You say you would like to get a credit card but that you have bad credit? Well, there’s good news. There are credit cards for bad credit. In fact, you have a number of options.
A secured card
Your first option would be to get what is called a “secured” card. For example, there is the Capital One® Secured MasterCard®. The way it works is that you make a refundable security deposit that can get you a line of credit up to $3000. There are no processing fees or application fees and how you manage the card is automatically reported to the three major credit bureaus. If you manage the card correctly, you can qualify to have your credit line increased without having to make any more security deposits. This card does require an annual fee of $29 and it has an APR is 22.90 %.
BuyRIGHT Prepaid MasterCard
This MasterCard like the Capital One Secured MasterCard requires that you make a deposit and then draw against it. It has a special offer if and when your reload it and includes free direct deposit and online bill pay. It even allows you to earn rewards. There are no overdraft fees, no credit check and no feels for bounced checks.
UPside Visa® Prepaid Card
This card is similar to having a checking account with a prepaid card. Again, you deposit money to secure the card and then charge against that money. Visa says that with this card you can save up to $220 compared with other cards in just the first year. There is a 100% approval with no credit check and no activation fee. The monthly fee is only $.99 if you load $500 on the card each month–or $4.95 a month ($59.40 a year) otherwise.
A non-secured card
The First PREMIER® Bank MasterCard Credit Card represents a way to get a credit card without having to deposit money to secure it. If you are approved, you pay a $95 processing fee to open your account and have access to a $300 limit. First PREMIER reports to all three major credit bureaus so if you manage the card appropriately, it will have a positive effect on your credit.
Pink ACE Elite(TM) Visa® Prepaid Card
This card sponsors the National Breast Cancer Foundation. It requires that you “secure” the card with an initial deposit. You can have direct deposit with this card and if you deposit $500 in one calendar month, you qualify for a $10 Purchase Cushion. There is no application fee and no credit check required. The annual fee $7.95 per month or a total of $95.76 a year.
As you can see, these credit cards come with different benefits and different fees. If you were to sign up for the first card you came across, you might end up spending more money than necessary. Be sure to do some comparison-shopping first to make sure you get the lowest cost and the most benefits.