Financial Tips | Debt Management

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11/3/07

Getting a Second Credit Card Without Good Credit

First thing first; if you have bad credit, you should really evaluate your reason as to why you want a second credit card. If you have bad credit, that means that you were not using credit responsibly, and therefore, getting another credit card may get you into more trouble and more debt.

Reasons you should not get another credit card if you have bad credit include, but are not limited to: (1) to pay bills (this is probably the worst reason); (2) to go on vacation or any other trip; (3) to buy something you cannot afford; and (4) any other reason that does not include improving your credit report and raising our credit score.

If you have bad credit, your primary reason for getting another credit card needs to be to improve you current credit score. If this is your purpose, then I applaud your efforts and know what you are going through. Just know that your second credit card is not going to be as good as your current card.

First, because you now have bad credit, the second card is probably going to have a higher interest rate and a lower credit limit. Additionally, you may be subject to some fees that you did not have to pay for your first card.

Second, make sure that you do not get a card that has too many fees. The point of your second card should be to increase your credit score. However, you should not go broke on credit card fees to achieve this purpose. If worst comes to worst, do not get another card. Use your current card responsibly and gradually build your credit score over time.

The point is, do not put yourself in more debt just because you feel that a second credit card will help you achieve your purpose sooner. The ends have to justify the means, and thus, you should not obtain a card that requires the payment of tons fees and a higher interest rate. As I stated above, if you can only qualify for cards with high fees and high interest rates, do not get a second card.

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