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What to look out for? Bad Credit Card Application Fees?
If you have bad credit and need a credit card, chances are that you have to apply for a credit card that is targeted specifically to people like you. However, these credit cards come with higher than normal fees. You should be aware of these fees before you apply for card.
Application/Processing Fee - Most "bad credit" credit cards charge you a one-time non-refundable application fee when you apply for the card. This fee could go as high as $150.
Annual Fee - Unlike regular unsecured credit cards, most bad credit cards charge an annual fee.
Monthly Maintenance Fees - In addition to an annual fee, you may be charged a monthly maintenance fee (usually around $6 to $7). This simply adds to the cost of maintaining your credit card.
Does the credit card report to the three major credit bureaus - Before you apply for a sub-prime credit card, make sure that the credit card reports to the three major credit bureaus - Equifax, TransUnion and Experia. This will help you to rebuild or build your credit history.
Recommended Bad Credit Credit Card
The card that we recommend for those with bad credit is the Orchard Bank MasterCard® as it has the most reasonable fees among all the sub-prime credit cards available in the market today (see chart below). Unlike other cards, Orchard Bank actually looks at your credit history and approves a card that is suitable for you. Hence, if your credit is really not that bad, you may even get a no annual fee Orchard Bank Prime Platinum Card with a 0% APR deal for six months! Because Orchard Bank is owned by HSBC, there is a clear card upgrade opportunities when your credit improves (which means you will not be stuck with cards with annual fees).
If you are looking for a card with a relatively easy approval, then you might want to consider the Tribute Mastercard® instead. Based on our stats, approval rates are much higher for this card compared to the Orchard card.
Unsecured Credit Cards for People with Poor Credit
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