"In Spite Of Poor FICO Ratings, 2nd Chance Unsecured Credit Cards Are An Option"
by Joe Arthur


By applying for a 2nd chance unsecured credit card, you can still enjoy the benefits of a credit card even if with a bankruptcy record or have no good credit record. It could be easier to secured Visa card anytime. However, what you want to also consider is a credit card that does not require you to put money down and at the same time allows you to increase your credit score.

This article will provide you the pros and cons of applying for credit cards for those with bad financial records. An unsecured 2nd chance credit card functions in an identical manner to a real credit card which means as soon as it is approved, you will get a line of credit right away. With an unsecured card, you do not need to deposit your money to help the use of the card.

Unsecured credit cards work just like any Visa or Mastercard and you can use it where these two cards are accepted as well. The instant credit limit that you get can be used however you want. But whatever charges that you make to the card, those charges need to be paid. Payment can be made by minimum or full payment to avoid interest being charged to you. Mentally, it is a good feeling to know that a financial institution is able to support you by giving you a line of credit

If you have a an unsecured 2nd chance credit card and use it responsibly, meaning that you at least keep up with minimum to full payments every month, then you have a good chance to build up to an excellent credit history. A proven track record of favorable on-time payments will contribute to an increasing FICO score for you over time.

Your on-time payment activities will certainly sent to the credit agencies A record to the card transactions are sent to credit agencies for instance, TransUnion or Equifax and Experian. Once you have demonstrated credit worthiness, you canget back to a good credit rating. This really is a main advantage that is not obtainable with prepaid debit card or various secured credit cards.

With great things come many disadvantages and that is the same with having an unsecured 2nd chance credit card. The main disadvantage of this card is the onerous credit terms which may well make you want to give up on getting one. Many people stop short of getting one because of the high rates and fees. One of the terms is that they will impose an annual fee on top of the application fees you pay to get a card. With the high interest charges, you might find that your line of credit does not make any sense due to the high cost of using it.

Without doubt, there are positives and negatives to 2nd chance unsecured credit cards. It is a decision that must not be taken casually. An individual must also be cautious when utilizing the card. Particularly, when it comes to regular payments to avoid paying the super-high interest rates or being accorded a damaged FICO score for missing payment due dates.

If you believe you are able to attain this, then 2nd chance unsecured credit cards do have their benefits. For sure, you do not need to carry wads of bills everywhere you go just to be able to make the essential purchases. Far more importantly, utilizing the card in a disciplined manner will provide you with allow you to redevelop your FICO score.

Contact the Author

Joe is a professional writer and research analyst. He looks forward to sharing good ideas through his writing.

Joe Arthur

Site: http://www.secondchance-checkingaccounts.com/unsecured-second-chance-credit-cards.html

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2nd Chance Unsecured Credit Cards

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