Most credit cards that you get will be offered to you based largely on your credit score. If you have a history of bad credit, then many larger banks and credit card companies will not approve your application. The good news is that people with bad credit can still apply for a credit card from some companies.
Having a bad credit score makes you a high risk candidate for borrowing money on a credit card. If you want to apply for an unsecured card then this would mean an very high interest rate to compensate for the likelihood that you will not be able to meet some payment. You credit card limit will also be lower. You will not be given any kind of perks that they usually give to those with good credit scores. This includes cash back or air miles.
It is possible for people with bad credit standing to get a secured credit card. There should be some kind of security against the amount that you are going to borrow. The credit limit of the credit card is determined by the balance on a savings or current account. If you saving account has a few hundred dollars in it, then your credit will be slightly lower than this amount. However, it may be different terns for different lenders so make sure to check their terms and conditions.
You may be able to increase your credit limit on your secured credit card by making further deposits to your account. IF you have been making regular payments, the card issuer may grant you an increase without requesting further secured funds. But this is according to the discretion of the lender.
Applying for a joint account with a family member with a good credit rating is another option you have for applying for a credit card with bad credit standing. Financially, this is the best option as the terms will be the same as a normal card when it comes to interest rates. Just make sure that you pay each month diligently. Make sure that if you fail, the co-signatory can make the payments for you. If he also fails to make payments then both credit scores will be affected.
If you shop around, you will be able to find the best credit card for bad credit. usually secured credit cards requires application fees and annual fees to be paid. Although these fees are small, you should beware of some less reputable credit card issuers that take advantage of your troubles and charge you with very exorbitant costs.
Now that you have a credit card with bad credit, you have an opportunity to improve your credit score by being responsible to pay your monthly dues.