Looking for a credit card but have bad credit? While a little more limited, you do have options. If you have bad credit you may have to start out with a credit card with less attractive interest rates and lower credit limits, initially. If managed responsibly, even a bad credit credit card can give you the opportunity to rebuild and improve your credit in order to qualify for better rates and terms in the future.
An important note: Prepaid cards are not credit cards - no credit is offered by the card issuer. Prepaid cards do not impact your credit rating, and they do not report to the major credit bureaus.
If a traditional credit card is out of the question, a secured credit card may be your answer. These work by paying a certain amount down to establish a borrowing limit prior to obtaining the card. Secured credit cards are also a great way to rebuild your credit.
Individuals with bad credit can also try having a friend or family member co-sign on a credit card account, but this poses a risk because that person will also be responsible for any unpaid debt.
