How to Compare Bad Credit Credit Cards

by : Eric Wasselman

What exactly are bad credit credit cards? These credit cards are design especially for people with bad credit who need to re-establish their credit. Most persons applying for this type of card need to first decide between a secured or unsecured credit card. A decision on whether to choose a secure or unsecured credit care is dependent on many factors, chief of which is the stability of your income.

A secured credit card is issued based on a deposit being given to the issuing body. In many instances the credit limit on the card is slightly lower than the deposit or the same. An unsecured credit card on the other hand is not tied to any collateral given to the bank. When an unsecured card is issued to someone with bad credit other fees may come into play, it is there important to check out what the catch is.

Like with all other types of credit cards, bad credit credit cards can be compared based on APR, annual or monthly finance charges and whether or not you can get periodic credit increases.

Also, look at whether or not the credit card issuer send monthly credit reports to the different credit agencies. By submitting a credit report to the credit bureaus, the bank or credit card company is helping to build back your credit. Most of these credit card issuers report to three credit agencies, but there are others who claim to report to at least four such agencies.

A few credit cards in this category also offer cash advance withdrawals which can be a lifesaver in a crunch. Other benefits may also apply such as rewards.

Having great 24-hour customer service is also an important comparison tool. This is especially beneficial to those card holders who are not meticulous in keeping track of their spending. Along with this is the facility that allows online tracking of your account. These two features can help the user to know exactly how much they have spend and how much more than can spend at any given time.