Times have changed since the credit crisis hit, and we're now facing a time of stricter regulations in the credit card industry. Those with bad credit and lower FICO credit scores may find themselves with fewer options at hand for financing. However, even if you're in this situation, there are always ways to shore up your credit so that you qualify for standard credit cards in the future: try using a secured credit card in this case. If you'd rather avoid racking up a balance, then use a debit card or prepaid card instead. You may qualify for one of the cards below even if your credit history is spotty.
Having bad credit is something that many Americans deal with on a daily basis. Bad credit is defined as having a FICO credit score of 620 or below (give or take) and is generally driven by a pattern of late payments, collections accounts, or even a bankruptcy or repossession. In many cases, people with bad credit have experienced a job loss, serious illness or have had business failures.
Having bad credit makes getting new credit, especially unsecured credit such as a new credit card, extremely difficult if not impossible in many cases. Some credit card companies specialize in offering standard credit cards to individuals with bad credit, though these are few and far between. The main drawback with these companies is that the interest rates are generally very high and the fees associated with maintaining the account are even higher. The good news is that there are some options for individuals with bad credit when it comes to opening a new credit card account. Here are a few ideas:
Having bad credit is a huge barrier to creating a solid and secure financial future. The good news is that bad credit is not a permanent condition. With a little time and determination, even the worst credit can be repaired, putting you well on your way to getting better credit card deals and a sound financial future.