credit card for bad credit no annual fee
Can You Get An Unsecured Credit Card With Poor Credit?
Quite a few people usually wonder if it really is feasible to get an unsecured credit card with bad credit. The answer is, yes you are able to. Nonetheless, be ready to go through an extensive application procedure and pay higher interest fees. Here are some things to anticipate with obtaining an unsecured credit card with poor credit.
1st of all, anticipate there to be a fairly lengthy application. When you have bad credit and are applying for an unsecured credit card, you’re generally regarded as high risk. The bank will generally ask you quite a few personal questions to assess how big of a risk you are, including your present employer, social security number, and monthly housing payment. An application processing fee will normally be assessed, which can price only some dollars to over a hundred dollars. Also, be ready for a higher annual fee and high interest rate percentage if you’re applying for an unsecured credit card with poor credit.
The credit corporation will typically contact your employer to verify you work there and run a copy of your credit report. Just simply because these two actions are taken does not necessarily mean you are being approved for an unsecured bad credit card. The application procedure until the time it is possible to anticipate to receive a card inside the mail typically takes several weeks to several months to complete.
Often remember that credit is really a privilege and you must not be dependent on it. When you have poor credit and are looking to get an unsecured card, use it as a method to build up a positive credit history. Make each of your card payments on time, and by no means utilize much more than 30% of your offered limit. Use this opportunity as a way to set your self on a path to positive financial responsibility.
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Which type of credit card would be best to build credit?
I am trying to decide between a secured credit card and a student credit card. Both will have no annual fee, and I do not care about interest rate because I am paying off the balance every month. Which of these two types would be best for somebody with no credit (not bad credit, just no credit)? The secured credit card seems a bit silly to me because I am basically just give the card my own money first and then use it… what’s the point. At least with a student credit card I would be borrowing money and paying it back, which would seem to me to be the option that builds credit better.
Any compare/contrast opinions and information would be appreciated. Thanks!
You are not “just giving yourself your money to use” on a secured card. The bank / credit union holds your deposit of money as security in case you default on your bill in the future. {But the money is still yours, and will be returned when you cancel the paid off card, or the security is waived and released.} They DO NOT pay your monthly bill with it. On the secured card you ARE borrowing the bank’s money and paying it back ( the “in full” payment is commendable. Keep it up.}
Get the secured card. No one but you and the bank know it is “secured” and it is much more “grown up” than a student credit card. The more $ you provide as security, the higher your credit limit so it can serve you well for a long time until your credit is established enough to get a rewards card or two.