Pre Paid Credit Cards

• Pre-paid credit cards allows someone to place money on the card before he spends the money. Stores, banks, credit unions and other companies offer pre-paid credit cards. People think of pre-paid credit cards as a secure way to carry a lot of money around because the money is on the card and not in their wallet. Pre-paid credit cards work in the same way that regular credit cards do, but anyone can purchase one and you do not need to have good credit to have a pre-paid card.
  
  

Sub prime Credit Cards

• Sub prime cards are cards that have higher than normal interest rates and the person who gets the credit card often has to pay high fees associated with the card in order to maintain it. Sub prime cards are more readily available to people who have bad credit because the fees and the interest insures that the company offering the credit card will make money off the person who applies for the credit card.
  
  

Secured Credit Cards

• Secured credit cards often are available through banks and credit unions as a way for a person to help build up his credit. The person will deposit between $250.00 and $1,000.00 dollars into a separate savings account and the credit card will get reported to the credit agencies each month. The security deposit for the credit card acts as collateral to prove that the person is willing to pay for any cash put on the credit card. If the person does not pay for the credit card the money owed is taken out of the secured account and the card is closed.
  
  

Unsecured Credit Cards

• Unsecured credit cards are lines of credit offered by companies to people who promise to pay the money back when the money is spent. People with bad credit do not get approved as frequently for unsecured cards as people with good credit. Some unsecured card companies do cater towards people with bad credit but the terms are higher and the interest is more then when someone has good credit.