Credit Cards For People With Bad Credit

Everybody will eventually have something happen to them that is out of their control. Their company can close and they can lose their job. Perhaps they might face a divorce or even a stolen identity. Should this happen, the only place you may have to start is at the beginning. It is then you will need to apply for credit cards for people with bad credit. There are several reputable lenders that will be willing to help a person re-establish their credit by using their credit cards for people with bad credit.

The High Price of Bad Credit

Although most people who have had to rebuild their credit ratings hate to admit it, they have to find credit cards for people with bad credit. Orchard Bank and Providian all extend credit to people whom have had credit problems previously. Their philosophy is that the consumer should have learned their lesson and should not be penalized by a derogatory credit score.

Granted these card companies are providing a helpful service to people whom have fell on hard times, they realize that the potential to help the person up comes with some financial rewards. These companies do charge a much higher rate of interest. In some cases, the interest rate could be as high as 25% or more depending on the overall credit score. Their willingness to provide credit cards for people with bad credit will ultimately help the consumer rebuild their credit rating and provide interest income to the company.

Alternative Ideas To Getting Credit

Although there are some unsecured credit cards for people with bad credit, there is another alternative to getting a credit card with bad credit. A secured credit card is usually a viable option since it allows the consumer to build a savings account where the amount of credit they receive is a direct match to the amount of money they have deposited.