One way to get a personal or business credit card with bad credit is to apply for a secured credit card through a bank or credit card company, according to Bankrate.com. To obtain this type of credit card, the applicant must put down a specific deposit amount which becomes a line of credit. Minimum monthly payments must be made to maintain good credit.Continue Reading
The deposit amount represents the maximum limit available for the credit card. Depending on the credit card issuers terms, additional monies may be added to the deposit over time to increase the maximum limit. In addition, most secured credit card issuers report spending and payment activities to credit reporting agencies. This can improve credit scores and help demonstrate financial responsibility, notes Bankrate.com. Those with bad credit should carefully research secured credit cards. It is important to compare fees, minimum deposit amounts and monthly account cycles and to find a bank or credit card company that regularly reports credit activity to credit reporting agencies.
Establishing a good credit history with a secured credit card can oftentimes lead to approval for an unsecured credit card. Unsecured credit cards are those funded by banks or credit card companies. These cards typically have a higher maximum limit than secured credit cards.Learn more about Credit & Lending