How to Get a Credit Card Even With Bad Credit

If you have bad credit, you know you won't have that many options for credit cards. And the lower your credit score, the fewer those options get. The good news is there are credit card issuers that offer cards specifically for people in your situation.

First things first, you need to know exactly where you stand. You may have received a credit score in your mail when you got rejected for a regular credit card. If not, just buy it directly from any of the three credit bureaus. There are also websites that will give you free versions of your credit score. Just be careful with these free sites though. Some will offer you a free credit score, but this only a ploy to get you subscribed to a credit monitoring service. If you need to provide your credit card number for your credit score, they getting you on a trial subscription for sure, and then they'll start charging unless you cancel.  read more here

A lot of borrowers dismiss secured credit cards because of the security deposit that will usually be required to secure their credit. Most of these secured cards can be converted to unsecured status anyway after a year of consistent on-time payments. In fact, these cards are just the perfect opportunities to show, after some time, that you can be trusted again with regular unsecured credit.

Some companies will accept a security deposit as low as $49 for a $200 credit, but if your credit is extremely bad, you'll have to pay the whole $200. In any case, a secured credit card that reports to the major bureaus is still way better than none. See more  credit card for bad credit

Not all companies that provide secured credit cards are the same, however. In fact, you'll want to steer clear of some of them, such as those that charge ridiculously high upfront fees that consume most of the credit limit. According to Federal law, fees can only go up to 25% of the credit limit.

Finally, if your goal is to rebuild your credit, prepaid cards do not necessarily help you with that.Prepaid cards require you to pay a deposit before you can use them for purchases, which all get deducted from your available balance. But unlike secured credit cards, prepaid cards do not report to credit bureaus and thus do nothing to improve your credit.