Credit Cards For People With Bad Credit – Best Cards 2018


More than 30% of the American population has a score lower than 600 which is considered by banks as someone with “bad credit.” So if you have bad credit you are not alone. Having a bad credit record is more difficult is credit cards, since banks see you as a “higher risk.” The good news is that Miss Prism has researched and found for you the information of the best credit cards for people with bad credit.

The biggest difference of credit cards for people with bad credit is that they are of smaller amounts and higher interest. In this article we will present you with different options of the best credit cards with guarantee and unsecured credit cards as well as their respective advantages and disadvantages. This information will help you better understand your options and possible credit card terms for which you may apply.

Miss Prism likes to be transparent and honest with its readers, that’s why we try to offer you only options that we trust and that adhere to our standards. You can read our advertising disclosure and terms of use where we explain how we choose the companies we promote and how we earn money by promoting these services on our website.

A) Best Credit Cards With Warranty For People With Bad Credit:

A) Best Credit Cards With Warranty For People With Bad Credit:

One of the most common credit cards for people with bad credit are secured credit cards. These cards are different than normal credit cards as they require a deposit which is normally refundable from you to open the account. By making a deposit you have better chances of being accepted to these credit cards even if you have a bad credit record.

This type of cards are normally used for people with bad credit or without credit but who want to improve or establish their credit record , since these cards report your payment history to the 3 credit bureaus. By using these cards responsibly you will improve your credit score. By improving your credit score you can qualify for better credit cards (with and without collateral) with lower interest rates and many other types of loans that you would not qualify for having a low credit score.

Advantage:

  • Report your payment history to the 3 credit bureaus to help you improve your credit score if you pay on time.
  • They help people with bad credit or without credit to access a credit card.
  • Many secured cards will automatically check your account after your first few months to see if they can promote you to an unsecured credit card or if they can raise your credit limit (without needing a deposit).
  • Some cards have “cash back” programs which give you back a% of your purchase amount on certain qualifying purchases.
  • The deposits you make to open the card are refundable.
  • Apply is free.

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Disadvantages:

  • These cards require a refundable deposit to grant you the card.
  • Low credit limits.
  • You accrue interest on unpaid amounts (As with normal credit cards).
  • Some secured credit cards have annual costs (Try only to apply to cards without annual costs to get more out of your money).

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B) Best Unsecured Credit Cards for People with Bad Credit:

 B) Best Unsecured Credit Cards for People with Bad Credit:

Credit cards for people with bad credit without collateral are like normal credit cards that do not require a deposit to open them. As they do not require a deposit they are a bit more difficult to qualify with a bad credit, but not impossible. The biggest difference if you have bad credit is that the terms you apply are lower amounts and interests a little higher.

Although the terms are not the best these cards can be a good option as they give you access to a line of credit (without having to make a deposit) even if limited. Also these credit cards sometimes have even lower interest rates than personal loans for people with bad credit.

Advantage:

  • With this card there is no need to make a deposit to receive the credit card.
  • You can check if you pre-qualify without damaging your credit score.
  • Many cards automatically monitor your account every month to see if you qualify for an increase in your credit limit.
  • These credit cards are specifically designed for people with bad credit so you have better chances of being approved.
  • Apply is free.

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Disadvantages:

  • Low credit limits to start.
  • You accumulate interest on unpaid amounts (As with other credit cards).
  • Some unsecured credit cards have annual costs (Check the terms of the card for more information).
  • They do not give the best terms for people with bad credit (normally 14.99% -24.99% interest but varies by card and annual costs normally 0- $ 99 per year but varies per card).

“The editorial content on this page is not provided by any of the companies mentioned, has not been reviewed, approved or endorsed by any of these entities, opinions expressed in this article are solely those of the author.”

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