Tips for Credit Cards for Bad Credit

Credit cards don't have to be just for individuals with good or excellent credit. If you have no credit, bad credit or poor credit due to having no credit, there are still many options available to you in the form of secured prepaid credit cards as well as some banks and credit card companies offering unsecured credit cards for consumers with bad or poor credit. Credit cards for bad credit do exist. There are some tips you should remember when applying for new credit or cards for bad credit.

Many major banks have offers of credit cards designed for people with poor credit or bad credit due to having no credit. If you've never had credit cards, either secured or unsecured, you may want to jump at the first offer you see. Don't make this mistake or the credit card may wind up being more costly than you anticipated. Do some research on credit cards, both prepaid and unsecured. Before you apply for new credit or credit cards, get a copy of your credit report so you know what you're dealing with and what the bank will see when they pull your credit report. If you've had no credit, there should be nothing on your credit report. Make sure nothing's on your credit report that shouldn't be there. People occasionally do find mistakes on their credit report.
There are some credit cards offered that are specifically for bad or poor credit. Make sure you learn all you can about any annual fees these credit cards may charge as well as the interest rate. Determine if the interest rate is fixed or variable. If the interest rate is variable, it will increase along with the current interest rate and prime rate. You don't want to have a credit card that you can't afford to pay if the interest rate goes up steadily. This could turn your new credit scores from poor to bad. Make sure that this particular credit card company reports to a credit bureau so you can improve your credit scores.
Credit cards for bad credit, whether secured or prepaid or unsecured, will often come with higher interest rates and more fees than credit cards for good credit. Make sure the fees are not too high. Set you limits. This is your chance to get new credit scores with a new credit card. Once you get your new credit card, pay attention to all your monthly statements so your payments are always on time. In time your credit will change from poor to good and you'll be able to get new credit cards with lower interest and better terms.
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