Unsecure Credit Cards

Of the unsecured credit cards, Visa is recommended. It is widely accepted all over the world and has online account management. Ideally, an unsecured card will have a low or no set up fee. You may even get cards with no interest for the first six months. Companies issue these cards based on credit history and earnings potential.

Unsecure credit cards are not tied to property so if the cardholder stops making payments, the property can't be repossessed. However the company can sue for the amount owed and garnish wages. If the person declares bankruptcy, the company probably won't get the money back. A secured card is guaranteed against something valuable. This could be money in an account or held by the issuer. Some fully secured cards are means to build credit. However many secured credit cards are only partially secured. The card user pays an amount of money, and the issuer sets up a credit limit that can be twice the deposit amount.

However many experts caution about some unsecured credit cards. They say they come with large fees for customers with poor credit or damaged credit. With all the fees, the credit line could be as low as $100. The fees include an application charge, set-up fees, an acceptance fee, the annual fee, and a monthly participation fee.

Experts suggest that they go for secured credit cards to build or rebuild credit. The fees on secured cards may be lower than those on unsecure cards but still high. Avoid secured cards with processing or application costs. Use secured cards to rebuild credit, not get in debt. Make sure the payments are manageable. After a while of prompt payments with a secured card, the customer may qualify for an unsecured card with a lower interest rate.