Guaranteed Approval, Unsecured Cards for Bad and Poor Credit – ASAP Credit Card
Life happens and sometimes a poor credit score is beyond your control. Getting a mortgage, car loan, and sometimes even finding a job can all be negatively affected by a low credit score, but this doesn’t mean you can’t get a credit card.
Unsecured credit cards are a perfect option for individuals who are in need of short-term funds but do not want to put down several thousands of dollars that traditional secured credit cards require. There are a number of companies that specialize in providing unsecured credit cards to “subprime” individuals, so they can slowly rebuild their credit scores. Here are the top 4 providers of unsecured credit cards, so you can make the best decision to rebuild your credit.
Genesis offers several different credit card options for those interested in rebuilding their credit. Genesis reports to all three major credit bureaus so as long as you pay off your balance on time, you can expect that credit score to shoot up while using their cards. Although Genesis cards tend to have lower spending limits than others, the credit reporting benefits are a great plus. The Milestone MasterCard, from Genesis, is an excellent option for those with poor credit scores. The card offers all the normal fraud and theft protection, along with mobile account access. Annual fees are less than $100 with a 23.9% APR. Applicants with poor and bad credit are still considered making the Milestone card a great solution for people interested in rebuilding their scores. Another option from Genesis is the Indigo MasterCard. Applicants can pre-qualify for this card without damaging their credit scores, and like other Genesis cards, all credit histories are considered. The Indigo MasterCard provides excellent fraud and theft protection like all Genesis cards. This card also reports to all the major credit agencies which will help users improve their credit standing. The free mobile account access makes checking your account simple and convenient.Credit One Bank
The Credit One Bank is a well-known credit card issuer and is famous for being the only “subprime” provider that also provides cash back bonuses. The approval process is slightly more detailed than Genesis, so individuals with extremely bad credit scores may have a hard time qualifying. For those with poor credit, this card is an excellent option with cash back features. The Credit One Bank Visa card provides a 1% cash back bonus from their unsecured, no deposit card. The card is known for credit line increases, although sometimes a fee may apply. Applicants can pre-qualify for the card within 60 seconds online and even choose their own monthly payment due date. Users can also monitor their credit scores online for free. Credit One Bank also gives applicants a different choice with their Unsecured Platinum Visa card. This card automatically monitors your spending and will increase credit lines as soon as you’re qualified. Pre-qualification is easy and takes less than a minute. Credit One’s Platinum Visa card comes with 1% cash back and does not require loans or deposits to use. The card guarantees $0 fraud liability and will send you email and text alerts regarding billing due dates, posted payments, and up to the minute credit limits.Total Visa Card
Aside from the popular issuers above, lesser known banks such as Total provide unsecured credit card options. The Total Visa Card does require applicants to have an open checking account with the bank, in return, the application process is fast and easy. Users will receive a genuine Visa card that is accepted by all merchants nationwide. This card also reports to all three major credit bureaus making it a solid choice for those interested in bumping up their credit scores. Surge MasterCard
The last from our lesser known bank list is the Surge MasterCard. Surge is a smaller provider than the big issuers but also reports to all three credit bureaus. Their unsecured credit card starts at a $500 limit but is done through a quick and easy application process. MasterCard is widely accepted worldwide and the account at Surge allows for 24/7 free online access. Surge does require that applicants open a checking account with their bank, but caters to individuals with low or bad credit.
What Are Unsecured Credit Cards and How to Use Them
Many people ask themselves what are unsecured credit cards? Credit cards to get a lot of criticism for various reasons. However, if used correctly, they can be very useful. They can help you establish your credit history and boost your credit score. Also, they can be of service when purchasing items on the internet. Unsecured credit cards can help you in an emergency situation, and they can allow you to cash in on rewards. Some companies require you to have good credit to receive approval. However, unsecured cards are available for people with average credit. This article will provide a detailed account and give you information about unsecured credit cards. If you are thinking about a card, you need to research what are unsecured credit cards first.
If you want to know what are unsecured credit cards, here is where you begin. They are a line of credit that you can use to buy things, for balance transfers, and for cash advances. Typically, a bank, credit union, or other financial institution issues them. You will have to pay at least a portion of the money back when your due date approaches. The company will give you a minimum amount that is due, and you will need to pay that. If you do not pay the full balance on the card, you will have to pay interest.
Some unsecured credit cards carry an annual fee. Others have an introductory period in which you do not pay interest. When you are learning what are unsecured credit cards, make sure you are aware of the interest rate and fees that come with the card.
Fees are different among lenders. If you do not pay your bill on time, they might charge you a late fee. Some companies have a few days which they call a grace period. Some other types of fees they could charge you include cash advance fees, balance transfer fees, and foreign transaction fees. Be aware that with some companies, these fees could be high.
The money you owe on the credit card will be charged an annual percentage rate or APR. The more you pay on your balance each month, the less money you will be paying in interest. When asking what are unsecured credit cards and when searching for a card, you need to look at a card that will give you the best rate possible.
Finding the right credit card for you takes time. It doesn’t suffice to ask what are unsecured credit cards. You need to know the options, so you can make a good decision. Before applying for a card, you need to check your credit score. If it is low, you might consider getting it higher before applying for an unsecured card.
After you know your score, you need to search the credit requirements for the cards that you prefer. Do not apply for a card that requires a higher credit score than you have.
Before applying for a credit card, decide what type of card you need. Do you want one with a lower interest rate, or do you want one for the rewards? Do you need one to transfer a balance? There are numerous cards that come with a 0% APR for an introductory period. Make sure you know when they will charge you the interest on the card.
Some cards offer rewards on travel. Others offer cash back rewards. With some cards, you will get many reward points just for signing up. If you get a rewards card, make sure you know if your reward points expire. Also, be certain you know how you can redeem the rewards.
As pointed out above, it’s crucial you know what are unsecured credit cards before you apply for one. You also need to know how to use them.One advantage of these cards is that they have the ability to improve your credit score. The company will report you to all three major credit bureaus. Each time you make a payment on time, it will be an asset to your credit. It is critical that you make all payments on time.
One advantage of these cards is that they have the ability to improve your credit score. The company will report you to all three major credit bureaus. Each time you make a payment on time, it will be an asset to your credit. Therefore, it is critical that you make all payments on time.
All credit companies have finance charges. You can avoid these charges by paying off the balance each month. When you keep your balances low, it will reflect on your credit score. Moreover, it will help you build credit.
Do not spend money that you do not have. Make sure you use it responsibly so you will not incur a ton of credit card debt. Keep your balances low. If you do not have the money to spend and you keep charging on your card, the interest rate that you will charge will be large. As a general rule, you want to stay at least under 30% of your spending limit.
Many people use credit cards to earn rewards. You might get 1 or 2% back for the money you spend. Do not let rewards entice you so that you overspend. It is a good idea to use your credit card for needs, not wants. Lots of frivolous purchases can get you in financial trouble. Do not buy it unless you absolutely need it.
In some cases, you can use credit cards to make a larger purchase. This is why it is important to get a card with a low APR. Make sure you pay as much of the balance as you can each month.
Unfortunately, in this age of technology, credit cards can be victims of fraud. Many companies offer fraud protection. Therefore, if you do not authorize it, you will not be responsible for paying for it. It is important to track your spending. Know what you are buying, and make sure there are no purchases that you did not authorize on your account.
It is also a good idea not to get multiple cards at once. Having too many credit cards at the same time can damage your score. You might seem risky to lenders. It is not a good idea to have more than 4 credit cards. If you decide that you do not want the card, closing it can harm your credit. Unless there is an annual fee, leave the card open with a zero balance. That will help your credit.
Always make sure you read the terms and conditions before you apply for a card. Look carefully at the interest rate, fees, and rewards. Compare credit cards and offers to make sure you are making a wise choice.
Unsecured credit cards can be financial tools that can be an advantage to you. However, they can destroy your finances, so make sure you use them wisely. If you want to know what are unsecured credit cards, look at all the options. In this way, you can choose the best one for you.
Difference Between Secured & Unsecured Credit Cards
Secured and unsecured cards are similar when you make a purchase.
Credit cards make it more convenient to pay for big-ticket items or cover everyday expenses if you're short on cash. Credit cards can be secured or unsecured; the type of card you qualify for largely depends on your credit. Secured and unsecured credit cards function in a similar way when making purchases. There are, however, a few key differences you should keep in mind before applying for either type of credit card.
With a secured credit card, the card issuer requires a cash deposit, which acts as your collateral. Your credit limit is either the amount of the deposit or slightly less. You might be able to increase your credit line by depositing more money with the card issuer, or it may automatically be increased after you've established a positive payment history. An unsecured credit card requires no initial cash deposit and your card limit is based on your credit history. According to Bankrate, secured credit card limits typically range from $300 to $500. Unsecured credit cards can have limits ranging from several hundred to several thousand dollars.
Your credit history plays a large part in determining which type of credit card you qualify for. If you have a low credit score because of multiple delinquencies, charge-offs or bankruptcy, you might only be eligible for a secured card. A secured credit card might also be your only option if you're just beginning to establish your credit history. With a credit score in the fair to excellent range, you should qualify for an unsecured card. A card issuer might also consider your income and expenses when making the decision.
Secured cards tend to be more expensive in terms of the fees and the annual percentage rate of interest you can expect to pay compared to an unsecured card. Depending on the card issuer, you might have to pay an annual fee, a monthly service fee or an account setup fee to open a secured card. Interest rates also tend to be in the neighborhood of 20 percent or higher. With an unsecured card, the better your credit is the lower your APR will be. Many unsecured cards charge no annual fee at all while others allow new members to waive the fee in the first year.
If you're looking to rebuild bad credit or start building your credit history, a secured credit can be a useful stepping stone to achieving your goal. Secured cards are also a good choice if you're worried about racking up thousands of dollars in debt, because they tend to have much lower credit limits. If you've already established good credit, using an unsecured card gives you more spending power. Certain cards also allow you to earn cash back or rewards points on purchases, which can add up to big savings. With either type of card, you'll have to pay the balance in full each month to avoid paying interest.
Rebecca Lake is a freelance writer and virtual assistant living in the southeast. She has been writing professionally since 2009 for various websites. Lake received her master's degree in criminal justice from Charleston Southern University.