Everybody knows someone who has bad credit history can get secured credit card which requires him to set up security deposit first before get the card. Are there any credit cards for bad credit with no security deposit? Most banks offer secured credit cards that may help but also weigh down applicants because of the upfront deposit. Those who need to apply for new credit must have money to get the card. You may ask why they don’t just use their money directly.
If applicants of credit card with bad credit history don’t want secured credit cards in order to avoid the initial deposit, there are complications to face. The first complication is they may get store card instead of credit card. Store card is nice but it has limited usability. Another thing is they get universal unsecured credit card that has high fees and interest rates. What if you can’t afford or just don’t want to make initial deposit, increased fees, and limitations of secured credit cards? Well, below are some options.
Store Cards Instead of Secured Credit Cards
Improving credit is an ideal way that leads to increase the approval for credit card. Improving credit will automatically reduce the credit risk. Yet, success may come with another problem. It is true that reducing potential credit risk is possible by choosing one which is less risky such as credit cards for bad credit with no security deposit or store credit cards. One of those less risky cards is unsecured credit card by Fingerhut.
It is way easier to get credit cards for bad credit with no security deposit from Fingerhut. It is possible because of a fact that applicant can use the card only with issuing store that limits applicant’s ability to increase much debt he cannot repay. This is why store credit card is less risky, especially for the card issuer. Compared to the other issuers of unsecured credit cards, Fingerhut is considered the best since its reputation score is nine of ten.
The Best Cards for Those Who Have Bad Credit History
That makes Fingerhut’s card become the best of credit cards for bad credit no deposit is the limitations. Its limitations are less noticeable compared to the other store credit cards. Fingerhut today is allowing the applicants to use their store credit cards to make many purchases like bedding, bath, tools, tires, and so on. Just like the other accounts, Fingerhut will also report the payment behavior to three credit bureaus in order to help them rebuilding the credit.
If the holders of Fingerhut credit cards for bad credit with no security deposit have responsible behavior and good credit history when using the store credit card, three credit bureaus can see and get the bad history fixed. Unfortunately, the account is going to charge the card holders interest on the balances that are carried month by month. Well, it is important for card holders to pay their balance fully in order to avoid the interest fee.