Resources for people with Bad Credit & information on Credit Reports, Debt Consolidation, Auto Loans, Mortgages, & more.

Bad Credit Credit Cards Resource Guide

Secured Credit Cards

A secured credit card is a card secured by a savings account established by the borrower. The credit card company will deduct payment from this account if the borrower fails to pay. The credit limit is usually equal to the amount of money in the bank account. The amount required to deposit ranges from few hundred to several thousand dollars. You may also have to pay application and processing fees, so before you apply make sure to ask what the total fees are. Usually, a secured card requires an annual fee and has a higher interest rate than an unsecured card.

If you need to establish credit or repair bad credit, a secured card is the solution for you. These cards are very easy to obtain since they present no real risk to the creditors. So, you can use the card for at least a year, pay the bills on time, and you will have some good credit established. Make sure not to carry a balance though, try to make just a few purchases per month and pay it off in full every month.

When comparing credit card offers, make sure the issuer reports to all three credit bureaus. If your card issuer doesn’t report to a bureau, the card won’t help you build a credit history. Also, find out what kind of account the deposit is required to be in. You'll want to know what interest your deposit will be earning.

Student Credit Cards

Using a Student Credit card is a great way to establish credit history. They can also be a great cushion in case an emergency happens, allow you to shop online, and give you protection for your purchases. There are, however, some points to keep in mind before obtaining a student credit card:

1. Fees - Know what fees will be charged. Here are some typical fees:

Finance Charge - interest charge on unpaid balance every month
Annual Fee - a fee just to have the card, charged to you annually
Cash Advance Fees - Cash advances are extremely expensive, try to avoid them
Late Payment Fees - Not only to you get a fee if you pay late, but your interest rate may be raised also

2. These are real credit cards, so be sure you will use this credit only if you're certain you will be able to repay the debt. If you miss payments or make late payments, this will stay on your credit report for 7 years.

3. Don't settle for the first offer that comes your way. There is great competition among student credit card issuers, so use this to your advantage. Compare offers carefully and choose the best!

Credit cards are an extremely helpful tool for a student. While providing security and convenience, a student can build a credit history that can secure other consumer loans, jobs, and even lower insurance rates for the future.