There's no secret as to how to get a credit card for bad credit, just be careful which one you choose. However, there are only two types of credit cards for those with bad credit: secured credit cards and non-secured credit cards for those with bad credit. These are basically the same thing, but the difference lies in how they are issued. Both have similar features and rewards, but the ways they are issued may vary slightly from one card to the next.
Secured credit cards for bad credit are cards issued by stores where you deposit money with them. Basically, all of your assets are at stake here, unless you have the funds to pay the monthly balance. This means that you can't simply run off with your store credit cards for bad credit and use them like regular credit cards. They are still secured, just not by cash in most cases. If you were to fall behind in making payments on time, or if you were to go over your credit limit, you will not be able to take them back out of your account.
The best secured credit card for those with bad credit is often a debit card, also known as a charge card, which deducts interest from your checking account when you make purchases. These are great for those who don't like carrying cash but don't want to risk getting themselves into serious debt. It is a good idea to try to find one with a 0% intro APR for as long as possible. This means you get to begin building credit while you are paying no interest. Just be sure to pay off your balance regularly and never let your debt get too out of control.
If you do end up falling behind with your payments, or if you use your credit card too much, you may be tempted to get an unsecured card and increase your spending limit. Unfortunately this rarely works out in your favor. An unsecured card works under the same principles as a secured credit card – you can't exceed your spending limit, and if you fall behind on your monthly payments you will be charged an extra fee. If you are already late on making your payments then this extra fee can quickly add up. Instead of using an unsecured credit card to help you repair your credit, it's probably a better idea to apply for a secured credit card.
One of the easiest ways to find the best secured credit cards for bad credit is to start by going online and looking at the different offers. Many issuers work with those who have bad credit and offer special introductory rates for a limited time. Keep in mind that these rates will usually change after a certain period so if you're interested, make sure to read all information carefully. It is also a good idea to ask questions before you purchase a card so that you are completely clear on any fees or charges that might be applied once you are fully enrolled in your account.
If you have found a few good offers but they don't meet your specific needs, then consider applying for a secured credit card from another lender. This is . . . . . . an especially good idea if your credit rating has already taken a turn for the worst. Because secured credit cards for bad credit typically come with higher interest rates than unsecured cards, this isn't an option for those who need to rebuild their credit score. Still, if you meet the criteria for one of these issuers and are approved, you will be able to enjoy lower interest rates than you would with any other company. Once you have made your payments on time and in full, you will once again be eligible to apply for an unsecured card and begin to build a good credit score.