Credit Cards for People with Bad Credit - How to Find A Credit Card If You Have Bad Credit

If you want to have a credit card but have a bad credit rating, there are credit card options available to you.  There are credit card companies that issue cards for people in your situation.  There are some key differences between these cards and traditional credit cards.  For example, the fees are considerably higher with these kinds of cards. 

Be sure to learn about all of the fees before you complete and sign the application.  Most credit cards for people with bad credit require you to pay an application fee prior to issuing the card.  This is a one time non-refundable charge that is due with your application.  If your application is denied, the fee will not be returned to you.  The average application is between $100 and $150.

Most banks will also charge a monthly maintenance fee.  This is different than the annual service fee.  Maintenance fees average between $5 and $7.  These charges are added to your card each month whether you use the card or not during the month.  Not all of the institutions that issue credit cards for people with bad credit send reports to the three primary credit bureaus. 

Once again, before you sign the application, you will want to verify that the bank will report your credit to TransUnion, Experia and Equifax, the three main credit rating bureaus.  When trying to rebuild your credit, it is important that the bureaus receive monthly information on your payment history.

Another option to consider is a prepaid credit card.  These credit cards for people with bad credit can be used to help people to make purchases that require a credit card and begin to rebuild their credit at the same time.   A prepaid credit card is similar to a debit card. 

You deposit money into your prepaid credit card account in the same way you deposit money into your checking or savings account so that you can use your debit card.  To make a purchase, there has to be enough money in the account to pay for the purchase.  This is a convenient option for online purchases and travel related reservations. 

Credit card companies are aware that there are a large number of individuals with a bad credit history, but who also have the cash available to pay for their purchase.  If customers use their credit cards for people with bad credit carefully and stringently, they will be able to rebuild their credit reputation.