Having the ability to have access to an ongoing line of credit is a wonderful thing - it provides much freedom to buy what or want/need, without having to wait while saving the necessary funds. Credit cards provide this type of financial freedom. For people that have a good credit record, there is no shortage of credit card options at their disposal. In fact, people with good credit can receive and endless number of solicitations for credit cards. If you have bad credit however, you may not have seen too many of these solicitations in the mail. Don't fret, there are many credit cards options for people with bad credit, you just have to put a little effort into looking for them.

Bad Credit Credit Cards - Credit Limit

If you have bad credit, at some point in your recent past you have failed to make a payment or two on a credit obligation. So, while a prospective lender may be willing to give you a second chance and provide you with a credit card, the lender will likely limit the amount that you can borrow at any given time - probably $500 - $1,000. Once you start using the card and make your monthly payments on a regular basis, you can ask the lender if they can increase your credit limit (they may even offer a credit line increase without you asking).

Bad Credit Credit Cards - Interest Rate

When you apply for a bad credit credit card, don't expect to get any great deals on interest rates. Lenders will likely charge you the maximum interest rate allowed by law (since you are considered a credit risk). Since your interest costs on outstanding loan balances will be high, you should make it a point to pay off everything you charge when your monthly statement arrives. Once you have proven your ability to responsibly handle the credit card, you might be able to request a reduction in the interest rate charged, or be able to apply for a different card that offers a more favorable rate.

Secured Credit Cards

Many lenders provide secured credit card options for people with credit problems. With a secured credit card, a lender will require the borrower to put money into an account (i.e. $250-$1,000). When you use the credit card, any charges made will deducted from the funds you put into the account. Your account is replenished when you make your monthly payments. Since you are putting your own money upfront into an account, a secured credit card is not the best option if you are in a financial crunch, but instead allow you to enjoy the conveniences that a credit card can offer.

The important thing to remember with bad credit credit cards is that you are trying to rebuild your credit rating. You may have to accept whatever terms a lender is offering, until you can prove you can handle your credit obligations. Once you have proven this, your credit rating will start to improve over time, and open up more credit opportunities. You know this will happen when you start receiving credit card solicitations in the mail.