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Unsecured Credit Card Bad Credit - Can I Get An Unsecured Credit Card With Bad Credit?

bank limit fee charge

Bankruptcy filings in 2009 reached a whopping 1.41 million. Staggering as that sounds, it still falls short of the 2006 record with nearly 1.8 million. Credit card defaults also skyrocketed in 2009 and reached a 20 year high.

American Express and Citigroup took the biggest hits. Chase and Capital One were not far behind. Charge offs are estimated to exceed $75 billion.

In an attempt to stop the bleeding, creditors have drastically reduced credit card limits, sometimes to a few hundred dollars over the outstanding balance. This is the creditor’s way of motivating consumers to pay down their balances without accumulating more debt than they can handle.

Regardless of your credit history, there are always credit cards to be found. Bad credit unsecured credit cards are an ever growing business. In these cases unsecured bad credit cards come with a price. Many issuers charge activation fees up front, putting you in debt before you ever get the card. Although new credit laws have reduced the amount these companies can charge to 25% of the credit limit, you are still going to pay over $100 for an unsecured credit card with a $500 limit.

There are some good and some really poor sources for unsecured credit cards . Some are a bit costly but they are a good way to repair bad credit. Let’s compare some of these bad credit options.

American Octane Onyx Card
This is an unsecured credit card for those with bad credit, however you cannot use it like you would a Visa or MasterCard. This unsecured credit card guarantees 100% credit approval, regardless of your credit history. Credit limits start at $500 and can go up to $12,500. Stay away from this one. Here’s why:

1. Although they tout 0% interest forever, there is a ‘one time processing fee’ of $129 to activate the card. Not so bad, huh? Well, be prepared. They also charge you a ‘nominal monthly fee of $9.95’, to keep the account active.
2. You are not getting ‘credit’ in the traditional sense of the word. What you are getting is unsecured ‘merchandise credit’. What does that mean? You are only allowed to use this ‘credit card’ at their online shopping website. Not only does this online store have an extremely limited inventory, what they do have is laughable and ridiculously overpriced.

Orchard Bank
This is a classic MasterCard with all the benefits. There is a cost associated with this unsecured credit card but it is a credit card nonetheless. Let’s take a look:

1. Orchard Bank charges an annual fee for the first year ranging from $0-$74. After that, the annual fee can be $35-$79. This is a variable rate credit card where APRs can range between 7.90%-28.90%.
2. Your Orchard Bank MasterCard accepts balance transfers. Although the interest rate fluctuates, keep in mind that unsecured credit card issuers are taking a risk by extending credit.
3. Orchard Bank rewards its customers with incremental credit limit increases when displaying good credit habits. This information is reported to all 3 major Credit Bureaus which will help you rebuild your credit.

First Premier Bank
This is another well known unsecured bad credit card. You should only consider this credit card if you cannot obtain an unsecured credit card from Orchard Bank. Facts about First Premier Bank:

1. The initial credit limit is $300.
2. They charge a one time processing fee of $95. The downfall here is that it must be paid in full before the credit card can be activated. They will accept payments over a 6 month period but you will still have to wait to use the credit card until it’s paid.
3. The annual fee is $75. This is deducted from your current credit limit leaving you with a balance of $225 available credit. This can be paid in increments of $6.25 a month however; you will be paying interest on the outstanding balance.
4. The APR is a fixed 23.9% on purchases and cash advances.

Unfortunately, bad credit makes for expensive credit. The number of unsecured bad credit card options is limited and costly. Most people are faced with this problem at least once in their lives. Hopefully, we can all learn from our mistakes, improve our bad credit and put the money in our pockets!

Unsecured Loans No Credit Check - How to Choose the Right Company for Unsecured Loans With No Credit Check [next] [back] Unsecured Credit Lines - Unsecured Credit Lines with Bad Credit or Bankruptcy

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