Credit cards for people with bad credit or no credit

You’ve decided you’re ready for a credit card. As a young consumer, this is an important step for your financial future. For those who are not new consumers but are ready for the next step after recovering from previous credit problems, this can be an important step in their financial recovery.

Consumers who are getting a credit card for the first time and those who are applying for a credit card may find that the credit card application process contains a large “catch-22.” To get a low interest rate credit card, you must have a good credit score. As a new or recovering consumer, you may have no credit or bad credit. Many of you are forced to put up with years of high interest rate cards or must apply for unsecured credit cards that have high processing and membership fees.

Take heart! Because credit card companies are always looking for new applicants, you may be in a better position to negotiate than you previously thought. For those of you who are interested in getting your first credit card, consider their offers and apply wisely. Most first-time applicants can easily get an unsecured credit card as long as they make their payments on time and pay at least the minimum balance. Once you are issued your first credit card, you will find that you may receive offers from other credit card companies looking for your business. The temptation to take advantage of online applications that offer instant credit card approval should be tempered by your desire to maintain a good credit standing. Overusing and overextending your credit can be dangerous to your credit score.

For consumers recovering from a period of financial hardship, getting a credit card is a bit more difficult but by no means impossible. To avoid exorbitant fees, stay away from those tempting offers for a bad credit credit card. These cards typically charge up to half of your credit limit just to get the card. Avoid cards with annual fees, application fees, and be sure to look for other hidden fees. For those of you with few options, getting an unsecured credit card may be impossible without a cosigner. As long as the card is relatively free of fees, a secured card may be the way to go. As long as you’re sure you’re making at least the minimum payment each month, you can rebuild your credit rating within a year or two and then apply for an unsecured credit card that meets your needs.

Young consumers and recovering consumers have special needs, but getting credit isn’t impossible. Be sure to shop around for the best credit card rate and offers that have reasonable or no fees to get the best deal.