Credit card options for consumers who have a poor credit history may be limited in some instances due to the fact that finding affordable lines of credit can be hard for an individual with a bad credit score. However, there are reports that have indicated that bad credit credit card offers may be on the rise, but there are also alternatives to traditional unsecured credit cards that may offer a line of credit to someone with a poor credit history.
A report on SmartMoney.com has stated that the opportunities for subprime credit card offers may pick up in 2011 as there are indications that borrowers are finding themselves in a position where they can pay back their consumer debt or simply handle credit responsibly. Obviously, consumers who may have a poor credit history have found it difficult to find borrowing options in the past because many banks have tightened their lending practices and even for individuals in a decent credit position, finding an affordable credit card or even a line of credit at all was sometimes quite difficult.
Yet, offers for cardholders who may not be in an optimal financial position may be on the rise as card offers are becoming more available because many financial institutions see that setbacks in the lives of many consumers were a result of the economic downturn and unemployment. Some consumers have taken a big hit to their credit history and score simply because they lost their job and income that was previously allowing them to meet various financial obligations.
However, even if these credit card options are not available for someone with a poor credit history and bad credit score, secured credit card opportunities are one of the more popular options for either repairing a bad credit score or establishing a good credit history for someone who may be beginning their financial life. While secured credit cards do require collateral, consumers who are in a position to financially handle credit card use responsibility should be able to offer up a deposit of a particular sum of money and, as a result, get a credit card with a line of credit equal to their collateral and begin repairing their credit history and credit score.
While these credit cards for individuals with a bad credit score and a poor credit history may become more prevalent, consumers must still not only look around for the best offer on these types of cards, but need to make sure they read the fine print of a credit card agreement as low introductory rates on a subprime credit card may jump to a much higher and unmanageable rate in the future.