Cash and liquid finance crunches are some of the severe problems plaguing the lives of people across the globe. People have started abstaining from any service that has a charge, fee, deposit, or even a down payment. Apart from the decrease in liquid cash, the economic recession of 2007-2009, has left scarred bank statements and eroded credit reports. Bad credit loans, low-interest debts, and low APR are some such facilities that have been introduced in the market.
Credit Cards for Bad Credit
Credit cards are issued in accordance with credit reports, ratings and history. When it comes to card processing, the companies are very strict about their requisites regarding the score. The credit card offer, your APR, and interest rate all depend upon one single factor, your credit report. The better your score, the better is your APR, the better is your payment history, the higher is your spending limit, and the better are terms and conditions.
The post recession tides have however turned crimson and there are very less applicants who have a good report. Credit card companies, have been successful in introducing cards such as low fixed rate cards and ones for a bad credit history, for people who have unfortunate credit reports. Such cards are either secured, or have a low but fixed rate of interest. An addition to such cards are ones that require no deposit, specifically aimed at people with a bad score.
Credit Cards with No Deposit Required
As the name itself indicates, there are two principal characteristics of such a card. Firstly, it is given to people who have a bad score. The ones that range from 500 to 619. Such cards principally, do not need any security deposit. However, since they are given to people who have a bad credit report, there is a strong chance that the company might demand some security, such as a car. This asset is to be pledged to the company and upon a particular number of defaults, it can be confiscated. These cards are very hard to acquire and people with stable jobs and a significant income are granted with them. The rate of interest or APR (Annual Percentage Rate) may differ from company to company. Some companies may have a fixed APR or some might also have a variable one, with luxurious purchases costing a small fortune. Personally speaking, I would prefer cards with a fixed APR and no deposit. The key for keeping the expenses at bay is to purchase some essential items such as grocery or fuel with the card. Since the card has a fixed APR, you will be paying the APR of the same amount every month. Calculate the expenses in such a way that you will not have to pay much of an APR, unnecessarily.
No deposit cards are without doubt a great offer, however be careful, and weigh the pros and cons before even applying for the card. This card may put you back in debt.