If you have poor credit, a bad credit credit card is a great way to begin rebuilding your credit. While virtually anyone can obtain a bad credit credit card, you do want to ensure you get the best possible deal despite your poor credit. You will find that most companies offering credit cards to those with bad credit do charge additional fees such as annual membership or transaction fees, so it is important to do thorough research.
Annual membership fees for bad credit credit cards are usually fairly minimal, under $100. The credit card company looks at this as their profit for taking a risk on you, given your poor track record. Other companies may charge transaction fees if you make a late payment or exceed your specified credit card limit. You can also find companies that charge monthly fees for the card’s use.
Whatever bad credit credit card you choose, you can expect to pay a higher interest rate on any balances you carry over month to month. As you are already familiar with the dire world of bad credit, it is wise to start small with your purchases on this card. By paying off the monthly balance and avoiding high interest rates, you steer clear of more debt and show yourself to be a lower risk borrower over time.
While building your credit back up and avoiding large purchases, you do want to ensure that you make a few small purchases on the card regularly. Ideally, you should be purchasing on your card and paying off those purchases regularly. Every payment is then recorded on your credit score, improving your overall rating.
Take a look at our top Credit Cards for bad credit
