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Credit Cards for No / Bad Credit

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Here are your options if you have a bad credit history...
Credit Cards for Bad Credit...By ASAP Credit Card - Copyright © 2008

Worried that bad credit or a lack of credit history could prevent you from obtaining a credit card? We have good news! Credit card issuers have credit cards designed specifically for people like you! While these cards tend to have higher rates (and additional fees) when compared to 'standard' credit cards, they'll give you the opportunity to build / improve your credit score over time.

Secured Credit Cards

Secured credit cards are available to just about anyone, regardless of credit history. That's because a security deposit is required - normally between $100 and $500 - before you can make any purchases. Since the security deposit determines your credit limit, if you run into a problem paying your bill at any time, the deposit will be used to cover your obligation - securing your debt.

Although this may not seem like a 'true' line of credit, you'll have the chance establish or rebuild your credit history since all your activity will be reported to the 3 major credit bureaus (Equifax, Experian and TransUnion). Here's some other points to consider:

  • Interest may be paid on your deposit - up to 4.5%.
  • Cards that carry the MasterCard or Visa logo appear to merchants like a standard card.
  • Some issuers offer double the amount deposited as the credit limit.
  • Your credit limit may be increased without additional deposits after you've successfully shown your ability to responsibly pay your monthly note.
  • Be aware that some issuers charge a fee to increase your credit limit.
  • You may be denied a credit card if any late payments posted on your credit report within
    the last six months.
  • Some issuers will not consider applicants with a past bankruptcy.

Secured credit cards are a great option to help build or repair your credit history. Try to pay more than the minimum amount due whenever possible and always make your payments on-time. Once you've demonstrated that you can handle your credit responsibly, the credit card company may increase your credit limit without an additional deposit. Eventually, you'll be able to start applying for 'standard' credit cards with lower APR's and less fees.


Unsecured Credit Cards

An unsecured credit card is a 'standard' or traditional credit card that doesn't require a security deposit. The interest rate and credit limit are based solely upon your credit history.

Most unsecured credit cards are out of reach for people with poor or no credit; however, there are a few exceptions offered at ASAP Credit Card. While these offers still carry higher interest rates and additional fees when compared to 'standard' credit cards for good credit, you won't pay a security deposit like a secured credit card.

Prepaid Credit Cards

A prepaid credit card operates on a "pay-as-you-go" basis and can be used anywhere credit cards are accepted. They offer many benefits, and in most cases, are very easy to use. But be aware, not all prepaid credit cards report your activity to the major credit bureaus. While you'll benefit from the safety and convenience of a prepaid card, you won't be building or improving your credit history if the credit card company doesn't report your card activity. Luckily, many prepaid cards report your credit card activity or offer this option for an additional monthly fee.

Our Recommendation

If you have bad credit, or no credit at all, try applying for an unsecured credit card (designed for bad credit) first. This allows you to avoid the security deposit and provides you with a 'true' line of credit if you're approved. Since most issuers will offer you a secured line of credit if you don't qualify for the unsecured offer, you should try to get the best deal you can first.

* See a complete list of our Credit Cards for Bad Credit >

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