Best credit card with a high limit for people with bad credit?

Question

Whats a credit card I will likely be approve for if my score is between 540-600? Also what are prepaid credit cards exactly?

Answer 1

Prepaid cards aren't really "credit" cards, because they aren't extending any credit to you at all. You give the card company your own money, and they usually deduct several types of fees from the funds that you give them. Your "credit" limit will be however much is left of your own money once they're done with it. It seriously sucks.

You can probably get a "secured" credit card, which works in much the same way as prepaid, but the one BIG plus is that most of those companies will report to the credit bureaus and that can help to raise your FICO score.

People typically use secured cards to establish or re-establish their credit, and then they move on to better things. If you do go with a secured card, make absolutely certain that they will report to the credit bureaus, otherwise you are just wasting money.

After suffering from poor credit ratings for a while, my first decent credit card was through Wamu (formerly Washington Mutual) and they gave me an initial line of $2000 with a 0% interest rate for the first six months. That helped me to consolidate my crappy cards and get them paid off before the interest started accumulating.

Hope that helps and good luck!

BTW, Capital One may issue you a card, but they are known for not reporting your limit to the bureaus, which can actually lower your score. The reason for this is that 30% of your score is based on what percentage of your available credit has been spent, and if there is no reported limit on a card, FICO will assume that whatever your greatest reported balance has been IS the limit on that card. Therefore, if you have a $1000 limit, but you've only put $100 on that card - well, you are only at 10% of what you have but the score will assume that you are at 100% and that will significantly lower your score.

(Sorry I can't explain it better) I've heard that Capital One plans to start reporting limits, but until that actually happens I would try to avoid them - especially since you already have a not so great score to begin with.

Answer 2

If your credit score is over 800, you're in the top 10% of the populace.
If your score is about 710, you're right in the middle. (Half of the US population is better, and half is worse.)
If your score is below about 575, you are in the bottom 10%.

You won't get any credit cards with that rating.

http://www.targetwoman.com/articles/prepaid-creditcard.html

A prepaid card is just that. You want a card with $100 to spend on it? No problem, you get the card and put $100 (plus a small charge to load it) on the card and use it. As it runs low, you add more money to it. You can't get in trouble with it because if what you are using it for exceeds your balance, they reject the card.

Answer 3

With a credit rating under 600, you don't get a major credit card period, forget about wanting a high limit.
Your only hope is to get a prepaid credit card, or debt card.

Answer 4

Don't know about the credit card you would be approved for but a prepaid credit card is a card you would add money to and use it like a credit card.

Answer 5

People who have a bad credit rating could probably do well to avoid credit cards until they learn to manage their money/credit better. My suggestions would be no credit cards are the best ones.

The prepaid ones that you are talking about are called debit cards here- they take money out of your account instead of building a bill. It is a good way for you to learn to manage money and credit

Credit cards bills can really hamper your life if you get out of control in your early years (early twenty's). Please think hard about getting a credit card.

Answer 6

Forget the credit card. With a poor score you will be paying very high interest. Clean up your credit score. Go to a credit counselor (available for free if you use a Credit Union) and get their help. The higher credit rating you have, the lower the interest you pay on your future credit card. First, you have to get a handle on your finances.

Answer 7

PREPAID cards are when you load money onto the card and then use it--max you can "charge" is the value you already put on it. There are many fees and it costs you a lot more than just paying in cash, if you have the money. Best card for you is a SECURED card. Works like a regular charge card but is backed by the funds in a savings account--again, the account is blocked so you can't withdraw from it. You earn interest but your money is held to cover any charges on your card.

Answer 8

No doubt that you could get a credit card with that credit score, but you will not get a high limit and you will pay the max interest, banks like Orchard will probaly give you one.

Pre paid is just that, you load it with cash in ADVANCE of using it, just like a debit card, if the money is not there, then no purchase.

Answer 9

my score, prior to my bankruptcy, was 550, and i couldn't get a credit card at all. i had to go with a prepaid card. that's when you put money down as a deposit, and you can only spend up to that limit, much like a debit card. you could put $400 down, and spend only up to $400. you'd only have available on your card what you put down, and then what you paid off. if you gave them $300 to pay your $400 bill, then you'd have $300 on your card.

as mentioned, the greendot card is also an idea. you can put money on it at several different retailers, and your limit on the card is the amount of money on it, much like the other prepaid variety. the difference is that greendot doesn't go on your credit report. if you're trying to build your credit, go with one offered through a traditional financial institution.

look into orchard bank prepaid cards. but BEWARE- they do NOT like it if you don't pay them. they will hound you to DEATH over it. i was so happy when i did the bankruptcy because they couldn't bother me anymore.

Answer 10

Check out www.fastcreditcardapprovals.com here you will be able to compare all major credit cards side by side on rates and rewards, GOOD, BAD OR NO CREDIT they have the right card for you.