Bad Credit Credit Cards

Despite careful planning and budgeting, some consumers find themselves facing financial troubles and subsequent problems. When it comes time to rebuild, it is often necessary to apply for bad credit credit cards, since with damaged credit it would be difficult to qualify for most others.

Though it is best to keep the number of credit cards that you have to a minimum, it does help to have one when working to rebuild it. Cards that are geared toward those with bad credit or none are not difficult to find, but they are not all created equal. Taking time to find the best ones is always a good idea.
It takes money to get bad credit credit cards; there really is no way to avoid that. Either there will be fees to pay for the privilege of having one or a security deposit will be required—or both. With some of these types of cards, there will be an initial processing fee as well as a yearly fee that will be required. Both of these fees are rarely required up front, but are added as an expense on the card itself as soon as the applicant qualifies. If the initial processing fee is $29 and the yearly fee for the card is $79, then as soon as the application is approved, $108 is added.
One of the most popular types of bad cards is the secured card. For people with seriously damage, this is often the only type available to them. To obtain a secure one, the applicant must deposit an amount equaling the limit into a special savings account. The card issuer will have access to the money in this savings account, and will withdraw all or part of the money if the holder ever defaults on payments to the account. This will not happen until the holder is seriously delinquent; usually after missing three or more payments.
Despite the money it can cost to obtain bad credit credit cards, they can be helpful when a consumer is trying to repair and rebuild damaged credit. Companies regularly report to the three big bureaus, and payments made on time are reported as well as late payments. Using it wisely and adhering to such guidelines as paying the complete balance each month and never charging more than 75% of the limit can, over time, help a consumer strengthen their score significantly.
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