Credit cards are not always easy to acquire, especially if you are looking for a relatively low interest rate and good borrowing terms. In fact, whenever you apply for a credit card, you will have to undergo a credit check, the result of which the credit card company will use to determine whether or not your application gets approved. If you have a bad credit history, your chances of getting a credit card with acceptable rates are quite low.
This is where bad credit credit cards come into the picture. Quite obviously, as the name implies, these kinds of credit cards are meant to be issued to individuals with a bad credit history.
How do you get a bad credit history? If you have missed payments or made late payments in the past years - bills, credit card payments, and the like - then you will probably have an issue with your credit history. Other red flags in your credit history include outstanding loans, many open credit card accounts with unpaid balances, and filing for bankruptcy.
If you have bad credit, and you absolutely need a credit card, then a bad credit credit card may be your only choice. When it comes to usage, there really are no differences between bad credit credit cards and regular credit cards. The difference lies in the applicable interest rates and other terms that might be slapped on to the agreement. More so, the credit limit for these kinds of cards are usually considerably lower than those for regular credit cards.