Many banks offer credit cards designed specifically for people who are rebuilding their credit scores. No matter how low your credit score or how damaged your credit history, there is a credit card that is right for you. Some of your options include:
- An unsecured credit card. Some of the credit cards for people with bad credit will have a low credit limit, a high APRs and other fees, so be sure to read the terms and conditions thoroughly. There are some very good low-fee credit card options for people with bad credit, but you will need to review the terms and conditions to find the best one for you.
- A secured credit card. These cards require users to put down a deposit as collateral, to pay the bill in case of default. The amount could be anywhere from $200 to $2,000, and that will then be your starting line of credit. In time, the limit may be raised.
- A credit account with an online catalog. A credit account like WebBank/Fingerhut Credit Account or Horizon Gold offers guaranteed approval with no credit check and allows you to buy merchandise from their online catalog. They report your activity to major credit bureaus, so your credit can begin to improve if you make regular, on-time payments and keep the terms of your credit agreement.
Once your credit is on the mend after using one of these cards responsibly for a time, you will be eligible for credit cards with lower fees, low APRs, and higher limits.