Bad Credit, Unsecured Credit Cards: These Terms Can Be Confusing
If You Have Bad Credit, Unsecured Credit Cards Might or Might Not Be an Option
If you have bad credit, unsecured credit cards can be difficult to qualify for. Most consumers enjoy the benefits of having an unsecured credit card. It is certainly nice not to have to put up money just for the convenience of having a credit card. For consumers with bad credit, unsecured credit cards are sometimes still the most sought after type.
An Unsecured Card Isn't Always An Option
If you really want or need a credit card and have bad credit, unsecured credit cards might not be an option for you until your credit rating improves. In that case, your only choice will be to get a secured credit card. Take a look at all of your available options before applying, though. You will want to limit the number of credit card inquiries that you have on your credit report.
Treading Murky Waters
There are no hard and fast rules that will definitely let you know in advance before applying whether or not with your bad credit, unsecured credit cards will be within your reach. There are certain factors that impact your FICO score which can decrease the likelihood that you will qualify for certain credit card offers. Having a high debt to credit limit ratio can impact the types of credit cards you qualify for.
Comparison Shopping
You might want to read our previous article on how to compare credit cards. For consumers with bad credit, unsecured credit cards can be found at CreditCards.com, and that website displays what type of credit rating you will likely need in order to qualify for each offer. Keep this in mind before applying.
A secured credit card can provide you with a safe way to reestablish and build your credit rating, so take advantage of that option if it is all you can qualify for. For consumers with bad credit, unsecured credit cards can be within reach in a year or two after you have improved your credit rating, so remember to make your payments on time and only charge what you absolutely need to.