Second Chance Credit Cards
There are some great second chance credit cards out there, but you have to be somewhat careful and truly understand what you should be eligible for before you start applying.
Unfortunately, there is an entire industry that makes their living off of people that are down on their luck.
In addition, most of the reputable banks will not work with someone that had credit problems in the past.
For this reason, it is imperative that you do as much research as you possible can before you make a move.
There are quite a few forums out there that you should visit often so you can get a feel for how other people in similar situations handle their finances.
Second Chance Credit Cards Options
Wait: No matter what is wrong with your credit report, time heals all wounds. This is the case even if you had a dramatic event that destroyed your credit. The more time that passes, the more less relevant the credit issue becomes. If you go this route, do not apply for anything under any circumstances. You want your credit report to be free from inquiries before you apply for a new credit card.
Secured: Most of the big banks have second chance credit cards that offer people that are not eligible for their mainstream cards. You will have to secure your credit limit with a deposit into the program. However, some banks allow you to secure the credit card with other assets that you may already have on deposit with the bank. Do as much research as you can as some of these credit cards report to the credit reporting agencies just like a regular credit card. This gives you the benefits of caring a credit card and will also help build your credit.
Subprime: If all else fails, there are some banks that specialize in giving customers with bad credit unsecured credit cards. However, the terms are atrocious and it is often not worth whatever benefits the card gives you. They often charge a battery of fees to approve you that are often over the amount of the credit line you are going to see. In other words, you are not securing the card; you are paying $300 for a $300 credit lime. At least with the secured cards, the $300 remains yours.
There are many second chance credit cards on the market but you do not have to be fleeced to get one.
If your only option is secured, do your research and find the secured card that reports to the agencies, has very small fees, and has the chance of being converted to a traditional card over time.
Do not just accept the first piece of mail that comes to your home.
In this society we all need a credit card to rent cars or travel.
However, we should not have to pay an insane amount of money to do so.
For this reason the find the second chance credit cards with the lowest fees and the lowest interest rates before you sign up for anything.
