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TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Credit Card Alternatives for Poor Credit Scores

Lax credit rules, over spending, a weak economy and a startling number of unemployed workers have many consumers licking their financial wounds. Starting over financially is no walk in the park but is a necessity to get back on your feet and headed in the right direction.

Don't Over Apply
First of all, keep in mind that if you're not having any luck with applying for a credit card with the traditional banks - don’t continue to apply. Each time a credit check occurs you potentially impact your credit score further.

Credit Card Alternatives
This may be easier said than done. Many lenders will reject applications for credit from those with poor credit. But that doesn’t mean you’re completely out of options. Having access to a MasterCard or Visa is necessary in many situations and doing without is nearly impossible for some. Consider these alternatives:

  • Prepaid Cards are one option for those unable to qualify for a credit card. Essentially they work independently from your credit score and do not impact you positively or negatively on your credit history. The basis of a prepaid credit card is that, for a fee, you may “load” the card in advance via a cash payment and then are able to use it as needed. Again, prepaid card companies will not report your responsible spending to reporting agencies but will help you learn to stay within your budget and get you into the habit of only spending what you can afford.
  • Secured Credit Cards are similar to a prepaid card but do work in conjunction with your credit score. Typically a customer is able to obtain a secure credit card via a cash deposit. After several months of making monthly payments and staying within the credit limit, a secured credit card company will often issue a line of credit that is more similar to an unsecured credit card. This is considered a starter credit card to help get you back on your feet.
  • Bad Credit - Credit Cards are specifically designed for those with poor credit history and a low score. Some companies may still be willing to issue a line of credit. HOwever, be prepared for hefty fees and penalties of any credit card you obtain. Credit card companies willing to risk a line of credit to someone who has been historically irresponsible are going to charge fees.. Annual fees can range from $50 to several hundreds of dollars and are hard to avoid. Credit limits on these types of cards are typically very low and may even require collateralization.

Establish a Payment History
Once you’re able to gain access to even a small line of credit treat it with the upmost importance. Demonstrate that you can make monthly payments on time each month and spend only within your credit limit. This practice done consistently will eventually earn you a larger line of credit at cheaper interest rates.

Prepaid travel card or travel credit card: Which is better?

The simplest option is to take the debit card attached to your current account and slap it down in bars, restaurants and shops, just as you do at home. There is a drawback, though. Debit cards have ...

Published:  Mon, 22 Apr 2019 04:07:27 GMT



What Is a Secured Credit Card? How Is It Different From an Unsecured Card?

Secured credit cards vs. prepaid debit Prepaid debit cards seem similar to secured credit cards. You have to pay money before you can use the card, and they typically have a Visa, MasterCard or ...

Published:  Tue, 16 Apr 2019 13:56:00 GMT



Benefits of travel credit cards come at a cost

Travel credit cards essentially help you earn rewards you can use to make your travel relatively affordable. Some prepaid travel cards also store money in foreign currency. According to a report, ...

Published:  Mon, 22 Apr 2019 03:19:00 GMT



The New Prepaid Rule is Here. What Now?

At a high level, the Prepaid Rule amends portions of the Truth in Lending Act and the Electronic Funds Transfer Act by extending a number of credit card-like protections to "prepaid accounts" : ...

Published:  Tue, 23 Apr 2019 14:43:00 GMT



This Week In Credit Card News: How To Easily Lower Your Card's APR; Common Mistakes With Rewards

[CNBC] Prepaid Phone Cards Just Got Bank-Level Protection A sweeping ... [Help Net Security] Millennials Are Racking Up Credit Card Points. Here's How That Could Backfire Almost 40% of rewards ...

Published:  Fri, 12 Apr 2019 12:21:00 GMT



5 Common Credit Card Scams to Watch Out For

They might threaten to have you arrested unless you immediately pay the debt using a credit card or a prepaid debit card. This scam is best avoided by knowing what the IRS won't ever do. Specifically, ...

Published:  Mon, 15 Apr 2019 23:02:00 GMT



Prepaid Credit Cards

Applying for a prepaid card using Money Expert is much easier than applying for a standard credit card since credit checks are not necessary. Simply have a look at our comparison tool and select the ...

Published:  Fri, 12 Apr 2019 09:38:00 GMT



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