Unsecured Credit Cards – Getting an Unsecured Credit Card Inspite Of Bad Debts
There are basically two kinds of credit cards. There are unsecured credit cards and there are secured credit cards. A secured credit card depends on you depositing some money in an account first. You can then use the credit card up to the limit of what is in your account. An unsecured credit card does not depend on an account. It depends on your ability to pay your monthly fee. That is the kind of credit card that most people have and it is the kind that most people want.
If you have a bad credit history it will be difficult to get an unsecured credit card from most of the major providers. But having a credit card is a vital part of modern life. It can be very difficult to manage your financial affairs without one. If you want to make purchases on line, or buy tickets over the phone a credit card is essential.
So if you have made some mistakes in the past, and most of us do, how can you get an unsecured credit card? Surprisingly enough there are companies that specialize in this niche market. They provide unsecured credit cards for people with a bad credit history.
Obviously this is going to be more expensive than an unsecured credit card for customers whose credit rating is perfect. But it may be a useful option if you feel that you need a credit card like everyone else has in their wallet
The Imagine card is a credit card for people with a bad credit history. It is based on the principle that people who have made mistakes should be given the chance to rebuild their credit record. All applications will be accepted. Everyone gets a chance to try again.
It is run by Mastercard. So it has the backing of one of the big companies. Imagine is not some fly-by-night operation.
If you take out an Imagine card you will be given a low credit limit of $70 or $300 and you will have to pay an annual fee of $155. This seems expensive. But you have to compare it to other sources of credit.
The low credit limit will protect you from going over your limit. It may not seem much but it will enable you to make many essential purchases for which cash is not appropriate.
The main advantage is that it is a “real” credit card that will enable you to rebuild your credit rating. If you keep up the annual fee and the monthly repayments your credit record will improve month by month.
Over time the annual fee, which is the credit card company’s insurance, may be dropped. Once they are sure that you have developed a pattern of regular payments they will have confidence in you. That is what you need to achieve.
An Imagine credit card is a learning curve for you. You will be developing good financial management skills that will help you manage a higher credit limit. The temporary annoyance of having a low limit credit limit will soon be over.
This a medium term strategy for repairing your credit rating. One mistake does not need to mean that you are permanently scarred. There is life after bad debt.
Abhishek Agarwal
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