No this doesn’t mean a credit card that is bad for you and will take all your money, this means a credit card that can help you if you’ve got a bad credit score. It might sound odd now, but getting a credit card can actually make if better if you have a bad credit score…
It all works out in the end don’t worry. The idea of a bad credit card is to make you take out credit, but more importantly make you pay it back. This allows future lenders and credit card companies to see that you have seen the error of your ways in the past and you have changed into a responsible person to whom credit can be feely given without risk. In theory the more credit you can get when you have a bad credit score the better; providing you pay it all off regularly and don’t miss a payment; missing a payment will ruin it all.
There is usually only one bad thing about a bad credit card, and that’s usually the interest rate; it’s usually through the roof! This is to make sure you don’t miss your payments, because if you do you will be severely punished by this interest rate, and not only that, your attempts at improving your credit score will be significantly set back.
However, most bad credit card companies will also ensure that your credit limit is not over what you are likely to be able to pay back. This is very important because it teaches you in future to only buy on credit what you can pay back at the end of the month.