Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

Bad credit holds a stigma, but it’s not uncommon. About 20% of Americans have a credit score below 600.

Thankfully, it’s not impossible to build your credit back up. One of the best ways to do so is to get a credit card and use it for routine purchases. Unfortunately, many Americans struggle to get access to credit.

This is where credit card offers for bad credit come in. They can seem like a miracle after being repeatedly declined. Still, it’s important to be wary before signing a contract.

To find out if credit card offers for bad credit are worth it, continue reading below.

What Is Bad Credit?

Credit has existed for thousands of years. Even in 3500 B.C., people used loans to expand their agricultural business. Throughout all of history, people have needed some extra financial help to accomplish things.

In America, tracking credit goes back to the 1800’s. Lenders didn’t want to loan money if there was a risk it wouldn’t be returned. Unfortunately, when people fall on hard times, default happens.

FICO credit scores range from 300 to 800, which the former being bad and the latter being good. If you’ve missed many payments on past loans, those failures are recorded and affect your credit score.

Anything below a FICO score of 650 is generally seen as bad credit. Loan officers will review your credit report and deny you loans based on how low your score is.

Unsecured Credit Cards

There is generally just two types of credit cards – secured and unsecured. Unsecured cards are the most common type.

Unsecured cards are defined by the lack of collateral needed to have one. That means that if you default on these cards, the companies can only resort to the court system to get their money back.

As a result of the nature of these cards, it can be difficult for those with bad credit to be approved for one. However, unsecured credit card offers for bad credit do exist – like this credit card.

The only issue is that unsecured credit cards for bad credit often have exorbitantly high interest rates, so make sure to look at the fine print.

Secured Credit Cards

Secured credit cards are essentially the opposite of unsecured credit cards. They require some collateral for you to be approved for one. This collateral is typically cash made as a deposit before the account opens.

Secured credit cards are an excellent credit stepping stone. Making payments on time can build your credit until you qualify for better cards. They also have much lower interest rates due to the security deposit.

Credit Card Offers for Bad Credit and More Info

Credit card offers for bad credit won’t have the best rewards or cashback rates, but they can help you improve your credit. The purpose of these cards is to help you rebuild your credit and improve your FICO score.

Once your credit is up, you can apply for the fancy cards with great perks. You’ll be in a great financial position to use your credit to benefit yourself.

For more financial advice and recent news, don’t forget to stop by our finance page.