We have two different types of credit cards. These include secured and unsecured credit cards. Secured credit cards require you to deposit some amount of money before getting one. The amount of money you deposit in your account acts as a collateral to the credit you borrow. On the other hand, unsecured credit cards do not require you to deposit any amount of money security. Different credit companies need different scores to give you credit. Most companies can provide unsecured credit cards for 600 credit scores.
Unsecured credit cards attract high-interest fees as well as other charges such as monthly fees, transaction fees, and so on. However, the cards are useful to help you recover from a bad credit situation. Most companies giving unsecured credit cards are there to help you grow from a bad credit situation to an excellent credit position. When going for unsecured credit cards, you definitely must be facing a bad credit situation that needs urgent rectification. At this time, only a few financial institutions can give you loans or credits.
One thing you need to be sure of with these cards is that it is easy to gain high credit scores within a short time. Many have several ways on how to improve your credit score in 30 days. What you need to do is to follow their laid down terms and conditions to succeed. It is very embarrassing to find yourself in such a situation and more so when you need financial help. But all in all, restarting all over again does not harm.
What are The Things To Observe To Avoid Bad Credit?
There are several things you should observe to avoid bad credit scenarios. First of all, you should ensure that you borrow money that you can repay. You should always have a clear budget for your monthly budget before borrowing any money from your bank.
Borrowing a lot of money than you can manage to pay strains you financially, and sometimes you may find yourself skipping the payment dates. Moreover, never borrow when you are not sure how you will repay the loans. Defaulting a loan affects your credit severely.
Secondly, do not take too many credit cards. I understand that having various kinds of credit cards can contribute positively to your credit score increment. However, if you take too many of them, you might end up forgetting to utilize others or find yourself unable to repay debts for some of them.
Failing to pay a credit card debt or failing to use a credit card also lowers your credit score. Make the cards active all the time. Even if you do not want to spend, you can transfer money using the routing number and account number from one credit card of one financial institution to another credit card of a different bank.
Another thing you need to do is to always keep pon checking your credit report from the credit bureaus. Find out if your identity card details have fallen on the fraudsters’ hands. Some people use other people’s identity to open bank accounts and then borrow loans and vanish without repaying. You are the one to be followed on that, and this can severely affect your score.
Moreover, follow up with collection accounts if you happen to have one. Settling the debt is not enough as collection accounts can remain active for some time, even after clearing your debt. Collection accounts have adverse effects on your credit score.
How Do You Use An Unsecured Credit Card?
Unsecured credit cards are just like other credit cards you obtain from banks. There are many things you can do with your credit card. First of all, I can transfer money from another account to my account if at all, I have another account to repay my monthly credit debt. A credit card requires you to have a checking account that can receive money from other accounts.
Unsecured credit cards are handy when it comes to buying items at shopping centers and fuel stations that accept the cards. Many of the credit card companies give cash backs and points when you shop at designated shops.
Also, you can transfer money from one credit card to another just like you can transfer money from one debit card to another. It means that you can use one credit card to repay a debt of another credit card. Again, you can send money to someone else using your credit card and repay when the time comes.
What Should You Do To Get An Unsecured Credit Card?
The first thing you need to do is to identify the bank of interest. Which financial institution would you like to use to have a card with? Moreover, discover various cards and their terms and conditions.
The next thing you need to do is to open a checking account. Unsecured credit cards allow you to open a bank account with no deposit required. As soon as your application goes through, you just get your credit card and start enjoying your shopping moments.
During registration, there are things you should provide, such as the government identification document, passport size photo, email address, physical address, and phone number.
Once you get your card, you can thus start doing shopping as well as sending money to other people. With a credit card, you can recharge a debit account as well as a prepaid card. For your information, you can send money to someone without a bank account as long as he or she has a prepaid card. Prepaid cards do not necessarily require one to have a bank account.
Which Are The Top 9 Unsecured Credit Cards For a 600 Credit Score?
I have sampled various unsecured credit cards that can allow you to apply for them as long as you have a credit score of 600. My research enabled me to come up with nine unsecured credit cards. Have a look at them.
1. Fingerhut Credit Account
The card allows you to apply within a short time. Moreover, the decision by the institution is usually within a very short time. Once you get the card, you can start shopping from DeWalt, Samsung, and KitchenAid. You are not going to pay an annual fee upon getting the card.
Moreover, you will get a credit limit of $300 as soon as your application goes through. The card is very open to those with poor credit. You are going to qualify for the card if you need it. The company reports to the three major credit bureaus of America. You should be sure that you will increase your credit score within no time. See more.
2. Capital One QuicksilverOne Cash Rewards Credit Card
If you are interested in improving your credit score, then you should be sure that getting a Capital One QuicksilverOne Cash Rewards Credit Card will help you very much. With this card, you will be able to get 1.5% cashback on all daily purchases.
If you repay your first five credit debts on time, then you get a credit limit increment. Moreover, never worry if you ever lose your card as the company has put high-security measures to ensure no fraud incidents. The card requires you to pay APR of 26.99% (Variable). In addition, you will be paying an annual fee of $39. See more.
3. Amazon Store Card
The card is among the best credit cards ever. You will be able to earn 5% cash backs on all purchases you make on Amazon. Moreover, you will get special financing on orders of $149 or more. There is no annual fee for this card.
However, the prime fee may apply. If you are an Amazon Prime member, you will be paying $119 annually. The card also allows you to deposit collateral and take it as a secured card. Hurry up and get this card to start rebuilding your credit score today. See more.
4. Capital One Platinum Credit Card
With this card, you pay no annual fee. Moreover, you can access your account 24/7 without any problem. You should have a smartphone and a stable internet connection. However, you can access it using your desktop or laptop. Again, all fraud possibilities are well covered.
The company has put in place high-security measures to curb fraud if your card gets lost. Moreover, enjoy a credit limit increment if you make the first five payments on time. The regular APR is 26.99%, which is variable. Make your credit score straight with this card now. See more.
5. Target Credit Card
A Target Credit Card is a good card to make your credit score straight. The card gives you a credit limit of $250 once you succeed in applying for the card. Moreover, you will get free 2-day shipping on Target.com purchases as well as extended returns.
Furthermore, the card gives you coupons for eligible items, including from its popular Cartwheel app that helps you to save a lot of money with time. The card allows you to save 5% every day. Moreover, you pay $0 as an annual fee at target.com. The regular APR is 23.90% as of July 2019.
6. Indigo Platinum Mastercard
With this card, previous bankruptcy is allowed. Poor and fair credit scores are very much applicable to this card. Moreover, you will need to pay an annual fee of $0-$99. The regular APR is 2490%. The application process is speedy. Moreover, you will get a quick response on whether your account application is successful or not.
Furthermore, you will be able to access your account online for free. With this card, worry less about any fraud possibility. The company has put measures to prevent fraud in case you lose your card. The card is accepted at over 35 million locations worldwide. See more.
7. Milestone Gold Mastercard
If you want to build your credit score, then you can consider the Milestone Gold Mastercard. The annual fee ranges between $35 – $99. The card accepts weak, as well as fair credit limits. So do not worry about your credit as you will find it easy here.
The application for the card is straightforward. The response also comes in a matter of minutes; thus, you will not keep waiting for hours. You can as well suggest which design you want for your card and have it processed very fast. Do you like the card, and then get it now. See more.
8. First Access Visa Card
The credit card does not need you to have a good credit score to get it. A credit score of 600 will be okay. The application is easy and happens online using either your smartphone or your computer. If approved, you will have to pay a program fee of $95.00.
Moreover, you will access a credit limit of up to $300. The bank of Missouri that issues the card is committed to helping people with bad credit to recover from their poor scores to better credit scores quickly. Moreover, do not worry about the security of the card as the process happens under a secure process. See more.
9. Firestone Credit Card
Although the card does not give rewards to the users, it can provide you coupons as well as special financing when you meet the purchasing minimum of $299 of Firestone products. Moreover, you will pay a $0 annual fee upon qualifying for the card.
If you have previous bankruptcies, you can apply for the card and qualify without facing issues. Bad credit scores also fit here. The best thing with this card, which is also present with other cards, is the monthly reporting to the credit bureaus, thus assuring you of faster improvement of your credit records. See more.
Unsecured credit cards are very easy to get since you do not need to deposit any security. Moreover, they help you to regain your credit score within the shortest time possible. The only disadvantage is that most of them give you low credit limits. Despite that, the cards are beneficial when it comes to raising your credit scores. Pay on time and spend below the credit limit to ensure that your score shoots up fast.