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


First of all, you need to find out the reason of these rejections. Issuers typically send a rejection letter with explanations, so just read it attentively. Then, check your credit reports to make sure that there are no mistakes. In case there are some, you can dispute them with the bureaus. You also should have all your credit accounts in good standing, no active bankruptcy, no overdue payments and no excess of the limit. After paying off the late payments (if you have those) pay on time at least for two months on all accounts. Only after that you can try to apply for a card again. But make...
The Barclaycard Ring Mastercard credit card is no longer issued by the bank. That's why you cannot find it and cannot apply for it. You can apply for a different credit card though. You can get a rewards credit card that will allow you to earn rewards on all your purchases and redeem them towards any expenses. There are a lot of great credit cards that can be more rewarding than this card. Just make sure your credit score is good enough to get it.
With a score of 620 you have a bad credit. The Norwegian Cruise Line® World Mastercard® is a premium card, meaning that it is available for customers with good to excellent credit. Thus, although you can give it a shot, it is unlikely that you'll get approved. With poor credit history, your primary goal should be building your credit by obtaining a suitable credit card and paying your balance in full each month before the due date. There are credit cards specifically for people with poor credit history, for example, you can get a secured credit card and put a deposit equal to the credit...

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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.