Record foreclosures, job losses and credit card defaults in the last few years mean most people have a less than perfect credit history. However, having poor credit does not necessarily mean you cannot qualify for a credit card, although it may make things more difficult. Rather than viewing money problems as a character flaw, many banks and financial institutions are finally beginning to understand they can happen to anyone and are now prepared to give people a chance at obtaining credit.

Give an Explanation

If you have something major on your credit report, such as a loan default, it is worth explaining your reasons for your financial problems. Most consumers are unaware they can add a 100-word explanation to their credit report. This can be used to explain to creditors what led to the drop in your scores. Anyone who views your report is required to consider your explanation when making a decision. Be honest, whether it is because of health problems or divorce, creditors may to be understanding if you take the time to explain.

Secured Credit Cards

This involves depositing anywhere up to a few thousand dollars of your own money in to an interest-bearing account. A creditor than issues you a credit card with a limit that is equal to or just above the amount of your deposit. This is reassurance for the creditor, who does not have to worry if you do not pay your bill, as they will take any outstanding balance from your own money. A secured credit card is a good way to responsibly rebuild your credit quickly.

Expensive Credit

Another credit card option for people with bad credit is a subprime credit card. Also known as fee-harvesting cards, issuers usually charge a variety of expensive, upfront processing fees. Because this type of card costs so much it should only be considered as a last resort. The Credit Card Act of 2009 forced companies to cap their upfront fees, however, changes were minimal as their fees are still as much as 25-percent of the card’s limit.