Due to demand, despite the recent economic climate, companies are still willing to lend to people with bad credit. In the case of credit card companies, this offer comes in the form of unsecured credit cards for people with bad credit. That said, if you are indeed successful in your application for one of these cards, you will almost certainly have to face up to paying higher interest than other borrowers. Often this can reach levels up to 40% so it is imperative you have a plan in place to be able to pay off any debt you pile up on these high interest credit cards. You may also be hit with an annual fee and face additional steep charges for any late payments. That is why it is important to always pay off at least your minimum payment each month and never exceed your agreed credit limit. The more of your balance you can pay off each month the better.<
>It is often worth applying for a store card at one of the smaller retail stores, where, if your application is successful, you can make a small purchase and then be able to afford to pay off the minimum amount each month on time. When you have payed off this minimum amount on time for a few months, you can then use this as leverage in your application to one of the more established bank, credit union or savings institutions for another card.
If your previous credit history still prevents your application from being successful, you could still try going down the route of applying for a secured credit card. The disadvantage of this is that you will be required to open and maintain a separate savings account for the purposes of security. You could ask a family member or good friend with a better credit record than yourself to co-sign for the card to enhance your application.
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