Which poor credit credit card is right for me?
There are three basic options for poor credit credit cards. The first is a prepaid card, which is little more than a glorified debit card. You deposit funds into your account, and your spending limit is then determined by this amount. There is no actual extension of credit, so this card will usually not be reported to credit bureaus. The second is a secured credit card, which is secured against collateral in the form of funds in a savings account. You deposit the amount you desire into a savings account, and this amount then determines your credit line. Some lenders might give you more credit than the amount in your savings account. These cards are sometimes reported to credit bureaus. The last type of card is an unsecured credit card. The credit lines on these cards start out small and periodically increase based on your ability to keep the account in good standing. Unsecured cards for people with poor credit usually come with higher interest rates and fees than normal cards.
