Credit Cards for People with Bad Credit – Secured vs Non-Secured

By Jim Peterson on January 5, 2011
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Digital News Report – Credit cards have become a necessity of life, especially if you want to reserve a hotel room, rent a car or make some online purchases. Over use of credit cards can be a problem, especially if the borrower is unable to pay back the debt.

Banks consider the borrowers credit score before they issue a card. If the score is too low, most banks will not issue a credit card. But there is a whole segment of lenders devoted to people with bad credit.

There are secured cards and non-secured cards with high interest rates. The secured cards typically have a lower interest rate while issuers of unsecured cards may charge a higher rate because of the risk.

The First PREMIER® Bank Gold Credit Card is a non-secured credit card designed for people with poor and bad credit. The interest rate is high, but no security deposit is required.

The APR rate is 59%. There is a $75 annual fee and a $35 fee for late payments.

Paying bills on-time can improve the borrower’s credit score. First Premier reports payments to the consumer reporting agencies so late payments can have a detrimental effect on the cardholder’s credit score.

There is a one-time $45 processing fee for this card.

By Tina Brown

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