A FICO (Fair Isaac Corporation) score below 580 is where the problem starts, when credit card applications are rejected outright. However, there is respite in the form of ‘secured’ credit cards.
Secured Credit Card
Call it the knight in a shining armor or a true hero, secured credit card offers credit facility, as well as the prospects of improving credit score, though with a slight twist. The twist being the deposit that varies, as per the credit card issuing company.
Although it sounds like a prepaid card that lets you purchase goods as per the amount on the card, secured credit cards are those key ‘plug-ins’ that break the vicious circle of credit improvement. It is ironical that people with good credit (who don’t need to improve their credit) can apply for a credit card and stand a chance for improving their credit score, whereas those truly in need are neglected for so called strategic reasons.
The only thing to be careful about when applying for a secured credit card is to ensure that the issuers provide a statement of credit activities once every month or quarterly. Most cards come at a reasonably attractive APR and interest rates, though one may compare various options to get the most pocket-friendly card.
Credit Card Options for People with Bad Credit History
Unfortunately, people with bad credit do not have many options. Though they have the time-consuming approach of waiting for some years before trying to apply for unsecured credit cards; however very few can wait that long. Secured credit cards thus emerge as the final option for enhancing the credit score.
People looking for ‘credit card apply bad’ must know that in times of credit adversities, it is best to decrease credit activities and focus on strategies that improve their credit score. Secured credit cards are one of the best ways to revamp the score and expect positive responses from the credit issuer in a year or two.
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