When it comes to handling your finances, one of the most important tools that a person can have is the credit card. Aside from cash, the credit card is an intangible solution for purchasing whatever you want, whenever you want to, nowadays. Because of this, it is quite hard to live normally without a credit card; however, there are instances when your credit card application would be denied, and one reason for this is your bad credit. With the economy still ailing from the recent setbacks that it has suffered, it is easy to see why a lot of people have bad credit associated with their name. If and when they miss payments because of job loss or other factors related to the economy's performance, they'll automatically end up with a bad credit score in their history. This is something that could really cost them, especially if they plan on getting loans, or when they want to apply for a credit card. But this doesn't mean that they won't be able to get this useful piece of plastic; they could apply for unsecured credit cards even with bad credit. Unsecured credit cards can really help in times of need, and if you don't know much about them, just read through this article and find out for yourself.
Why get Unsecured Credit Cards?
When you are in need, and you can't seem to get any credit cards because your credit history just won't allow you, your best bet is to get unsecured credit cards. But before you jump into the next credit card offer that you'd stumble upon, it is best to know your other options first.
Aside from Unsecured Credit Cards, you can also choose to get prepaid credit cards. These cards will help you avoid getting more credit card debt, but this doesn't really help you improve your credit score. This type of card is just like a debit card, wherein you pay for its contents first before you can actually use it for your regular purchase. Of course, you'll have it handy, but it still makes no sense when your actual goal is to have something that you can rely on, and still be able to clear up your credit history. In the end, unsecured credit cards provide a better opportunity for you, instead of these prepaid credit cards.
If your credit score is really bad and you feel that you can't improve because no one is taking a chance on giving you a credit card, then it leaves you no choice but to get your credit card somewhere other than the usual credit card providers. If you try to search online, you'll find that there are a lot of financial institutions who specialize on helping people with bad credit scores, and one of the services that they provide involves uninsured credit cards. With a thorough search, for sure you'll find one that fits your needs and your specifications perfectly. But before diving headfirst into the next offer on unsecured credit cards, you should be family with the terms and conditions that these services have.
Uninsured Credit Card Fees
One of the most important aspects to consider when you consider getting unsecured credit cards is the fee that you need to shoulder. There are several fees that you need to be aware of, because if you're not familiar with any of these, it might come as a big shock to you when you get your first uninsured credit card bill.
The first fee that you have to know is the initial Application Fee. Since this is a credit card for people with bad credit, you can't expect to have reasonable application fees on these uninsured credit cards. This fee is usually a one-time charge, but this could easily go beyond a hundred dollars, depending on your bad credit score. Just like other credit card fees, this fee would just be included on your first bill, or be divided into your succeeding bills, depending on your arrangement with the financial institution offering these unsecured credit cards.
Aside from the application fee, you also have to pay for the Processing Fee when you're applying for these Unsecured Credit Cards. This is again a one-time fee, but this could also cost quite a lot. You also have to pay for the Annual Fee, so that you'll be able to use these credit cards. Because of your bad credit score, using these unsecured credit cards is more of a privilege instead of a right, thus, you need to pay the fee to enjoy this kind of privilege. And when you're using this regularly, a lot of these unsecured credit cards will also charge you a Monthly Processing fee, which could go somewhere between a dollar to $15, depending on your credit card activity.
Despite all of these fees, these unsecured credit cards are still attractive to those who don't have a choice. This is also their best bet to have a good credit score, so as long as they're able to maintain their account, then they'll be able to get a regular credit card after some time.