How to Compare Credit Card Offers for People With Bad Credit

Once you have damaged your credit through default or bankruptcy, you can still get a credit card, but the deals will not be as good. Even bad credit isn't going to stop the offers from coming. Do not just jump at the first offer you get. Take the time to weigh the costs to you that accepting the card will mean. Most of the time this cost is monetary.

Difficulty: Moderately Easy

Instructions

1. Examine any card offer you receive in the mail for the fine print. Often these offers are not truly for a MasterCard or Visa but are for a card that is good only with that business. This limits you to purchase only from them if you want credit and doesn't help you if you need to purchase things like gas, airline tickets or rental cars.

2. Check out the membership fee, if any, that they will charge you to "rebuild" your credit. Many companies and banks will offer you an unsecured credit card but only through their program card. A bill for the membership will appear on the first statement, and then you already have a balance as high as $200.

3. Find the interest rate that the card will carry. Some offers are for interest rates as high as 25 percent. These cards are designed to take advantage of consumers that have bad credit and make things that much worse for them.

4. Verify the benefits that the card offers. Many cards available offer cash rebates, air miles or introductory low or no percentage interest rates for a defined amount of time. All these offers can be extremely beneficial, provided you use them wisely. Evaluate which offer best suits your needs in both the short term and the long term.

5. Locate the annual fee for having the card, which will appear in the terms of the card offer. Many cards actually charge you to carry their card whether you use it or not.