Credit cards for bad credit

If your credit score has been ruined by a bankruptcy, foreclosure, debt settlement or just poor credit management, it may be difficult to get to get a credit card. Luckily, there are specific credit cards for bad credit. Many credit cards for bad credit aren’t really all that different from regular credit cards. However, they generally carry high interest rates, have annual fees and lower credit limits. Many local and national banks offer these types of cards.

Another option when it comes to credit cards for bad credit is a secured credit card. With these types of credit cards for bad credit, you have to make a deposit or link the cards to a checking or savings account. You are not allowed to spend more than a set amount, which removes the risk for the bank issuing the card. The advantage of such a card is that you will get a lower interest rate and may not have to pay a fee. The disadvantage is that your credit limit will be limited to your deposit or a certain amount in your checking account.

One other credit cards for bad credit option is a prepaid card. These work much like gift cards in that you essentially buy them. But you can use them in instances where you need a credit card and many report your usage history to the credit bureaus. Banks, credit card companies — even Walmart — offer these types of credit cards.

If credit cards got you into your debt and credit problems in the first place, you may be wondering why you would want to risk those problems again with credit cards for bad credit. The reason is that you need credit to be able to rebuild your credit history and boost your credit card, and credit cards for bad credit are likely the be the easiest — and maybe the only — form of credit you can get. Use such cards responsibly and make sure the card you have reports your usage history to the credit bureaus.