An online search for unsecured credit cards, often brings up a plethora of credit cards handed to you by dozens of credit companies offering various types of rewards including airline miles and cash back. You name it, it's out there. If a person has bad credit, it is tough to get an unsecured credit card. The line of credit is low and the interest rate is high and in many cases a deposit is required. After performing some research, I discovered a type of credit card that allows a person with credit problems to re-build their credit while purchasing name brand products that otherwise would be unobtainable for someone with bad credit and little cash. It is an online shopping credit card or a credit card exclusive to an online shopping mall. These types of companies offer to help consumers build their credit up by shopping for products offered at the credit company's exclusive online mall and unlike the traditional unsecured credit cards there is no credit check. They claim that everyone qualifies and is pre-approved right from the start.
Credit increases for products are offered as long as the consumer's payments are on time. The credit card company reports account payments to the credit bureaus each month, helping the consumer re-build their credit.
Is this type of credit card right for everyone? That depends. A high risk credit card from a bank will most likely not give the consumer a big credit line up front, not enough for a large purchase, but it is enough to help them re-establish their credit and if payments are made on time, card holders are rewarded with credit line increases. On the other hand, a catalog credit card may offer a larger amount of credit right away, but limits the consumer to purchasing products from the credit company's online mall.
Yvette Duvall is a freelance writer on various topics including finance and health and fitness.
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