteed approval cards in both unsecured and secured types. It isn’t uncommon for people who can’t initially get an unsecured card to go for a guaranteed approval secured card, and then not long after find they’ve been approved for an unsecured card from the same issuer. Once the issuer has seen a history of responsible use with one of their secured cards, they’ll be far more likely, and often happy, to issue an unsecured card. Then it’s just a matter of keeping up with payments and making sure to use the credit responsibly.

Remember though, that unsecured cards designed for people with bad credit often have fees associated with them, both up-front on set-up and on a monthly basis, so if you’re looking to get an unsecured card as a way to get access to some quick money, think again! However, for those looking for a card to use it responsibly in order to make progress in rebuilding their credit, an unsecured card offers a way to repair your credit history without the burden of having to leave a large deposit with the issuing bank. Whichever type of card you decide to apply for, remember that having bad credit is not something that has to last forever, and it is possible to dig yourself out of the credit mess that so many people find themselves stuck in. Being accepted for a new unsecured credit card and building a strong history of on-time payments is one of the best ways to do it, so best of luck with your applications, and remember that you can fix your credit problems, no matter how daunting they seem.

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