You are trying to repair your poor credit history, because youve misused a credit card in your past. You do not need to be told how difficult it is to get a credit card. Even if your financial situation has changed, you may need to prove your creditworthiness before your credit score begins to reflect your changed habit.
The truth is, even if you are not getting offers in the mail, there are many places online where you can search for the best deal on credit cards for people with bad credit, including both secured cards and unsecured cards, and get the best interest rate for your needs. But often, if your credit score is considered bad, you are not going to qualify for a decent interest rate. Indeed, for borrowers with bad credit, your credit offers may have interest rates as high as 24% - not to mention steep annual fees, program fees, participation fees, and other monthly charges. If you are desperate to rebuild your credit, it might be worth it to you to take on this type of card, but be sure to read the fine print and know what you are getting into.
For a person who is unable get any kind of unsecured card, a secured credit card might be a useful tool to rebuild your credit rating. A secured credit card is not exactly the same as a debit card, but it does involve using your own cash as security. With this type of card, your cash collateral deposit becomes your credit line for that account. For example, if you put down a deposit of $500, you will have a $500 line of credit. You may be able to extend your credit line by adding more money to the deposit, or, sometimes, the bank will reward your timely payments by extending your credit line without an additional deposit.
As with any offer, be sure to read the fine print and make your payments on time. Even a one day late payment can ding your credit rating and undo all your hard work, not to mention result in late payment fees, and an interest rate hike as well!
