Though held responsible as one of those elements that can drastically bring down the credit scores, fact remains that there are credit cards that can repair bad and less than perfect credit and are often recommended to those who are looking to re-establish their credit. Since credit can easily go from good to bad (poor judgment and mismanagement of credit cards being the prime reasons), therefore, several options have been made available very recently for people who want to go for a credit card with a bad credit score.
Credit cards for bad credit are a bit different from the normal ones as per the terms; it also depends upon the specific situation. However, before someone applies for any of these special credit cards for bad credit repair, it is advised that the person tries out other alternatives methods like debt consolidation, use of introductory APRs on balance transfers or similar other options. However, if applying for credit cards for bad credit seems to be the last straw, there are several credit cards designed to rebuild a poor credit history that are again broadly classified as secured credit cards for bad credit and prepaid credit cards for bad credit.
Secured credit cards for bad credit are named so because of their requirement for a collateral to get approved, which often come, as a security deposit of a predetermined amount that is of equal or greater value to the credit amount. Other forms of collateral can be any movable or immovable property of a substantial monetary value.
Credit cards for bad credit usually have a very low credit line of about $250 or so; it may also require some additional fees to be paid. It is recommended that the applicant should read over the details of the terms and conditions for these add-on services beforehand and to make certain if any of the fees are payable before proceeding with the application process. If credit cards for bad credit are used responsibly and payment of bills is made in time, an increase in credit may happen. But it has to be kept in mind prior to anything that the extra fees and low credit lines are only worth if a person is willing to get the overall credit back on track.
The second type is the prepaid credit cards for bad credit; though not credit cards per se, these cards are rather used like credit cards at any place where credit cards are accepted. The prime advantage being no associated financial charges, the prepaid credit card for bad credit help in avoiding debt since all purchases are paid beforehand. The cardholder's credit line depends on the amount transferred to the card, thereby reducing the risk of running into credit card debt. These cards do not charge finance fees most of the times, but other fees like monthly charges; startup or application fees; over-limit fees and ATM fees may apply. The following are considered the best among the credit cards for bad credit:
Orchard Bank Platinum MasterCard
- No up front fees
- Premium Platinum benefits including Purchase Protection
- Reports to all 3 credit bureaus monthly.
Orchard Bank Gold MasterCard
- Gold card privileges and benefits
- Reports to all 3 credit bureaus monthly
Orchard Bank Silver MasterCard
- Reports to all 3 credit bureaus monthly, which can help improve your credit score
- Free Online 24-hour Account Access and Bill Pay
- Periodic credit limit increases
Centennial® Gold MasterCard® / Visa®
- Monthly reporting to 4 major credit bureaus
- Low APR on purchases!
- Get the prestige of a GOLD MasterCard/Visa
First PREMIER Bank Gold MasterCard® / Visa®
- Quality Customer Service
- Low APR on purchases