"Bad Credit" Credit Card Tips
Is Your Credit Actually Bad?: Unless you're positive you have bad credit, you should avoid applying for a credit card targeted to individuals with bad credit. These offers tend to carry high annual fees and high interest rates. In most instances, credit limits granted are very small, so even if you get approved for a "bad credit" credit card, it likely won't provide you with much spending power.
Check with Your Bank of Credit Union: If you have a pre-existing relationship with a bank or credit union, talk to them about opening a secured or unsecured credit card. Because you already have a relationship with these companies, you may find that they are willing to offer you better terms than what can be found online.
Secured vs. Unsecured Credit Cards: Secured credit cards offer the same credit card benefits and protections that unsecured credit cards do, but require a deposit. This deposit becomes your credit limit. Once you set up a secured credit card account, the company that issues your card will report this to the credit bureaus. This can help you improve your credit score and avoid the exorbitant fees charged to people with bad credit.
Work on Fixing Your Credit Before Applying for a New Card: Because credit cards for people with bad credit have high rates and fees and typically offer very low credit limits, you may be better off taking steps to improve your credit profile and getting a card once your credit score improves.
Visit www.annualcreditreport.com to get a free copy of your credit report