When searching for an easy credit card there are two important things to keep in mind. The first is that you do have choices just because you have made some past financial mistakes it does not mean that you are limited to only a select card. There a multitude of options and you must decide which is going to be the best for you.
Second that you don't have to just live with a damaged report, in fact the fair credit reporting act a piece of legislation that was passed by Congress to protect you says that any item on your report can only be there for a maximum of seven years. There is no mention about the minimum amount of time an item can stay on your credit report. That sure as those you can have derogatory items removed from your credit report without waiting seven long years.
1. Unsecured
- this is a traditional credit card where you are extended a card with a
credit limit. You then go out and make purchases and make payments on
the balance on your card. This item on your credit report will hold the
most weight to help or to hurt your credit score because it will report
monthly to all three credit bureaus (depending upon if your making your
payments on time and using your card responsibly).
The drawback
to this type of card is your are looking at a low credit limit typically
between $300 - $500. On top of that you are going to be paying a very
high APR % such as 29.99%. Additionally there are upfront fees that will
be on your first statement. You will be responsible to pay these fees
even before you make a purchase. We do not suggest this route.
2. Secured - these cards are similar to traditional unsecured cards except you must first make a deposit into a bank account which secures your line of credit. After you make that initial deposit you'll then be issued a credit card with a credit limit corresponding to the amount of your deposit. For example if you make a deposit for $500 you'll be issued a card with a credit limit of $500.
Your deposit will earn interest and is FDIC insured. This deposit is fully refundable however while using your card your deposit acts as security for the bank. If you default on your monthly payments the bank will keep your deposit, therefore you will have a secured credit card.
3. Shopping - you should avoid these cards like the plague! These shopping cards are only able to make purchases at a specific retail store, website, or through a catalog. In other words they are not real credit cards, you cannot go to the gas station and make a purchase with these cards.
Instead where you make purchases from it is run by the same people that issued you your credit card. It's not hard to see that there is a conflict of interest here. We have heard many horror stories of individuals purchasing big lots quality products while being charged outrageous prices.
4. Prepaid - These are not credit cards and instead are prepaid debit cards. With these prepaid cards you must first make a deposit into your account before you can use your card to make purchases. This can be an effective way of managing your spending especially because you cannot spend funds that have not been deposited into your account.
These cards typically come with free direct deposit and free bill pay. If you are paying expensive check-cashing fees or purchasing money orders these two free benefits can save you hundreds of dollars annually.
We recommend a prepaid debit card while you take action to repair your damaged credit report. Specifically we suggest the prepaid AccountNow Gold Visa. They provide you with free direct deposit and free bill pay.
AccountNow is currently giving you a free $25 when you sign up for direct deposit. There is no credit check or check systems check.
Click Here to Apply for AccountNow Prepaid Card
Additionally we suggest you take action to improve your credit score. There is a lot of misinformation that says you must live with a damaged credit report however this could not be further from the truth! To learn how you can fix your credit report you can get a free credit consultation by calling 1-800-483-0256.