As you may have found, many banks that issue credit cards to people with poor credit will charge a huge amount of interest when compared to normal credit cards. Essentially, the bank charges higher rates since is risky for the bank to issue credit cards to a person with bad credit. The bank realized that is always the chance that they may lose money due default by the customer. So, as you might expect, they make up for the loss by charging high interest rates.

But, unsecured credit cards are not your only option. You do not have to pay the fees and high interest rates. You can choose to obtain a credit card guaranteed by your own cash. Many banks offer such cards, which require you to have a certain amount of money on hand at the bank, usually equal to your credit line.

When you select a guaranteed credit card it is critical that you make sure that the credit card provider (usually a bank) will be reporting your payment information to all of the major credit bureaus. This is especially important if you are working your way out of credit trouble. Please know that all credit cards guaranteed by banks have this feature.

Another thing that you will want to check on is credit increases. After all, you want to be awarded on-time payment history. So, make sure that any guaranteed credit card offers credit increases with good payment.

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