High Risk Credit Cards for People with Bad Credit Score

A credit card company or a bank will perform a much demanded criteria before they agree on someone’s credit card application. Those who can’t show their ability and willingness to pay for their debt will most likely get rejected. Those are high risk people where in most cases they have bad credit score that makes them unable to use the common credit card. But, there is other option and that is by using high risk credit cards. 
 

There are several types of high risk credit cards that people can apply and the first one is secured credit card. People can get their credit card if they use their property or their car as the collateral. Some credit card issuer also uses money as a security guarantee, so just in case the credit card owner can’t pay their debt, their collateral will be taken away.

For those who don’t have anything to put as collateral, they can choose other options of high risk credit cards, the prepaid credit cards and subprime credit cards. Prepaid credit card work similarly with secured credit card, where the user must pay in advance with cash deposit. They are not allowed to spend more than what they have and they won’t be charged with any interest. In the other hand, subprime credit cards work without any collateral or cash deposit but it has high interest rates along with different kind of fees.