If you have bad credit and a poor credit history, then your last chance for a credit card may be a secured credit card or a prepaid credit card.
Last chance credit cards like secured cards and prepaid cards are designed for people who have had past credit problems or cannot get approved for credit cards due to financial problems.
Anyone can be approved for prepaid and secured cards regardless of their credit history and financial status, so these are the best option if you’ve been declined for credit cards in the past, as there are no credit checks and no employment requirements to be approved.
These poor credit cards can be used anywhere Visa or MasterCard cards are accepted, which allows you to pay your bills online, make phone purchases, rent cars, and make other purchases that require a credit card.
Both prepaid and secured credit cards are designed for people with a less than perfect credit history, however, there are some distinctions between these two types of bad history credit cards.
Secured Credit Card Information
Secured Credit Cards require you to deposit funds into an account to secure your line of credit.
For example, if you deposit $500 into a secured card account, you’ll have a $500 revolving line of credit.
Secured cards allow you to carry a balance on your card and make monthly payments, just like a regular credit card.
However, even though your line of credit is secured by your own money, secured cards still charge interest on your purchases, and these interest rates can be pretty high, so it’s not a good idea to carry a balance for a long time.
The benefit of secured cards is that they help you improve your credit score, because they report your account to the credit bureaus just like a standard credit card.
As far as the credit bureaus are concerned, there is no distinction between a secured card or a standard credit card, so if you maintain your account in good standing, secured credit cards can help you improve your credit score.
Secured Credit Cards
- ZERO – 0% FIXED APR on Purchases – No Intro Rates!
- ZERO – 0% Rate Won’t Change – Even If You’re Late!
- ZERO Hassles – Choose Your Credit Limit From $500 Up To $5,000
- ZERO Application Fees
- ZERO Worries – FREE Personal ID Theft Protection
- ZERO Delays – Timely CREDIT Bureau Reporting
Prepaid Credit Card Information
Prepaid Credit Cards also require you to deposit funds into an account to secure your purchases.
However, any future purchases you make on your prepaid card will be debited directly from your deposited funds.
So you can spend as much on your prepaid card as you deposit, but you must refund your account to make funds available for future purchases.
Some prepaid cards do charge small fees for purchase transactions as well as additional account fees that can be costly in some cases, but prepaid cards do not charge any interest on your purchases.
Most prepaid cards do not report to credit bureaus, so even though they are available to people with poor credit, they can’t help you improve your credit history in most cases, although some prepaid cards do also provide credit bureau reporting.
Prepaid Credit Cards
- No credit check required – 100% Approval
- Simple Pricing – Only 3 Fees with Direct Deposit
- No overdraft fees, interest fees or hidden fees
- Free Direct Deposit
- Free Online Bill Pay
- Free transactions and customer service*
Both secured and prepaid credit cards offer a last chance option for many credit consumers who need a credit card to make everyday purchases.
You may also be interested in Last Chance Loans for those who need alternative options for getting the money they need.