If you have bad credit, then you are probably wondering what kind of credit card you can and should get. Although they may not always be easy to find, credit cards for bad credit are available. And contrary to popular belief, even those with poor credit and no credit have options when it comes to credit cards. This article will explore those options so that you can get on to rebuilding your credit right away.

The first type of credit cards for bad credit are secured credit cards. These cards are available to almost anyone, even individuals with a record of bankruptcy or very bad credit. This is because these cards are of the prepay variety. When you are issued a secured credit card, you make your own deposit that becomes your credit line. And if you use your card wisely, you might be eligible for credit beyond your deposit.

The second type of credit cards for bad credit are high interest credit cards. These cards may not seem like a good idea, but for some people they can be. A high interest rate makes up for the fact that you are not trustworthy in the bank’s eyes. And if you carry a low balance on your card, you can start rebuilding or establishing credit without spending too much in interest.

Another option you have when it comes to credit cards for bad credit are low balance cards. These cards come with a low spending limit and are available from all the major card companies including visa and mastercard. Best of all, if you make your payments on time and don’t go over the spending limit, you may become eligible for a higher spending limit over time!

By: Sarah Freeland

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Poor credit or bad credit is not a hindrance for getting a credit card in today’s market place. There are several issuers that will guarantee a credit card in your name by simply applying on line. The first question that comes to mind is, “Where’s the catch?” The catch is that they want your business. There will be some limitations on the card that you will not normally see on a standard card.

Guaranteed issue cards will usually have a low limit on the maximum charges. Some of these cards may be as low as $200, while others will go up to $5000. If you are trying to rebuild credit this may be a good deal for your situation. Spending $200 a month on budgeted items is easy for most family units. Paying the bill on time and in full will help increase your FICO score and allow you to get a better credit rating and ultimately a higher maximum limit.

Going this route does take time and diligence but it can be done. If your bill is paid off each month there is no need to worry about the APR, (monthly interest rate). That rate will usually be over 10%, but it cannot hurt you if you do not carry a balance.

Some issuers may charge a hefty annual fee. Shop the market and find a card that makes an introductory offer of no annual fee for at least the first year. At the end of 12 months you have the option to renew or cancel to avoid the fee. Try not to take cash advances on these cards because they will charge you a higher interest rate. Since you are trying to restore a good credit rating this should not be a normal budget item.

Credit card companies make a large share of their income from interest payments. They play a numbers game and hope people do not pay off the balance so they can make money. Use your discipline and budget to beat them at their own game. Your priority is to have better credit and their priority is to make money. Use your card wisely, be on time with payments and do not carry a balance.

By: William Sears

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