Too many assume that in order to get a bad credit credit card they will have to settle for a secured card, but in most cases, that’s just not the case. You can find unsecured credit cards for bad credit if you know how to search for them.
There are distinct benefits to an unsecured card, but you also need to know how to distinguish the best unsecured credit card from among the other offers. Below, we’ll look at why to get an unsecured card, which one to get, and how to find your best offer.
Why Unsecured Credit Cards For Bad Credit?
Getting a secured card has many drawbacks. First of all, you have to tie up hundreds of dollars that could be in your savings or checking account. Second, it is a lot more hassle to go through the setup process when you have to submit a security deposit. Third, your credit limit is tied to your deposit, and that may not be enough room to efficiently manage your finances.
An unsecured credit card, by contrast, is quicker and simpler to apply for and set up. You may be able to get a higher credit limit, but even if not, at least you don’t have to let the credit card company hold your money for months of years on end.
It’s really not surprising, then, that most people dislike secured cards. They have a place, and some don’t mind them. But those who dislike them tend to dislike them a lot. Luckily, there are other options!
Which Unsecured Credit Card?
It’s easy to say “I want an unsecured credit card,” but the truth is, there are major factors that separate one such offer from another. What other features should you be looking for when you have damaged credit? Here are the top ten:
- No annual fee. Alternatively, look for the lowest annual fee possible or a company that will waive it “if you complain.”
- Ability to avoid all interest. You should not have to pay interest if you pay off your balance in full frequently enough. You should get 23 to 28 days to do that each cycle.
- Reasonable late fees. All credit cards have late fees, but pay attention and choose the offer with the lowest such fees – just in case!
- Watch out for “extra” fees. Some cards add unusual fees that don’t even exist for most credit cards. Avoid this if at all possible.
- Lower APR. Interest rates are bound to be higher with bad credit cards, but you can still find and choose the lowest APR available, justas you would want to do with an installment loan.
- Introductory rates. Sometimes, you can still get low or zero interest as an introductory rate with unsecured bad credit credit cards.
- No foreign transaction fee. If you travel abroad a lot or order from overseas, this is a nice addition.
- ATM access. You can expect limits on cash withdrawals, but they should be reasonable. And you need a company whose cards are accepted at most ATMs.
- Higher credit limit. Look for a card with a reasonably workable credit limit and the opportunity for it to be gradually raised as you continue to make your payments on time.
- Perks. Even bad credit cards can have cash back rewards or a points system. Get it if you can.
How Can I Find My Best Offer?
Now that we’ve laid out the reason to seek an unsecured card and how to select the best one, the question arises – how can I find that ideal card?
Bonsai Finance steps in here to make it easy. We give you access to high-tech search engines and other tools that make your search shorter, more successful, and less stressful.
Visit Bonsai Finance today to find your best offers for unsecured credit cards for bad credit!
Here are some other articles you might enjoy:
9 Things You Should Know Before Taking Out Credit Card Insurance
7 Ways Credit Card Verification Can Help You Stay Safe Online