Getting Credit Cards When You Have Bad Credit

Many people have made less than stellar decisions in their past regarding credit. Sometimes a person is just young and naive, biting off more than they can chew and sometimes "life happens" and puts a person in a position where their credit is jeopardized. Regardless of the reason it happened, it's important to realize that a person can dig themselves back out of the trenches. Bad credit, while it can be a pain, does not have to define a person. There is always a light at the end of the tunnel, and one of the most important things a person can do is to trek forward, rebuilding their credit.

Believe it or not, one of the best things a person can do to start rebuilding his or her debt is to get a credit card. While it may seem almost impossible to get a card at first, there are companies that cater specifically to people with less than stellar credit. In order to rebuild credit, a person has to reestablish a good history with creditors, and sometimes the only way to create a positive credit history is to open a revolving account.

Bad credit credit cards aren't exactly like other credit cards however, there are some pluses and minuses to them. Often, they are either secured or partially secured, meaning that a person pays some cash up front as a security deposit. In addition, many bad credit credit cards have an annual fee and a higher interest rate than standard consumer credit cards. They often have low credit limits (starting even as low as $ 250-300) but as a person diligently pays and proves that he or she is not going to make the same mistakes as in the past, the credit limits will inch up over time. The great thing about these cards is that even if they are completely secured, meaning that a person never spends borrowed money, only money they already paid the company, the companies still report the payments and account balances to the major credit bureaus, helping a person Establish a positive credit history.

It is easy for things to spiral out of control, resulting in a person having a bad credit history. Once that person picks themselves up from whatever situation they were stuck in, however, it is important that they reestablish themselves as a diligent debtor, paying their debts on time. The only way to rebuild credit is to have access to credit, and a bad credit credit card can be just the thing.

Source by Rodney Helms

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