Often you might hear your friends or relatives crying over the fact that they have a poor credit score and are in need of a credit card. Well in most cases this is true for the majority of people who do not pay attention towards the credit score they maintain. There are companies offering credit cards which do not take your credit score into account.

Secured and Unsecured Credit Card Companies

Credit score is an important factor which you consider when you are using credit cards. If you default on your payments then the lender would report this to the credit reference agencies who would then add this remark on your file. Therefore, before applying for a credit card make sure you apply to those companies who do not take your credit score into account. Another option which might be available to you is that you could speak to your lender and ask them to revise the terms and conditions of your credit contract.

Criteria of Providing the Credit Card

Most companies those consider your credit score would decline you there and then. The reason for this might be the behavior you have maintained in the past of not making your payments on time. However, firms those who do not require a credit score, secure themselves by taking a collateral from you or by offering a lower credit limit. Collateral is a cash deposit or any other asset with financial value which the lender might ask you to deposit. Other option of lower credit limit means that even if you go onto default, their loss should be minimal.

Unsecured Credit Cards for individuals with Poor Credit Score

The spending patterns of people have forced them to have poor credit scores. Due to this reason, their preference for unsecured credit cards has risen compared to the secured one. Unsecured credit card companies offer them cards which might solve their short term cash problems, but not be a solution for the long term.

With unsecured credit cards, the limit is so low that it becomes difficult for people to address their long term issues. The advantage of such cards is that is resolves your short term monetary problem as mentioned above but it also has some drawbacks.

Costs of Unsecured Credit Cards

Unsecured credit cards come with lots of costs attached to them. For instance, if your limit is $250 then after deducting all the costs such as service fee, monthly charges etc. will you only with $100. This means that you might have $100 in hand but would have to pay $250 at the time you clear your dues. Therefore, it does posses a great deal of risk as well.

Secured Credit Cards for individuals with Poor Credit Score

This is another option for those who have a poor credit score. As the name suggest, secured credit cards are those which require some deposit payment to be made. This is suitable for those who wish to have to some extra amount in their hands to spend. For instance, if you deposit $200 which is also the minimum requirement then you would be allowed to spend more than that based on the limit you prefer. Therefore, the higher amount you deposit, the more you can use on your credit card.