How to Get a Credit Card if You Have Bad Credit

Do you have bad credit and want a credit card for those unexpected emergencies?  Do you want to rebuild your bad credit due to bankruptcy or divorce?  Or maybe you would like to establish your credit?  There are a few options to explore if one of these descriptions fit you. 

A small retail store is a good place to start when applying for a credit card.  They tend to be more willing to give you a credit card regardless of your credit score.  Make small purchases and always be sure to pay the credit off in full each month.  This will help you to re-build or establish your credit.  Never skip payments; this will put a ping on your credit report which is what you should be trying to avoid.  Once you have diligently paid your card in full each month for an extended amount of time, you will be eligible for more widely-known credit cards such as Visa, MasterCard, American Express, etc.

Check out your current bank, credit union, or savings institution and apply for a credit card.  Since you have been a customer with them for a period of time you can usually sign up for a credit card with no problems. 

A secured credit card is always an option.  This is often a good idea.  The way it works is you put money down upfront as collateral.  The issuer than will give you a line of credit 1.5 times more than the deposited money.  For example, let’s say you put $2000, you will have a credit line of $3000.  Usually you will earn 4-5% interest on the deposited money; however you will still have an interest rate accumulating on the outstanding balance each month.  This usually ranges anywhere from 16-23% depending on your actual credit score.  If, for some reason, you downfall on your debt the issuer will then get to keep it.  This is one of the safest ways for you to rebuild or establish credit and you decide the credit limit depending on how much you put down upfront.

If you have a close friend or relative who trusts you and you trust yourself, you can always have them co-sign on a credit card.  This is a little dangerous, however, because the co-signer’s credit will count as well.  You will need to be extra careful in your expenditures on the card to be able to maintain good credit for you and the co signer.

There are many different pre-paid credit cards that you can apply for.  It’s very simple.  No one is denied and it will help you to rebuild or establish your credit.  It is probably one of the smartest ways to go when you need cash; however, you will have to put cash on it when you first receive it.  Once you have had the card for a period of time and have not abused the terms and conditions, you will be able to apply for a more widely known card.  This is very similar to how the secured credit card works.  Each issuer has different terms and conditions so be sure to read everything, including the fine print.  You don’t want to be charged for unwanted fees that could have been avoided in the first place.