Best Bad Credit Credit Cards
Having a bad credit will land you into high ranges of interest rates on credit cards. Another chance of having a bad credit is that the credit card company may not approve the credit card application. Overall a bad credit can get you into trouble and will cost you a great deal of money and interest rates. The term bad credit in such a situation implies that the person who has applied for the credit card has a bad credit report and credit rating. This brings us to the best bad credit, credit cards and their mechanisms. However before we talk about best low credit credit cards, let us get to know more about credit card requisites.
About Credit Card Requisites
Most of the credit card offers basically define a specific credit category for which they are meant for. You must have come across advertisements and offers such as 'unsecured credit cards for fair credit' or instant approval credit cards for good credit. The good credit and fair credit are basically credit score ranges that identify the grade of your current credit score. The credit scores are divided into different ranges jut like your school grades. The credit score rating that lies within 760 to 849 is an 'excellent' score range, gets the best interest rate. Two prominent models that are used to asses credit ratings are FICO method and Vantage method. The FICO rating is a score that ranges from 760 to 500. The scores are classified into 6 categories.
| Credit Score Range | Score Rating |
| 760 to 849 | Excellent |
| 700 to 759 | Good |
| 660 to 699 | Average |
| 620 to 659 | Fair |
| 580 to 619 | Poor |
| 500 to 579 | Bad |
Similarly the Vantage ratings are divided into 5 categories.
| Score Rating | Score Rating |
| 901 to 990 | "A" credit (Excellent) |
| 801 to 900 | "B" credit (Good) |
| 701 to 800 | "C" credit (Average/Fair) |
| 601 to 700 | "D" credit (Poor) |
| 501 to 600 | "F" credit (Bad) |
Best Bad Credit Credit Cards
The best bad credit credit card offers are principally made for people who have their credit scores in the bad category. Post the recession era, most of the credit card companies avoid giving credit cards to people who have a bad credit rating. A common convention that has originated is that the companies approve prepaid credit cards in such cases. The following are the common features of the credit cards for bad credit:
- In most of the cases, the credit card companies will levy an APR (Annual percentage rate) that is high. Some recent offers had a rate of APR as high as 25% to 30%. The plus point is that as per the Credit Card Reform Act, 2009, the APR is supposed to remain constant.
- In certain cases, the credit card companies will make the credit card debt a secured debt, hence you will have to secure the debt with the help of an asset. These cards are usually bad credit credit cards instant approval
- When the credit cards are given to people with bad credit, the credit limit is either low or is set according to the monthly income of the person.
- The default payments or late payments invite nasty fines and fees.
