Preapproved Credit Cards for Bad Credit

People with poor credit scores can still use credit cards.

Individuals with low credit scores or poor credit histories in 2011 may be offered pre-approved credit cards by their bank or credit card company when their financial circumstances improve. To reflect the holder's bad credit rating and increased risk of default, these cards are often secured, meaning a deposit must be paid in advance. Secured cards attract higher interest rates and larger fees than standard credit cards. In addition, credit limits are lower, less benefits are available, and larger monthly repayments are required.

Orchard Bank Visa Cards

Issued by HSBC Bank Nevada N.A., Orchard Bank Visa Cards are aimed at people with poor or limited credit histories, with applicants able to choose from four cards depending on their circumstances. The secured Orchard Bank Secured Visa Card costs $35 a year, though that fee is waived for the first year, and customer deposits generate interest. The Orchard Bank Gold Visa Card costs up to $59 a year and applicants normally pay an account processing fee of $19.

Orchard Bank MasterCards

Similar to the company's Visa cards, the Orchard Bank Classic MasterCard range is issued by HSBC Bank Nevada N.A. and suited to people with low or bad credit scores. Unlike other secured credit lines, holders of the Orchard Bank Secured MasterCard benefit from interest on deposits and relatively low $35 annual fee that is waived for the first year. Meanwhile, the Orchard Bank Classic MasterCard costs $29 in the first year and $98 per subsequent year.

Public Savings Bank Classic Secured Visa Card

By reporting transaction activity to the country's major credit bureaus every month, the Public Savings Bank Classic Secured Visa Card is ideal for those seeking to boost their credit scores. Like all secured credit cards, this card is only available once a deposit is paid to the bank. The size of that deposit is the card's credit limit. The card attracts an annual fee of $50. The minimum deposit is $200, and the maximum $3,000.

Wired Plastic Pre-Paid Visa Card

Holders of this pre-paid card pay a monthly fee rather than an annual fee. In March 2011, this monthly fee was about $4. Unlike secured credit cards, this card features a rewards program with one point earned for every dollar spent. The points can be exchanged for music downloads and cell phone ring tones. Applicants must pay a one-off fee of $10, but credit and employment checks are not required.

BuyRIGHT Pre-Paid MasterCard

Issued by the company from which it takes its name, the BuyRIGHT Pre-Paid MasterCard attracts a $30 application fee. Holders are charged a monthly fee of $8 unless they choose to pay $1 per transaction. At least $20 must be initially loaded onto the card and subsequent deposits may attract additional fees if not made by direct debit.

References

• Frankford Financial: Bad Credit Credit Cards
• Lowcard$: Credit Cards For People With Poor Credit