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It is possible to find bad credit unsecured cards for people with bad or poor credit scores. There are some lenders that will take a chance with customers with less than perfect credit. The conditions they set or issuing these cards however depends on the customer and their most recent credit history. Usually, if a person does not have a bankruptcy or are late on current debts, there may be an unsecured card available for them.
Know Your Credit Score
Issuers base their decisions to issue an unsecured credit card by analyzing information provided by the three major credit-reporting agencies. Scores over 700 of a scale between 501 and 990 are considered good while those below that are at-risk. A score above 620 is considered minimum to qualify for most credit cards.
People with bad credit that is below 620 may be able to obtain an unsecured credit card. It is important to understand what your credit score is and dispute any item that may be erroneous. Making adjustments to your report requires time and persistence but will pay off in the long run.
Pay off Existing Bills
You should attempt to settle any outstanding debts to the best of your ability. Late pays and slow pays may lower your options for an unsecured credit card or lower the available credit limit. Your current payment history is a criterion that will be considered and any recent adverse reports to your credit history will affect your application.
Search for the Best Offer
There are several card issuers that are willing to offer an unsecured credit card, but it requires some work on your part. A web search using the keywords “bad credit unsecured cards” will yield a variety of places to find offers.
Compare Terms
You should expect a higher APR or annual percentage rate for a bad credit unsecured card. The annual percentage rate is the amount of interest you pay on the monthly balance. Any fees and charges in addition to the interest rate influence this amount. You will also find with bad credit unsecured cards higher monthly and account maintenance fees as well as annual fees. This will influence the APR, so be prepared to shop around.
The steps you take to improve your credit worthiness will help you obtain a card that is right for you. The more responsible you are, the lower the rates and higher the credit limit you will obtain, even with bad credit.
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