Should I Get a Credit Card, Even If I
Have Bad Credit?

Maybe you have had a bankruptcy in the past. Maybe you were young and got yourself into a hole with debt. Whatever the reason for bad credit history, now your credit score isn’t great. So, should you get a credit card? There are pros and cons to getting a credit card even at the best of times, and credit cards for bad credit should be considered carefully. When someone’s credit isn’t great, credit card companies have to levy fees and interest to off-set the risk of that person spending money on a credit card and then not paying the bill. This is especially true if you’re getting an unsecured credit card for bad credit – secured credit cards have a deposit to protect the credit card company, and unsecured credit cards don’t.

On the other hand, it’s tough to improve your credit without a credit card. When you get a credit card, you’re establishing an active credit history. The more new positive credit history you have, the more old credit mistakes/negatives are balanced with the new credit positives. Some of the best strategies to improve your credit are:

 

  • Consistently paying your bill on time
  • Keeping your balances low as compared to your credit limits
  • Keeping your account open to build a longer credit history as a good cardholder

The drawback, of course, is that people can fall into the trap of leaving balances on their credit cards or spending beyond their means. If you’re going to get a credit card, it’s important to make sure you have a solid budget to pay off your credit card every month.

Budgeting

A budget makes it easy to use your credit card wisely. One good option is to use your credit card for one of your necessary, budgeted expenses (like your internet bill or groceries) and then pay it off immediately. Over time, your credit history will show that while you use your credit, you always pay your bill which can be helpful in building up your credit score.


It can be scary to decide to get a credit card for bad credit, especially when you’re used to just using the cash in your pocket. Remember that having good credit can unlock a lot of doors and be a positive tool for your future – you may get lower interest rates on loans, qualify for better apartments, and your credit score may even be a factor in job background checks! While there are certainly other things you can do to improve your credit, using a credit card wisely is one of the strongest tools in your toolbox.

POWER UP YOUR CREDIT!

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