Second Chance Credit Cards
For anyone going through financial challenges, second chance credit cards or bad credit credit cards offer a second chance in getting the benefits of a credit card. Responsible use of a second chance credit card also helps with financial credit repair.
If you are experiencing credit issues and have been denied a credit card, consider the option of second chance credit cards that are available. A second chance credit card will allow you to enjoy the benefits and convenience of a credit card. At the same time, having a credit card account to your name will also allow you to build up your credit history and credit score. As your credit score rises, you will find a wider range of credit card options open to you.
Whatever your financial situation, whether you are seeking a credit card for people with bankruptcy, whether you are looking into credit cards for people with bad credit due to financial challenges, a second chance credit card is a good way to turn things around. It is a fresh start towards financial credit repair for yourself or your business and building a financial future. You may also be surprised that there are many second chance credit card offers available to anyone, despite their history of bankruptcy or bad credit.
Whatever credit card and balance limit you end up being approved for will depend on your credit history and credit score. You may be able to get an unsecured credit card or a secured credit card. As a last resort, even if you are not able to get either one at reasonable terms, you will still be able to get a prepaid debit card, like a prepaid Visa or prepaid Mastercard.
Unsecured Second Chance Credit Card
An unsecured second chance credit card works just like a regular credit card. Once you are approved, you can use the card up to the balance limit, and then pay the minimum or more on your balance once a month. On the downside, to compensate the issuer for the higher risks, these unsecured cards often carry a high interest rate, plus application fees and annual fees.
Unsecured second chance credit cards will carry a high interest rate called the annual percentage rate (APR), perhaps as high as 60% or more. That makes it almost foolish to carry a balance on a credit card like this, as you will quickly drive up your balance just from the interest added each month. That is also why a secured credit card may sometimes make more sense.
Secured Credit Card
Secured credit credits are credit cards where you provide a security deposit to the issuing financial institution that is equal to your credit balance limit. For example, you may put down a $500 deposit for the card and you will be able to charge your card until it maxes out at the $500 limit. With this deposit, it's a lot less risky to the issuer and therefore the terms are also less onerous terms than when compared to an unsecured second chance credit card. However, do still thoroughly review the fees and terms before you apply.
The best cards will offer an interest rate that is similar to what someone with a good credit score pays, and you will even find offers for 0% APR rates if you shop around. Also, the best secured credit cards usually can be gotten without application fees, monthly maintanence or annual fees. When you close your account in good standing, your deposit will be returned to you in full.
A secured credit card can sound very much like a prepaid debit card (sometimes referred to as a prepaid "credit" card). If you qualify for it, there are several advantages over a prepaid debit card that makes it a better choice. It may not come with the usual fees that a prepaid debit card has. More importantly, a secured credit card is a real credit card account.
The account activity is being reported to the main credit bureaus like Experian or TransUnion, and that gives you a chance to build up your credit history to qualify for better and better credit terms down the road. Not all secured credit cards will report their accounts to credit bureaus, so make sure to pick a card that does.
Prepaid Debit Card/ Prepaid MasterCard or Prepaid Visa Card
If you are unable to find good alternatives for either of the above options, you can always choose a prepaid debit card Prepaid Mastercard or Prepaid Visa card (sometimes referred to as a "prepaid credit card").
These cards will provide the same convenience and beenfits of a credit card, but they are not credit cards, but rather debit cards. You put funds into them and then spend the funds in the account. Since it is a debit card and not credit card, it will not build your credit history directly.
Second chance credit cards like unsecured or secured credit cards offer the opportunity to receive the benefits of having a credit card even if you may have been denied a regular credit card. Whatever you current financial situation is right now, it can improve if you handle your second chance credit card will care and pay your bills on time.
This is an arrangement that will build up your credit score and set you up for better credit terms over time. When shopping for a second chance credit card, take your time to review various offers and terms, paying attention to the interest charges (APR) and all other charges involved to find the best deal that matches your needs.
As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!