Prepaid & Credit Cards for People with Bad Credit

Having bad credit is even worse than having no credit at all because you already lost your credibility. However, it doesn’t mean you will never get approved for a credit card gain. Working hard you will be able to gain your credibility back. To start with, we would recommend you to check your credit reports. Get a copy of your credit report from each of the three major credit bureaus (Equifax, Experian and TransUnion). Look for any inaccuracies or outdated information. If you see errors, dispute them with credit bureaus. If you see credit inquiries from companies you do not recognize, dispute them as well. Once your report is clear and updated, you can apply for a credit card. A secured credit card is the best option for people with bad credit because secured card are created for people with bad credit. The cards are usually reported to all three major credit bureaus allowing you to improve your credit.

There are different credit card offers for people with bad credit and which one is the best depends on a person’s financial situation, credit score, and preferences. One card can be good for one person but the same card may not be as good for you. So we recommend you to consider everything from fees to interest rates when you choose a credit card. Another thing you may want to get with the credit card is the ability to track your credit score for free. Today many major banks and credit card issuers give access to credit score trackers for free. The score trackers will help you understand what is good and what is bad for your credit score, so you will be able to improve your credit faster.

Today there are credit card issuers that offer secured and unsecured credit cards to people with bad credit. Depending on how bad your credit is you can qualify for a secured or for an unsecured credit card. However, it is easier to get approved for a secured credit card because it requires a security deposit. The security deposit acts as a guarantee of your promise to pay and if you default on a secured credit card, the creditor will use your security deposit. Before you apply for a credit card, make sure your credit reports are correct and do not have outdated or erroneous information.