In case you're confused regarding whether or not you can get a credit card with a bad history, the answer is yes. It is possible for many customers to get cards even if their previous history was bad. If you've missed payments, had a card canceled or if your FICO score is below 600 it's going to be difficult for you but it is still possible.
Before applying for any new loan check your credit report for any errors or mistakes. It's possible you could bring your score up enough to qualify for lower interest rate even if all you qualify for is a secured card.
Companies that offer secured cards can be found online but also check with your local bank as well. In a secured card you make a deposit which will be equal to the balance with the issuing bank. Banks are comfortable approving you since the payment for future purchases have already been made and they cannot incur any losses. The deposit is kept for at least 12 months of on time payments and may be returned at that time. Many companies keep the deposit for the life of the card
The interest rates on these secured cards are higher than an unsecured card. The reason is that most individuals who opt for secured cards will pay the higher interest rate because they realize it's the only kind of credit card they qualify for. In addition the bank knows that as soon as the customer can get an unsecured account they will and transfer the balance to the new card.
Secure credit cards also have higher other fees associated with them. Banks make a pretty hefty profit from consumers who are desperate to apply for these credit accounts. There can be annual membership fees, processing charges, and greater penalties for late charges. Interest can be earned from the day a purchase was made rather than the last day of the billing cycle.
In spite of the high fees, many people who use these secure credit cards use them to fight their way back to a strong credit report. A secured card may be their only option to rebuild their credit for the future.
If you're someone who is looking to find another credit account due to your previous poor credit history, the best advice would be to take some time out to look into different cards and determine which the right one would be for you. Even with secured credit cards there can be differences in interest rates, application fees, and annual fees. Find out when or if you can request your deposit back and if there are any pre-penalty fees if you close the account before a certain amount of time has elapsed.
As long as you're responsible with your new card, your credit card history will be on the right track.