Hot to get a credit card if you have bad credit

Many people have made mistakes in the past that have left blemishes on their credit history, and while you may have more difficulty finding a credit card with a bad credit record, you can certainly still obtain one from some card issuers. Having a credit card that you pay off monthly is an excellent way to start rebuilding credit. You may have to deal with stricter terms or higher interest rates, but if you are in a position to make your payments, here are some ways to go about obtaining a credit card with bad credit.

If you are a member of a bank or credit union, talk to a representative about obtaining a credit card. They may be willing to do so if none of your bad credit scores are due to dealings with them. Generally, these will also have the most acceptable rates and terms, as well.

Online sites may be able to find you lenders which will find unsecured credit cards specifically for people with bad credit. Like most other credit cards, these cards are called "unsecured" because you do not need to have any sort of savings invested with the issuer to ensure that monthly payments are met. The advantage of these sites is that you can compare different cards to choose one with the best rates and fees for you.

You may also want to apply to stores that offer retail credit cards. In recent years, many retailers have become more stringent about their terms, even to people with good credit, but you may be able to find one that is willing to give you a chance. If you do receive a retail credit card, you will have to make a minimum purchase from the store each month, as well as pay off your monthly balance, and there may be stricter terms than those found with a bank card, such as costlier penalties for late payments.

A secured credit card is another option if you cannot get a card from any other issuer. With a secured credit card, you open a savings account and a percentage of your savings functions as your credit line. You will have the disadvantage of a relatively small line of credit, but this may be the best option if you are unsure that you can limit your spending, or if your monthly income is limited.

-Seth Berger