With the recent economic slowdown in US market, the people with bad credit history has increased. Having bad credit history; however, does not deprive one of applying to and having a credit card but qualifying for a traditional credit card might be a difficult task. Bad credit credit cards are launched by banks and financial institutes to cater to people who have a bad credit history and low credit score and thus do not qualify for traditional credit cards. A bad Credit credit card often comes with high interest rates and high processing fee or annual charges and strict rules and regulations.
There are three kinds of bad credit credit cards as detailed below:
Nowadays, almost all the banks issue these kinds of cards and it also helps the card holder in restoring the credit score once he starts making regular payments. Bad Credit Credit card can be applied to the bank where you maintain a savings accounts or fixed deposit account. You have to provide your income data and financial stability proof to satisfy the bank on repayment terms. The processing for first two kinds, as mentioned above, are easy and faster as compared to the third type of unsecured credit card. Normally bank prefers their existing customers over new customers while issuing credit cards to applicants with bad credit history. However, before applying, make sure that your card is reported to the credit bureau since one important purpose behind this card is to improve your credit score. Once approved, make sure that you do not indulge in big purchases and use the card for smaller purchases only. Also make sure that you make payment on time.