Does a Bad Credit Credit Card Really Exist?

Does a bad credit credit card really exist? A bank or credit card company such as Capital One, Bank of America, Chase, or Washington Mutual uses a number system when they receive an application for credit from you. They give a numeric value to several creditworthiness characteristics. This is used to gauge your past and future willingness and ability to pay back your debts. This is based on your previous credit history, which is a ongoing record of how you handled past credit transactions. It is this score that they use to then determine if they will grant credit to you. If you have a past history of late payments, missed payments, a consistent pattern of going over credit card limits or a bankruptcy you would be considered a person with bad credit.

So now you are thinking you are condemned, it's hopeless. There is no one who will grant you credit or give you a credit card ever again. Well you may want to think again. Individuals with terrible credit history's and scores who have met financial disaster can get credit card offers. So in answer to the question "Yes" bad credit credit cards do exist, normally in the form of a secured or prepaid credit card.

Credit card companies, finance companies and banks all need customers, even people who have had past credit problems. So they will target individuals with a poor credit history with these prepaid or secured bad credit credit card offers. They have a new customer, and the person who receives the credit card can rebuild, reestablish, their credit and have all the benefits of carrying a credit card.

The difference between a prepaid and a secured credit card is minute and both are very good bad credit credit cards. A prepaid credit card you would add money to the account. Your credit limit is then what the amount is that you deposited and would be reduced with each purchase and increase with each deposit. A secured card is where you would open a savings account with the financial institution. Your savings account then would be the collateral for your credit card. Some institutions make your savings account the amount of your credit and others will make the credit of your card one and one half or double the savings account deposit. The positives of these kind of credit card accounts is you can not get into a bad financial situation with them. They look and report the same as a regular credit card and most banks or credit card companies will gradually raise the credit card limit without additional funds being deposited. It is also a great way to rebuild your credit history.

In today's world a credit card is necessary for many things such as motel reservations or in case of emergency. So you can see even if you have a less than stellar credit history all is not lost. We suggest that you take advantage of a bad credit credit card offer. Many times you will receive these in the mail or you can look online for companies that offer such programs.