1. Bad Credit Unsecured Credit Cards
If you find that you have made some mistakes and now have bad credit, you may have given up on ever
getting an unsecured credit card. The truth is that bad credit and bankruptcy do not necessarily deprive a
person from obtaining a credit card. There are unsecured credit cards out there that are designed
especially for people with bad credit who have also had difficulties being approved for a major credit card.
What is an Unsecured Credit Card ? The easiest way to explain it is to first define a secured credit card.
A secured credit card is one where you deposit money into an account that is tied to the card. You can
use the card to buy items up to the amount of money that is deposited in that account before your credit
card cannot be used anymore.
An unsecured credit card is the exact opposite. They offer a credit line to people based on their credit
history and then allow charging up to that credit limit. They are generally given to people with good credit
histories and a past demonstration of being able to pay their bills in a timely manner without over-
extending their credit.
So how can people with bad credit get an unsecured credit card? Because there are companies out
there that specializes in giving unsecured credit cards to people with bad credit. Their thought is that even
people with bad credit deserve the chance to rebuild their credit somehow. For example, the Imagine card
from Master Card guarantees that all applications are accepted.
How can they do this? The answer is actually quite obvious if you really think about it. Getting an
unsecured credit card with bad credit is expensive and your credit limits are quite low. With the Imagine
Card that we mentioned above, you will either receive a card with a $70 or a $300 credit limit and you’ll
have to pay an annual fee as high as $155!
However, let’s think about what having an unsecured credit card really means to you if you have bad
credit. First, you are getting a credit line with a “real” credit card that can help build your credit. As you
pay off your balance every month, you are building a solid credit history and your credit line could be
increased incrementally. The annual fees might actually be dropped as well eventually.
You have to remember, though, that you are trying to rebuild your credit and having an unsecured credit
card requires a certain amount of self-control, so you’ll need to have a plan on what to do if you are
tempted to over-spend. Just make timely payments and your unsecured credit card could erase your bad
credit eventually and set you on the road toward good credit!
Troy Easley is a credit restoration expert with MyCityCredit.com. Mycitycredit.com specializing in credit
restoration and boosting credit scores. You can find him on the web at MyCityCredit.com