In these current difficult financial times there is most definitely a need for the bad credit card to help where other loans are not available. So many people, compared to only a year or so ago are now jobless and so many people are either having problems paying for homes or may even have lost their home that banks have a responsibility to try to help out where they can. In this way they can ease the current match that many people have and also slowly begin to build up FICO scores and credit ratings again.
Once you make your application for a credit card and if you are accepted you can then begin to build your results again. However, not all cards are equal here. Although if you make an application for a pre-paid card you will actually be guaranteed to be accepted, no matter how bad your credit rating is, this is far from the case for all cards.
And the issue with the pre-paid credit card is that no matter how much you spend each month using it and no matter how diligently you use it, it will not be count toward improving your FICO score or credit rating.
In this case what you need to do is apply for one or more of the following:
- Store card at a small retail store.
- Apply to your credit union if you have one for one of their cards.
- Apply for a secured card (where you put a certain amount of your savings up as security for use of the credit card).
- Ask a friend or family member to sign as a co-signee to the card. This way their credit history is taken into account as opposed to your own.
Do not give up hope though. I too have a lot of experience with the bad credit card (I experienced personal bankruptcy) and feeling sometimes that I was actually having to beg for one from financial institutions. Finally however, I am moving slowly but surely forward to re-building my own credit score and there is hope for all of us.