Most credit cards that you get will be offered to you based largely on your credit score. If you have a history of bad credit, then many larger banks and credit card companies will not approve your application. However, you can still find some providers which have specific cards for poor credit.
Having a bad credit score makes you a high risk candidate for borrowing money on a credit card. Since the likelihood that you can miss payments is high, then this unsecured credit cad will be given very high interest rates. The limit on your credit card will also be lower. And you will not be given any perks that people with good credit rating enjoy. Some credit companies give cash back or air miles to their clients.
Another option for people with bad credit score is to get a secured credit card. You must provide the issuers with some form of security against the amount you borrowed. The credit limit of the credit card is determined by the balance on a savings or current account. If you saving account has a few hundred dollars in it, then your credit will be slightly lower than this amount. However, it may be different terns for different lenders so make sure to check their terms and conditions.
You may be able to increase your credit limit on your secured credit card by making further deposits to your account. If you haven’t missed a single payment, then some card issuers will give you an increase in your credit limit even without increasing your bank deposit. Increasing the credit limit is only according to the lender’s discretion.
If you have bad credit standing, you can also apply for a joint credit account with someone who has a good credit standing. The rate on this type of credit card is the same as a normal credit card. Just make sure that you pay each month diligently. If you cannot, your co-signatory will need to ensure that he is able to manage payments on your behalf. If he also fails to make payments then both credit scores will be affected.
If you shop around, you will be able to find the best credit card for bad credit. There are some lenders that charge an application fee and most lenders charge an annual fee on a secured credit card. Some fees are small but you should be aware that some less reputable card issuers take advantage of people who have trouble obtaining credit and charge overpriced costs.
Paying your monthly dues will help you improve your credit score with your credit card for bad credit.