It may be you have had some financial problems in the past and aren’t sure if you can get approved for a credit card that doesn’t require a deposit.
But the chances are that you probably can. There are many offers for unsecured credit cards for bad credit applicants on the market today. In fact, you will likely have a number of different options.
About Secured Credit Cards
There are a lot of offers out there for secured credit cards, and they vary greatly. Most will require a deposit equal to your credit line, though depending on your credit score, you might get a credit line two or three times the size of the deposit.
And many times, you can earn credit line increases or graduate from a secured to an unsecured card by making a specified number of on-time monthly payments.
However, many still don’t want to tie up hundreds of dollars in cash in order to get accepted on a credit card application. What are the other options?
Unsecured Credit Cards for bad credit
Some companies will allow you an unsecured credit card for bad credit users, but it may depend on precisely how bad your credit history is. Other companies may not care about the exact credit score and may not even run a credit check.
If you qualify for an unsecured card, you still have to evaluate the other factors to decide which card to apply for. For example, carefully consider the following:
- The APR. This is the most obvious factor that many think of, though not necessarily the most important one. If you can avoid paying interest, after all, your interest rate will be irrelevant.
- Fees. If you have to pay an annual fee just for the privilege of using the card, that’s a major drawback. And you also need to take note of late fee amounts, cash withdrawal fees, and foreign transaction fees.
- Credit Line. If you pay on your card frequently, you may not need a huge credit line, but you can’t go below a certain minimum before the card becomes very inconvenient to use. Some card companies will give you a higher credit line than others, so be sure to compare.
- Is Interest Avoidable. We hinted at this above, but be sure to check if interest automatically accrues or if you can avoid it by paying your balance off within a month or within 20 days.
- What Future Progress is Possible? Does the card offer specify anything about increasing your credit line, lowering your APR, or other advancements if you make on-time payments?
- Special Perks and Introductory Periods. Does the credit card give you a no or low interest intro period? Does it offer a rewards program of some kind or cash back on any purchases?
The bottom line is that unsecured credit cards for bad credit history applicants do exist, and even abound. Almost all applicants have a number of choices, so it’s worthwhile to sort through them and find the offer that best fits your needs and preferences.