If you have bad credit but still need a credit card, it will be more difficult to get a new credit card but not impossible. Before we tell you how you can get one, let's first examine your reasons for wanting another credit card.

1. If you have a bad credit history with low debt due to bankruptcy or a Debt Management Plan, then seeking a new credit card can REBUILD your credit score. However, with a bad credit history, the credit card companies will charge you 20 to 30 percent annual interest rates. If you still want a credit card, read our instructions below for more information on how to obtain a credit card with bad credit.

2. If you are the average American with more than $8,000 in credit card debt AND HAVE BAD CREDIT - you do not need another credit card - you need professional help. Recent changes to the bankruptcy law (The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) will prevent the majority of credit card debt laden Americans from discharging their debt under the "Fresh Start" Chapter 7. Instead, the legal system will stear you towards Chapter 13 Bankruptcy where you will still have to make payments under a court guided repayment plan. The new law also requires you to attend Consumer Credit Counselor meetings, money management meetings, (both at your expense) and will end up costing you higher legal fees for your attorney to guide you through the new law. Seeking out a ANOTHER credit card when you already have bad credit and high credit card debt is NOT GOING TO SOLVE YOUR PROBLEMS. It's only going to make your problems much worse. If you have a Shopping Addiction and credit problems, you should seek the help of a Consumer Credit Counselor who can guide you to financial freedom and zero debt.

How To Get a Credit Card when you have Bad Credit

When it comes to rebuilding your bad credit score with new credit card, you basically have two options.

1. A Secured Credit Card, which means that your bank or credit card issuer will require you to deposit a certain amount of money as collateral. This amount can range from $300 to $2,000 - depending on the credit limit for the secured credit card for bad credit applicants. If you fail to make your monthly payments, the deposit will be used to satisfy the debt. Some banks or credit card issuers will allow you to deposit 50 percent of the credit limit and pay you interest on your cash deposit and your interest rates will be lower than with a unsecured credit card. However, you will probably also have to pay application and processing fees.

2. An Unsecured Credit Card is possible to obtain if you have bad credit. However, as a higher credit risk you WILL pay more in interest charges. Recent deregulation of the credit card companies allows them to charge loan shark interest rates of up to 30 percent per year. If you max out a $2,000 credit card at 30 percent annual interest, and make monthly payments of $80 per month, it will take you 10 Years and 5 Months to pay it back. The total amount you'll pay back to the credit card company will be $4512. If you put $80 in the bank each month, you would have $2000 in 2 years.

If you are still not deterred about getting a high interest credit card for bad credit - , you can follow these tips:

1. There are credit card institutions, such as Orchard Bank, Direct Merchants Bank, and Centennial Bank which specialize in credit card offers for those with bad credit.When you apply for a credit card with these companies, remember to READ the fine print. The advertised low APR (annual percentage rate) is usually just a ploy. That's the APR for those with GOOD CREDIT. However, YOUR APR will depend on your credit score - and it will probably be 20 to 30 percent per year.

2. Go to your bank, credit union or lending institution that you do business with. They might be willing to help you if you are a long-time, loyal customer.

3. Ask a family member or friend with a good credit score to co-sign for a credit card with you. A word of warning though: if you can't or won't pay back the debt, your family member or friend will have to and at the very least, this will strain your relationship with them and at the worst - hurt their credit score if you fail to make your payments.