People don't plan on losing their jobs or becoming ill, but it does happen and if I had a choice between eating, paying rent, or paying my credit card bill, guess which one is going to lose out, and then there goes my credit from excellent to good to bad to poor.
In my experience there are two types of Bad Credit Credit Cards.
One is a secured card, and the other has a much higher rate of interest.
Both can be used to rebuild your credit worthiness after getting back on your feet.
Secured credit cards are great for rebuilding your credit.
You send the credit card company a pre deposit amount set by the company.
This amount will be equal to your credit limit.
Pay over your minimum every month and send your payment in before the due date and you will build your credit up gradually.
Never miss a payment, be late on a payment, or go over your credit limit even by a small amount.
You don't want the company to ever have to take from your pre deposit amount because they want you to handle your account just like you would an unsecured card.
A great thing about this pre deposit amount that you send in is it can act as a savings account even earning a little bit of interest for you.
After establishing yourself with the credit card company, they may decide to give you a unsecured credit card or increase the limit on the one you have with them without having to make another deposit.
Secured credit cards are a good choice for anyone wishing to rebuild their credit history.
There are also some companies that will give you a card for the main purpose of rebuilding your credit.
A lot of these will come in the mail.
These credit card companies usually have a high rate of interest, or annual fees, or application fees, or all three.
Do your research on the ones you are interested in.
Make sure it is something that won't put a burden on you to pay back, because you want to rebuild credit and eventually get a better rate of interest later on.
Both of these types of Bad Credit Credit Cards will report to the credit bureaus on a regular basis and will help you to reestablish yourself in the eyes of the creditors.
Remember you might have to pay more interest at first, but as your credit greatly improves, so will your interest rates.
Rebuilding credit worthiness takes a little bit of time and patience, but is well worth it.
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