If my credit score is BAD, should I apply for a credit card?

Answered on August 02, 2010
Updated on August 02, 2010
The content is accurate at the time of publication and is subject to change.
Amy Miller Amy Miller
Yes, if your priority is to build credit. If you just need a card for electronic transactions, it might be better to consider a prepaid debit card. Prepaid cards provide 100% guaranteed approval, no credit check and no bank account required. This is great for people with bad credit. You shouldn't fear denials. Prepaid cards also help you control your spending, you can only charge to your card what you have pre-deposited. As a rule prepaid reloadable cards are less costly than credit cards for bad credit. As the latter ones have high interest rates, higher annual fee, and procession fee. Credit cards for people with low scores usually have an initial limit of $300 with credit line increase fee often equaling half of the increase. While with prepaid cards you can load your card for free via direct deposit or add cash up to $1,000 at retailers worldwide. Prepaid debit cards are convenient in use and safe. You can use your prepaid Visa or MasterCard worldwide and pay anywhere Visa and MasterCard are accepted. Today prepaid cards have a whole range of great features and convenient tools – credit builder, short term loan, bill pay, mobile banking and more. Decide what your priorities, needs and habits are and choose a card that will work the best for you!
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

User Comments about This Question


A Group One Freedom Card is not strictly speaking a credit card. It is a shopping card that you can use exclusively at the Horizon Outlet (thehorizonoutlet.com). The Horizon Outlet is an online store that offers a range of merchandise: men's, women's and children's apparel; home goods; entertainment and electronics; and financial services. You should apply for a card if you are sure that you will buy at this online store often.
The Group One Freedom Card is a shopping card that you can use exclusively at the Horizon Outlet (thehorizonoutlet.com). It is an online store that sells clothing, toys, small appliances and other small-ticket items. The bank may report to at least one credit bureau and therefore help you build your credit score, but for that you need to pay some costs. All of the fees you mas see in the card's terms and conditions, however be aware of the following: One time Card Issuance and Account Validation fee: $0.00; Monthly Membership Fee: $14.77 - this is paid monthly for the full benefits plan; Late...
No, it can't be used for cash advances. The Group One Freedom Card can only be used to make purchases through the Horizon Outlet website or catalog. This is a shopping credit account, not a credit card. Cash advance features are only available to the credit card owners. Credit cards are not the best source of cash, however, as there are high fees and APRs on cash advances. Debit cards are the best for cash advances.

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There is a credit card for any credit and for any purpose. Whether you want to start building your credit from scratch or earn rewards on purchases, save on gas or travel for free, you can find a good credit card offer for that.