Bad Credit Credit Cards ? You Have More Choices Than You Think

Posted by Nick Niesen on October 29th, 2010

People with bad credit are usually resigned to their fate. They?ve accepted that they have nil chances of obtaining a credit card, and if they do, it?s something they can only use on a few stores. If you have bad credit as well, you should know now that it?s not the end of the world for you just yet.

Credit Cards You Can Go for Even with Bad Credit

Yes, there are still roads for you take if you wish to obtain a credit card. Firstly, there are credit cards that are specifically designed for individuals with bad credit. Of course, expect fewer advantages and more limitations from this credit card when you compare it to regular ones.

Bad credit credit cards usually require individuals to make a small deposit. This deposit will be used as security by your credit card company in the event that you?re unable to pay your bills on time.

Bad credit credit cards also impose higher interest rates and penalties on credit card holders because of their credit scores. If you?re able to pay on time without fault for a few years, however, you could talk with your bank manager to change the status of your credit card or at least lower your interest rate.

Bad credit credit cards naturally have lower credit limits as well but again, don?t let this get you down. Any credit limit is better than nothing. If your bad credit credit card requires security, the company may set a limit on your card that?s no higher than the amount of your deposit. To look at the brighter side of things, your credit limit can certainly be increased if you make an effort not to miss on any of your payments.

Another option open to you are prepaid credit cards. These cards allow you to reload your credit card balance and continue to enjoy convenient cashless purchases.

There are many other benefits to enjoy when you make use of prepaid credit cards:

Firstly, most companies offer you an overdraft safety program to make sure that you don?t inadvertently dig yourself into trouble. Secondly, it offers the same rewards that regular credit cards do. Payment and reloading methods are also easy and convenient. Thirdly, most, if not all, prepaid credit cards come with the guarantee of 100% approval ? no matter how bad your credit history is, you can still feel sure that you?re going home with new plastic money.

How to Apply and Select a Bad Credit Credit Card

Don?t sign up for the first bad credit credit card you come across. Gather as much information as you can and compare the benefits each card offers.

Talk to your bank manager about your situation. He may be able to offer you solutions you haven?t thought of.

Choose credit cards that offer services specially designed to aid people with bad credit like you. This may include but is not limited to free alerts regarding your account and safety programs to prevent you from going over your credit limit.

Lastly, there are credit card companies that don?t require any credit checks so if you feel bad talking about your bad credit (no pun intended), you don?t have to force yourself to apply to companies that will put you under interrogation. You have choices so use them!