Getting bad credit cards is not a herculean task anymore
There were times, a few years ago, when people with bad credit faced a tough time in getting credit cards that can help them fix their mistakes. However, today, things stand changed and it is now possible to obtain bad credit cards without having to bend over backwards.
Though cards under this segment are easily available, they carry high interest rates and high fees. Hence, the applicant will have to use this card wisely in order to better the credit score rather than worsen it further. The good news is that the CARD Act that has come into effect in recent times stipulates banks and other financial institutions to review each consumer`s track record once every six months and lower the interest rate if they have been consistently doing a good job of repaying their dues. This implies that in addition to bettering their credit history, consumers can also reduce the interest rates on their bad credit cards.
The secured cards are the best options for people with bad credit. However, on the flip side, most of these card lenders do not report transactions to the credit bureau which leaves no alternative but to opt for unsecured credit cards. It is important to pick and choose the unsecured credit cards wisely to ensure no further concerns or blemishes on the credit report. There are credit cards that banks are exclusively offering people with bad credit.
The Classic MasterCard from the First Premier Bank is a bad credit card worthy of your consideration. The bank which currently occupies the tenth place in issuing MasterCard to its consumers specializes in deals for subprime consumers. While there is no need for any deposit upfront, the fees associated with the cards and the interest rate are pretty high.
One of the newest additions to banks offering credit cards to subprime borrowers is Anacott Financial LLC. Being a part of the Deutscheland Financial Services, this bank does offer both secured and unsecured credit cards to people with bad credit. The choice between offering a secured or unsecured card is made by the bank after reviewing the application and credit history of the applicant. The promotional interest rate on the card stands at 6.99% but reverts to 13.99% once the promotional period expires.
The Classic MasterCard from Orchard Bank is also another card worth considering. However, this is definitely not for people who have a doubt about making payments on time. With the interest rate on this card ranging between 14.90% and 28.90%, this is not a card for defaulters.