Most credit cards that you get will be offered to you based largely on your credit score. People with a bad credit score will have a difficult time obtaining a credit card from banks and credit card companies. The good news is that people with bad credit can still apply for a credit card from some companies.
If you have a low credit score, then the risk will be greater when you are being considered for borrowing money on a credit card. If you want to apply for an unsecured card then this would mean an very high interest rate to compensate for the likelihood that you will not be able to meet some payment. You credit card limit will also be lower. And you will not be given any perks that people with good credit rating enjoy. Some perks that are given to good credit card holders are cash back or air miles.
It is possible for people with bad credit standing to get a secured credit card. There should be some kind of security against the amount that you are going to borrow. The credit limit of the credit card is determined by the balance on a savings or current account. So, if you have a saving account with a certain amount of deposit, there are some card issuers who will set the card limit at a slightly lower amount that the deposit in your account. However, it may be different terns for different lenders so make sure to check their terms and conditions.
IF you make further deposits to your savings account, then you may be able to increase your credit limit. IF you have been making regular payments, the card issuer may grant you an increase without requesting further secured funds. It is according to the discretion of the lender to increase the credit limit.
If you have bad credit standing, you can also apply for a joint credit account with someone who has a good credit standing. Financially, this is the best option as the terms will be the same as a normal card when it comes to interest rates. But you must be certain that you can make payments each month. If you cannot, your co-signatory will need to ensure that he is able to manage payments on your behalf. If he also fails to make payments then both credit scores will be affected.
If you shop around, you will be able to find the best credit card for bad credit. There are some lenders that charge an application fee and most lenders charge an annual fee on a secured credit card. Although these fees are small, you should beware of some less reputable credit card issuers that take advantage of your troubles and charge you with very exorbitant costs.
Now that you have a credit card with bad credit, you have an opportunity to improve your credit score by being responsible to pay your monthly dues.