What credit card options exist for people with bad credit?

Answered on October 12, 2010
Updated on October 12, 2010
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
People with bad credit history require credit cards that are approved without credit checks. Although majority of credit card companies perform credit checks before approving the applications, there are a number of companies that provide no credit check cards. These cards are referred to as bad credit cards, since they are good options for people with bad credit history. The first thing that comes to mind when applying for bad credit cards is the prepaid card or a secured credit card option. Prepaid card has both advantages and disadvantages of usage. For people with bad credit, paying money upfront might be a difficulty, which is one of the reasons they will look for credit cards. But prepaid credit cards need the user to load the card with some amount before using them. So does the secured credit cards, where the applicant must deposit a specific amount as security, and the credit limit will be the amount deposited. Although these cards are helpful to shop online and make travel bookings and reservations, they are limited to the amount a user can prepay, in order to use the card. Also, prepaid cards don`t come for free; they come with a transaction fee for using the card. Some credit card companies offer unsecured credit cards which works exactly the same as regular credit cards. The user will be preapproved for a certain amount of credit. The catch here is that the credit card company withholds a certain amount of the preapproved credit limit as a security, and only the remaining amount will be available to the user as a credit limit. These cards work in a way like secured credit cards, but the user need not pay the deposit amount upfront, which makes these cards more desirable than the secured credit cards. People with bad credit can apply for regular credit cards too. Although credit checks can be avoided, credit card companies charge a very high rate of interest for bad credit history applicants. Also, the available credit limits will be much lower compared to good credit history applicants. Also, the fines, late payment charges and hidden costs will be much higher for bad credit history applicants. Before applying to credit cards, making sure that the company accepts bad credit history applications is mandatory. Any rejection of application can do further harm to credit history and lower the credit scores. Careful comparison of all the options before signing up, can lead to the best decision, and can help recover from a bad credit history.
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 Platinum 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 Platinum 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 Platinum 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.