There are two types of credit cards for people with bad credit, which in the credit card industry is defined as anyone below a 625 credit beacon score. The first is known as a charge card. A charge card allows you to prepay an amount onto your card, and then you can charge up to the amount you have prepaid. At first, this may sound silly. Why not just pay cash? Well, these types of credit cards for bad credit will actually help re-build and improve your credit score because the credit card companies that offer these types of cards will report your charges to the credit reporting bureaus. Being that you have prepaid the card, it will always show as timely payments. Once you have charged on this type of a card for a while, the credit card company will eventually let you turn this into a conventional credit card. Also, charging on this type of card gives you all the protection that a regular credit card will give you. For example, you will qualify for that card’s reward programs, extended warranties on items purchased with this card, fraud protection, and of course, it will keep you from having to carry cash everywhere.
The second type of credit card for people with bad credit is a regular credit card with a low introductory credit limit. This means the credit card company will issue a card with a low credit limit initially (typically between $250.00 and $500.00), and will raise the credit limit as you pay your bills timely and stay within the charge limit of the credit card for a year or so. This, of course, will also be reported to the credit bureaus, which will increase and improve your credit score.
Many times, these types of credit cards for bad credit (both the charge card and the low limit credit card) are instantly approved after you complete an easy online application. We offer many types of charge cards and credit cards for bad credit. You will find the application process to be easy, quick, and will likely result in an approval. After using one of these credit cards for bad credit for a year or so, you will improve your credit score, and then we would encourage you to apply for one of our cash back reward credit cards.