Bad Credit Credit Cards: Protecting Your Credit Rating

I got lots of free credit card offers in my campus mailbox, like many college students have for years. I got some and began charging left and right, because I thought I’d have no problem repaying them. That turns out to have been a bad idea, because I underestimated the payments, and with no job I couldn’t pay the bills.

My credit was shot before I finished college. However, I grew up, got a good job and found myself needing credit cards and needing to rebuild my credit history. It took some time but bad credit does go away and one of the first steps can be to get bad credit credit cards. My credit is now perfect and getting the best rate for a mortgage was a snap.

Be honest with yourself and make a sincere assessment of your situation. You’ll need to get a copy of your credit score and find out what your numerical value is. It may seem hopeless now, but there are concrete steps you can take to get back on your feet and have a new credit beginning.

Second, you can choose from either a secured credit card that works like a debit card, by guaranteeing it with a deposit made with a bank or institution or an unsecured credit card that can have a high interest rate attached. Once you’ve gone through the steps to obtain credit report, review your banking history. Have you bounced checks in the past? Do you have trouble keeping your checkbook accurately balanced? If you can answer ‘yes’ to either of these questions than you might want to consider bad credit credit cards option.

Once you choose on the bad credit cards route, you need to be aware of the available options. Is a secured deposit required? Will you instead choose no deposit but be saddled with a high interest rate? How much is the annual fee? Will the interest rate be lowered if you maintain a good payment history? Can you choose the day payment is due, so you can match it up with payday? Are there any bonus programs? What, if any, are the income requirements?

Don’t just accept whatever card comes your way. Search out your options. Be very wary when it comes to interest rates. Turn down any card with a high interest rate that can get you in the end. If you have bad credit history, a rate under 20% is reasonable for an unsecured card.

Now that you’re on your way to getting back on track, keep on top of your credit score. Take a look at an updated score every so often to check that your new credit card company is reporting on-time payments. If you’re not noticing a difference, call your card company to request it. By the time you’re wondering, “What is my credit score?”, you’ll see it start to climb again.

In college I got into real trouble with my credit. I filled out free applications, charged left and right, and was unable to pay the balances that kept racking up more and more in interest. After college, I got serious about turning my credit around and now my score is perfect. Make an honest assessment of your credit history. Ask, “What is my credit score?” Try bad credit credit cards, which have several options to help you back on your feet. Obtain credit report figures on yourself from time to time, just to make sure your credit continues to improve as you make your payments on time.

- Daniel Lesser