Got bad credit? Right now that seems OK and credit card companies that specialize in subprime lending want your business.
Bad to poor credit is considered anything below a FICO Score of 660. If you fall in this range you are in luck. Now that is not to say that you are not going to pay more in fees for these type of credit cards as of course they are more willing to take a risk with you than the regular credit card lenders.
With the financial crisis over and lenders wanting to get more business, they are now willing to increase the approvals on those Credit Cards for those with poor or bad credit.
Now do not expect to get the lowest interest rates or fees as you are going to pay to have these and we will tell you the best lenders for bad credit type credit cards.
Interest rates can be as high as 20% on credit cards for those with poor or bad credit. But if you are rebuilding your credit you should be paying these off every month anyway. If you do, then you should not be that worried about the high interest rates as they will not affect you if you keep your balance at zero.
The fees are something to review and think about though. They vary on different subprime credit cards.
First Premier has a credit card with fees as high as two hundred dollars and a thirty six percent interest rate. These type of cards should be avoided.
Another option is to look for a good secured credit card rather than an unsecured card. The difference is that with the secured card you are putting up the money ahead of time and that becomes your balance available. The card is just to give you the simplicity of utilizing a credit card.
We think the Orchard Bank credit cards are the best option. They have both secured and unsecured credit cards and will approve you for what is best in your situation. If you do qualify for the unsecured credit card, just use it responsibly and it can be a great way to rebuild your credit.