No Better Options? Get A Sub-Prime Credit Card

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).