If your credit is bad then you know that finding credit cards can be a bit of a problem. Most major credit cards tend to refuse people with bad credit simply because they consider them a risk. That being said it isn’t impossible to get credit cards for bad credit, and there are a number of ways you can try to do so!
Prepaid Credit Cards
Somewhat like debit cards, prepaid credit cards are an excellent way to get credit cards for bad credit. As their name implies, all you need to do is deposit a certain amount on your card before you use it, and then ensure that you always keep the balance positive.
Some prepaid credit cards do allow you to go slightly over your deposit limit – and this is a nice feature to have.
Although it might not be all that great having to constantly deposit cash into a credit card before you can use it, this type of credit cards for bad credit are definitely the most popular out there!
Zero Deposit Credit Cards
Finding credit cards for bad credit that require no deposit is much harder – but still, not entirely impossible.
Some credit card companies get around the risk of giving zero deposit credit cards to people with bad credit by giving them a much lower credit limit (depending on the deposit that would normally be required).
Essentially this means that they’re subtracting the required deposit from your credit limit – which is fairly reasonable and will allow you to get a card and use it without requiring any deposit – but at the same time you’re going to have a pretty small limit.
Just be sure that you know exactly what that limit is!
Risks with Credit Cards for Bad Credit
If you’re really thinking about getting a credit card while your credit is bad – you need to be aware of the risks. Remember to read the fine print with all the credit cards for bad credit that you happen to find – and make certain that you don’t end up paying high interest rates that you cannot afford.
All things said and done, when it comes to credit cards for bad credit the ‘prepaid’ version is by far the safest. However if you find it too much of a hassle and want a zero deposit credit card then you’re going to have to look carefully and try to pick out one that offers the best deal.
Remember: While there are numerous credit cards for bad credit out there, you need to be sure that the one you choose isn’t going to make your credit problems worse than they already are.
Preferably – any credit cards for bad credit should help you improve your credit rating instead!