The 3rd poster has the right idea. Check to see if secured cards are offered where you do your banking. How it works is simple, either your savings account or a seperate account you can make deposits in is used as collateral while you're establishing credit. This is better than the unsecured card offers for bad credit becuase at least you have a fair shot of getting the deposit back sometime later on as opposed to getting an unsecured card and paying an obscene amount of fees before the card even gets to you. A secured card also teaches how to manage a credit card properly since you're placing your own money at risk with the deposit. Also the deposit could and should be used to start up an emergency fund once the card does convert to a regular card. This way, you don't have to rely so heavily on your credit cards.
The best way to manage the account would be by making SMALL purchases that can be paid of on time every month, while increasing the limit by adding to the deposit. Usually after a year or so, you get the deposit back and a regular card.
I posted several links to some secured card companies, in my personal experience, Bank of America offers the best secured card overall.
I hope this helps, good luck!
Link(s) to secured credit cards:
· 1 decade ago