Comprehend The Details About Unsecured Credit Card

Credit cards now are definitely indispensable things for modern individuals. With a credit card in hand, people can obtain more convenience as well as a lot of bonus rewards. Now in the market people can find an increasing number of various credit cards with different forms and shapes. Among the so many kinds of wonderful credit cards, the unsecured credit cards are now enjoying a very famous reputation. Read on and you will learn more favorable details about unsecured credit cards.

Unsecured credit cards are typical kinds of credit cards issued by banks and financial corporations to help people with bad or poor credit history rebuild their credit scores. Unlike many other kinds of credit cards, unsecured credit cards do not have any requirement on credit scores for the applicants. That is, people are allowed to get an unsecured credit card even when they have no or poor credit scores.

How Unsecured Credit Cards Help People?

Applying for an unsecured credit card is a very good way to improve our credit scores. We all know that most kinds of credit cards will require good or quality credits for the card holders. Usually, most credit cards require the applicants to own a reliable credit score (such as 600 or more). Sometimes they are also available to zero credit owners. But very few credit cards allow applicants to have bad or poor credits. Designed to help rebuild credit history for people, unsecured credit cards are perfect choices for people with bad credit histories.

Different from secured credit cards, unsecured credit cards do not have limitations on collaterals or guarantees. This makes it much easier for individuals to get access to unsecured credit cards. Besides, this also saves a lot for the applicants. The card holders would save a lot of time, energy and money for the application process. When we are using the unsecured credit cards, we are able to earn certain credit points for every purchase made by the card. Every month the unsecured credit card issuers will report the details about our cards to the three major credit bureaus (Experian, Equifax, and TransUnion) in our country. Thus they help calculate the scores to build or repair our credits.

Basic Features of Unsecured Credit Cards

Compared with other types of credit cards, unsecured credit cards come with many more benefits and advantages. The following is a brief overview on the basic favorable features of unsecured credit cards:

• Low Annual Fee – All the credit cards will charge some annual fees for the holders. Usually the fee could be as high as $100. For unsecured credit cards, the annual fee is no more than $100. Some card issuers even do not ask any annual fee.
• No Initial Application Fee – Many credit card issuers charge some application fees. But unsecured credit cards do not have any limitation on application fee. That is, we do not need to pay for using an unsecured credit card.
• Competitive Credit Card Rates – The credit card rates for unsecured credit cards are quite low compared with other cards. Usually, the credit card rates are much lower than 10%. Plus, the card owners do not need to pay for any interest rates if they are able to pay off the debts before the deadline date.