Good credit can enable you to purchase a home, car, and other material goods. Also, having a solid credit history can make it easier for you to obtain a credit card. However, possessing bad credit doesn't mean that you cannot utilize the benefits that a credit card offers. There are companies that will help you to get a credit card even if you have an unsatisfactory credit rating.
FICO Rating
Determine if your credit is bad according to the rating system used by credit card companies; this is also known as your FICO score. To find out your FICO score, obtain a free credit report from one or all three of the major credit reporting agencies. These agencies are Equifax, Experian, and TransUnion (see resources). The number 300 is the lowest FICO score you can have and 800 is the highest. A FICO score of 619 and below is considered to be in the bad credit range.
Problems
Getting a credit card with a poor credit rating is going to cost you. You will pay the price in higher APR rates, higher annual fees, increased late payment fees, lower credit limits, and a one-time processing fee that will usually be at an inflated price. These negative features may or may not be included with the terms for your particular credit card but if they are make sure that you can realistically handle these types of terms before you accept the card.
Identification
There are quite a few companies that offer credit cards to people with bad credit. One organization that has offices in most cities throughout the country is the Debt Consolidation & Credit Card Debt Counseling Services. Check the Federal Trade Commission's Bureau of Consumer Protection as well, to make sure that any company that you decide to work with is a legitimate organization that will help you with your bad credit situation and not exploit you because of it.
Considerations
Deal with only one credit card company at a time because your situation probably won't allow you to receive two or more credit cards. Even if you are offered a credit card from two or more different sources still only take one offer. You don't want to risk getting further in debt by taking on more credit than you can manage. Having too many cards can also do further damage to your FICO score.
Apply
Decide which credit card company is best for your circumstances then apply for the card. You will need to meet some basic requirements, including having a stable employment history and an adequate income. You may also be required to have a co-signer on the card. If you are rejected by a credit card company, do not re-apply unless your situation has changed since your first application (e.g., you have a higher paying job).
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