Bad Credit Credit Cards: Protecting Your Credit Rating

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Author: Daniel Lesser

Article source: http://www.articledeshboard.com/. Used with author's permission.

I received free credit card offers in my campus mailbox every week, like millions of other college students in recent years. I began using the offered cards, figuring I'd have plenty of time and money later to pay them off. However, since I didn't have a job and underestimated the monthly payments, I was quickly proven wrong.
My credit rating was trashed before I had completed university. Nonetheless, I survived, got a decent career, and realized more and more the need for credit cards and re-establishing my credit history. It was a slow process, but poor credit ratings can be improved. One of the first steps can be to get poor credit cards. I now have very good credit and obtaining a great mortgage rate was a piece of cake.
Know what you are up against by getting a copy of your credit report. Your credit score may look pretty bad now, but it is possible to improve your score; even if you do not, there are more credit options for those with poor credit than ever before.
The number two step is to choose between an unsecured credit card that carries an astronomical interest rate or a bank-sponsored secure debit card. After you obtain credit report scores on yourself, look into the cards your bank offers and consider your account history. Do you tend to write bad checks? Do you balance your checkbook regularly and correctly? If you have a shaky history in respect to either question, take a closer look at bad credit credit cards options.
Once you choose on the bad credit cards route, you need to be aware of the available options. Is a secured deposit required? Will you instead choose no deposit but be saddled with a high interest rate? How much is the annual fee? Will the interest rate be lowered if you maintain a good payment history? Can you choose the day payment is due, so you can match it up with payday? Are there any bonus programs? What, if any, are the income requirements?
Don't just be grateful to get the card, you have rights and choices. Be most careful with the interest rates. Some can go as high at 22% - run, don't walk from that card. Anything under 20% is a decent find for an unsecured credit card for someone with bad credit history.
Make sure to obtain a credit report every so often to make sure your new credit card company is reporting your good payments. If they aren't, call and ask them to do that. It can help more than you know!

It takes time, but bad credit can be repaired. First, answer the question "what is my credit score"? and obtain credit report scores so that you find out where you stand. It may look bad, but there are credit options for everyone.