You can get a credit card with bad credit, but you will pay higher interest rates and fees. You can qualify for a home loan with bad credit, but you will pay hundreds of dollars more per month than someone with good credit. The reason is that lenders are allowed to charge different interest rates to different people.

They are not allowed to discriminate because of race or sex, but they are allowed to discriminate because of past credit history. This is why many people are interested in repairing bad credit. These people know that they many be able to get credit, but they will pay more.

Some companies actually target persons with bad credit. They know that sometimes a person who has negative credit history, and has not tried repairing a bad credit history, will work hard to make their payments on time. They know that these people are sometimes desperate for credit and therefore unconcerned about interest rates.

If you have ever declared bankruptcy, you may have received an offer for an unsecured credit card shortly after the bankruptcy was finalized. You may have found that the fees and interest rates were exorbitant and hard to pay off. Accepting offers like these may not help you in your efforts at repairing a bad credit history. If you charge up to your limit and/or are unable to make your payments on time, then accepting a credit card with bad credit will make it even worse.

Repairing a bad credit history includes many factors; correcting information on your credit report, removing negative items from your credit report, negotiating with creditors to remove negative items, having excessive inquiries removed and building good credit.

One way to build good credit is to obtain a secured credit card which reports payment history to the credit bureaus. You can get a secured credit card with bad credit. You should shop between the different banks that offer these cards since interest rates and fees vary. A secured credit card is secured by a deposit into a savings account.