Posts Tagged sub-prime credit cards

For most folks with bad credit scores, getting an unsecured credit card will usually be out of reach.  While it doesn’t hurt to try, realize that more inquiries into your credit ratings will just serve to bring it down even further.  If you really want to try getting an unsecured card even at your present credit standing, just apply to one.  If it doesn’t work fine, just get a secured card, in the meantime.

Of course, you can use the secured credit card to start building up your credit ratings.  Just follow the typical guidelines for responsible credit card use - keep low balances (or zero, if you can manage it), always pay on time and never go over your credit limit.

According to most financial experts, people usually need at least three revolving credit accounts in order to maximize your credit score.  As such, it is highly recommended that you try to get two more cards after you’ve been using the secured one for a while.

Wait at least 3 to 6 months before trying to get a second credit card.  Similarly, go for a sub-prime card, as well, for your second account - it’s going to be far easier as your score is unlikely to have gained massive improvements yet.  After using both credit accounts for at least four months more, you can then apply for an unsecured credit card and actually have a good shot at getting approved.

Patience is key but the rewards should be worth the wait.

If you have bad credit and are looking for a credit card, Orchard Bank has some of the best offers you can get. We’ve previously written about the Secured MasterCard from Orchard Bank which is what you can expect to be approved for if your credit really is at the bottom of the ratings. Depending on the company’s assessments of your risk factors, though, it’s possible to get approved for an even better card than the secured unit.

What credit cards can you hope to get approved for from Orchard Bank?

1. Orchard Bank Secured MasterCard

Read our review of Orchard’s secured MasterCard here.

2. Orchard Bank Gold MasterCard

If your credit is bad but not terrible and your credit risk factors don’t appear too unseemly either, you can get approved for an unsecured credit card. Credit limit won’t be too high but the terms will be pretty reasonable. You’ll be required to pay an account set-up fee of $19 and an annual fee between $39 and $96. You can get an APR between 8.9% to 18.9% (most likely you’ll get slotted into the higher end though).

3. Orchard Bank Platinum MasterCard

Another option you can get approved for is the Platinum MasterCard which, unlike the two previous choices, won’t require you to pay to have the account set up. You can also get the extra benefit of no annual fees - although most will likely get between $50 and $72. APR ranges from 8.9% to 18.9%.

4. Orchard Bank Prime MasterCard

If your credit rating is actually better than you expected, Orchard Bank will approve you for the Prime MasterCard. The card has no annual fee and APR is a fixed 15.99%. It carries a few extra benefits, including 0% introductory APR for the first six months.

If you have bad credit scores, getting a credit card can prove an exercise in futility. You can fill out all the card applications you want - getting approved isn’t likely to happen unless the fates suddenly align in your favor.

In case you really need a credit card, though, for whatever purpose, your best bet is a sub-prime credit card. Laden with less attractive features than regular credit cards, they might be able to serve your purpose - albeit not at the best conditions.

When you’re trying to build up your credit score back to respectable levels, a sub-prime card with low credit limit can help you in your quest. To ensure you get that benefit, make sure that the credit card issuer reports back to the three credit unions (Equifax, TransUnion and Experia) before applying to one.

Fees And Charges

Credit cards for people with bad credit are usually laden with fees considerably higher than normal. Similarly, other terms are likely not as good as what’s on tap elsewhere. Keep that in mind before signing up for one - the cost of maintaining a card like this will be high.

Most credit cards in this category will extort charge you a one-time non-refundable fee the moment you send in an application. It’s not cheap either with some cards charging as high as $150. Remember that it’s non-refundable, which means that money’s gone even if you are eventually disapproved.

Annual membership fees will be high, as expected, with little options in getting it waived. Even worse, most sub-prime credit cards charge a monthly maintenance fee that can add up (around $60 to $80 a month).