How to Get a Credit Card with Bad Credit

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By Jennifer Claerr
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Get a Credit Card with Bad Credit

If you've experienced financial problems that have left you with a bad credit history, you may still be able to get a credit card. There are many solutions that will get you a credit card right away. These solutions will also help you to rebuild and repair your bad credit history. Some credit cards are available to anyone regardless of his credit rating. Once you have reestablished your credit rating, you will have a better chance of getting an unsecured credit card.

Difficulty: Moderate

Instructions

Step 1

Get a prepaid credit card. Prepaid credit cards work a lot like debit cards, except that they help you to rebuild your credit rating. You make an advance payment based on how much you plan to spend on your credit card. Then you make purchases against the balance on your account. This option is good for people who have bad credit due to bankruptcy or foreclosure.
Step 2

Get a secured credit card. A secured credit card is associated with a deposit account. You deposit a certain amount of money in the account. In return, you receive a line of credit for the exact amount you deposited. However, instead of having your balance debited each time you make a purchase on your credit card, your deposit account is held as collateral. In the event that you fail to pay your credit card bill, the amount you owe may be debited from your account. This is another excellent way to repair bad credit.
Step 3

Apply for an unsecured credit card with reputable lenders. Keep in mind that your interest rate will probably be high if you haven't rebuilt your bad credit with a prepaid or secured credit card. You may also have to pay an annual fee to keep the card. If the lender isn't familiar to you, check out its reputation on the Better Business Bureau website.
Step 4

Consider getting a credit card that's specifically designed for bad credit. Orchard Bank and First Premier Bank both offer this type of credit card. Both banks have a satisfactory rating with the BBB and have received very few complaints.
Step 5

Watch out for scams designed to defraud people with bad credit. Never pay upfront for an unsecured credit card. Avoid lenders that claim to "guarantee" approval for people with bad credit. Check out the Federal Trade Commission's website for additional information on how to avoid credit card scams.

Comments

seabound said

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on 9/14/2009 Great tips and useful in this economy. 5*

AnneZ said

on 9/10/2009 I like the pre-paid credit card idea a lot! It will stop and make you think before buying something! 5*s

Lamonique said

on 8/17/2009 Great info on getting a credit card with bad credit!

airving said

on 8/11/2009 Thanks for sharing How to Get a Credit Card with Bad Credit. My partner doesn't have the best credit in the world so these are very helpful tips. 5* and rec.