There are a lot of option waiting for you if you are in search of a credit card for bad credit. There are two main types of credit cards for bad credit, these are the secured credit card for bad credit and the unsecured credit card for bad credit. You can be able to build a new credit reputation through these types of credit cards as long as you will be responsible to pay on time. However, these cards have different fees and costs that you should know about. Even if you are able to provide other personal details including proof of sufficient income, you might only be allowed to choose one from these two categories of a credit card for bad credit since this will still be depending on the credit history that you have.
Let us first talk about the secure credit card for people who have bad credit. The secured credit card is a type of card which requires you to make a bank deposit, and the amount that you can use with your credit card will depend on the amount that you are able to deposit. Since you are able to deposit money in the bank already, your secured credit card would most likely be approved because they will not have to worry anymore if you can be able to pay them on time or not. The regular credit card that you are used to is like the secured credit card for bad credit. As soon as you are able to receive your monthly statement from the bank, you can choose whether to pay the minimum amount that is required of you, or to pay the full amount that you owe. Your secured credit card will have an interest rate, an annual fee, and other possible fees that you need to pay for.
The deposit that you made in the bank upon getting your secured credit card for bad credit will remain intact, therefore all charges made will be put together with your monthly or yearly bill and you have to pay for it as well. In case you will not be able to pay for the credit that you are making with your secured credit card for bad credit, the bank will be at ease since they have your deposit to rely on. Since there are other bills that might be charged by the bank, it would still be a good idea for you to pay your credit balance on time so that all that is left for you to pay are the fees that the bank will charge you for. If you do not want your credit to be further damaged, it might be best for you not to think about your deposit and to still pay the bank on time so that you will be able to retain your credit reputation.