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Finding a Card for Poor Credit: The Credit One Bank Credit Card

These days, your credit ranking/score and your use of unsecured credit products, are used to determine what type of borrower you are. Those who are considered very good borrowers have high credit scores, while those who may have had late payments, collections, repossession, or even bankruptcy will have poor credit. Most people don't realize it, but once your credit rating slips, you need to actively invest resources to attempt to bring it back up. Simply allowing your credit to imporve over time is one option; but why wait years to start rebuilding credit when you can build it faster in a matter of 6-12 months. By selecting a Credit One Bank credit card, and using it wisely, you can start adding positive credit information to your credit reports, improving your score month-by-month.

A Credit One Bank credit card helps to improve credit by reporting your usage history to the credit bureaus. For each month you keep your credit utilization below 30 percent and pay your bill on-time, they'll report positive history. However, if you over-spend on the card, use too much of youtr available balance from month-to-month, or miss a payment, they'll report this negative history. Thus, it's important to use any unsecured credit card, especially those for poor credit, wisely, so as not to hurt your score.

While many people with poor credit (or no credit) may qualify for a Credit One Bank credit card, this card may not be for everyone. If you've got extremely low credit, or currently have derogatory remarks on your credit report (like a collections issue), an unsecured card may not be right for you. There are two other options that may be availble to you.

Secured Cards
Secured cards are great because they possess two main features: (1) People with low credit scores will likely qualify for this card; and (2) Secured cards typically report to the credit bureaus, giving you a chance to rebuild your score. Some people don't like secured cards because the cardholder must submit a cash deposit (usually anywhere from $50-$200) before the card can be activated, and also because the credit limits for these cards tend to be relatively low. This is generally considered the best option for anyone with poor credit, especially someone who may not qualify for an unsecured card. While you won't be able to use this card to run up a large balance, and shouldn't use this for unneccessary purchases, if you use it wisely, you'll get better credit in a year or two.

Prepaid Cards
The other option available to those with poor credit is a prepaid card. These cards can be advantageous because: (1) They require no credit check to get; and (2) They can be used exactly like creidt cards. However, prepaid cards won't help improve your credit because the card issuers don't report your use to the credit bureuas. As well, some prepaid cards come with fees and high interest rates, making many people question why someone should have to pay to use their own money. Ultimately, if a higher credit score is what you're after, a prepaid card won't help, but it will let you use your own money to pay wherever credit cards are accepted, and may be a suitable substitute for a debit card.