Credit cards are very dependable and are mainly used across all purchases worldwide. Credit cards are highly preferred as they are handy, easily manageable, secure, and have no fundamental value. Over the years, credit card application and issuance criteria have changed to suit everyone who needs one.
Credit cards come in two options: secured and unsecured credit cards. One might be better than the other, depending on your financial situation. If you have or once had a bad credit history, you understand how hard it can be to qualify for a credit card. If you are looking for solutions, here are a few insights on unsecured credit cards for people with poor credit scores.
Secured vs. unsecured credit cards: What are the differences?
The secured and the unsecured credit cards present some differences in their use, as shown below:
Secured credit cards necessitate a cash deposit to act as collateral in case of payment defaults, while the unsecured credit card requires no collateral. Unsecured credit cards give a specific amount of credit that allows you to purchase items and make payments to stay below your listed limit.
The spending limit of secured credit cards is dependable on the size of the deposit, while that of an unsecured credit card depends on the credit profile and income of the user.
Secured credit cards have low-risk afflictions to the user, while the unsecured have a high risk to the user.
Secured credit cards are low-fee cards available to most credit types, while the unsecured card type is mainly associated with excellent and fair credit scores.
How to obtain an unsecured credit card with a poor credit score
A credit score below 500 can stop you from getting financial assistance in many cases. You may face difficulties when applying for a home loan or even a credit card, but that should not be the case.
There are ways to obtain an unsecured credit card for people with bad credit. Here is how you can do it too:
The creditor will ask for your personal information, including your annual income. If your creditor still approves of your application with low credit, they can issue a card.
Alternatively, you can get an unsecured credit card with low credit if you become an authorized user on another person’s account.
If you still do not qualify for an unsecured credit card with a low score, you can work toward improving your credit score.
Unsecured credit companies for people with bad credit
If you have a low credit score and no cash to put down as a deposit for your credit card, you can go for an unsecured card. Some credit companies are open to bad credit and unsecured credit cards. These include:
Capital One Platinum
Mission Lane Credit Card
Discover It
Petal Credit
Capital One Quicksilver Card
Revvi
Total Visa
Conclusion
Credit cards are slowly becoming part of our lives and businesses. Having a credit card that suits your current need is a big financial step. A low credit score may complicate your loan and credit applications, but it is not a limiting factor in obtaining a credit card. Find an institution that accepts your low credit score and build towards a better credit score using the unsecured credit card.