In today’s tough financial environment, it is easy for people to commit financial mistakes. It could be a bad financial decision, a case of losing money, a bad habit or even a simple case of overspending. If a person is negligent and falters on his or her credit card or loan repayment, his credit ratings are hampered, thereby making it difficult for the person to accrue loans or credit cards in future.

However, all hope isn’t lost. There are credit cards available for people with a poor credit and they are known as Bad Credit Cards. Getting one of these can be tricky, but the approval requirements for the following cards are less severe. The options available for the same are secured credit cards, unsecured credit cards and pre-paid cards.

Unsecured Credit Cards

There are several organizations that will approve people with bad credit. However, as an applicant, you need to ensure that you’re aware of and are okay with the fees and other charges on this card. Since in such cases, the lender bears and increased amount of risk, the annual charges of such cards are higher than normal. The annual percentage rate for these cards is also high and is usually above 19.9%.

Secured Credit Cards

Unlike unsecured credit cards, companies offering secured credit cards require you to make an initial deposit. This deposit is then converted to a bond and the amount of this bond becomes your credit limit on the card. Everything else is the same; you get monthly bills for your purchases and spending and are to pay them within a stipulated timeframe.

Your deposit earns interest for the time you’ve held your card and is completely refundable should you close your card account on good terms.

In case you falter on your payments with this card, the money saved in the bond is utilized to pay off your debts.

Prepaid Cards

Prepaid cards, on the other hand are similar to a debit card. You are able to fund your card via your bank and use it like you would use any other card. It can be used at point of sale merchants, it can be used to pay bills, make payments and even at ATM Machines.

In further articles, we shall discuss each of these cards in details.

The reason, you’re out here, reading this post is that you’re probably looking for a credit card, but don’t wish to pay a deposit, as is often the requirement. It can be quite difficult to find credit cards for bad credit without putting down money upfront, as collateral. But if you know where to looks, and what options to explore, the market is laced with offers that might just be what you’re looking for.

On this website, our prime initiative is exploring such offers, reviewing them and then further explaining them to you.

The market traditionally offers two different types of cards for people with a bad credit history and it’s important for you to know the difference between either of them in order to avoid paying anything upfront.  If you have a not so good credit history, you’re generally given only two options – one, you get a prepaid credit card (also called a secured credit card) or two; you get a bad credit card.

Most people with a bad credit history just find out about prepaid credit cards and stop looking further. Since the general consensus is that prepaid credit cards are the only option left for them. But the fact is that, prepaid credit cards are not actual Credit cards. This is because they don’t offer you any actual “credit”. You’re required to fund these credit cards in advance and only then you’re able to use them. These cards are hence also called “secure credit cards” because of the upfront deposit you pay to “secure” the risks.

If you research in a more in-depth manner, you can see that there are cards that will fund the deposit directly from the credit line that approves you.

These cards are the credit cards for bad credit people, since they don’t require you to shell out anything from your own pockets.

Over the course of the next few articles, we will help you get a thorough understanding of how these cards work and even link you to certain offers, while we’re at it.