Credit Cards for People with Bad Credit - Pros & Cons
Credit Cards for People With Bad Credit- Advantages
- Security deposit accounts earn some interest
- Prepaid cards can avoid debt while repairing credit history
- Timely payments can help rebuild credit
- Balance transfers can lessen debt
Credit Cards for People With Bad Credit - Disadvantages
- Limited choice of cards
- Usually must offer collateral to obtain card
- Lower credit limits
- Higher interest rates
- High annual fees
- Savings account must be established at bank and cannot be withdrawn from
- Banks must report to credit bureaus to help customers rebuild credit
- Usually needs a co-signer