Bad credit credit cards and much more
Because the lender knows they will be repaid in full from your security even if you cannot pay out of pocket, offering a secured credit card to a borrower with bad credit is a low credit risk. Secured credit cards are excellent for rebuilding your credit score because they count as a real line of credit. Another type of credit cards for bad credit is prepaid credit cards. Having a prepaid credit card is like having an ATM card without a bank account: You deposit money into an account, then withdraw it by charging to the card or by withdrawing from the card. Prepaid credit cards do not have interest rates because the charges do not come from the credit card company's pocket or accrue, unpaid, until you send in a bill payment.