There are both unsecured and pre-paid credit cards available for the self-employed and those with adverse credit. Even though the rewards and APR terms may not be as attractive as those available for people with excellent credit and stable income, these credit cards offers are still the best on the market currently. You can avoid bad credit by paying your bills and credit agreements on time from now onwards.
Capital One Classic Visa Credit Card
The Capital One Visa credit card is suitable for students or the self-employed. These people usually have no credit history or even bad credit if they have made some poor financial decisions in the past. The maximum credit limit is initially set at $2,500 and the APR is 34.9%. This may sound a lot but is actually quite low when you compare among the other bad credit credit cards. Anyway, you are not supposed to carry a balance for months. Just use the card prudently, and pay off the entire bill on time every month. Your credit limit can be increased after a few months. After that, it can become a good financial tool, instead of relying on online emergency loan lenders al the time.Aqua Visa Credit Card
The Aqua visa credit card offers a credit limit of $2,000 and is easy approved for people with bad credit. The APR is 35.9% on outstanding balances, but there are no annual fees so it is quite cheap to use for credit building. If you pay off the entire balance every month, you can benefit from 51 days of interest-free credit on purchases.Vanquis Credit Card
The Vanquis credit card has a 39.9% APR but has no annual fee. Even though this is more expensive compared to the Aqua Visa Card, the credit limit is based on your individual affordability and not fixed. The interest-free credit period is longer, at 56 days which is why the Vanquis credit card is the best for self-employed who have inconsistent income and need some financing from time to time.If you do not require any credit, you may as well use a pre-paid credit card. These look like normal credit cards and allows you to performs the same financial transactions except there is no credit given by the banks. There is no credit limit, but you are allowed to use whatever amount you have in the card, which is loaded with your own money. The main advantage of pre-paid credit card is that you have no chance of accumulating debt, since the bank is not lending you any money on credit.
Pre-paid credit cards usually have an annual fee and fees for loading money on to the card. You should compare the terms and conditions on pre-paid credit card offers in order to find the most suitable one that suits your situation. Use such cards if you have facing problems curbing your spending habits.
Both bad credit and the lack of steady income can reduce the type of credit cards available for you, but seriously speaking, it is not a big deal. Choose a pre-paid credit card if you have a lot of debts and have problems sticking to your budget planning. Choose an unsecured credit card for bad credit if you want to rebuild your credit score, but you need to be self-disciplined to pay off your card balance in full every month. Otherwise, your plans can backfire and hurt your FICO score badly.
