Most of the time, people who either have bad credit or no credit will have a hard time getting a standard issue credit card. However, there are credit card issuers who offer cards designed to build credit for those who have not yet started credit building and for those with bad credit who want to rebuild their credit history. These cards are sometimes referred to as credit builder cards.

With this type of credit card comes some security features for the bank or card issuer. For example, because of the higher risk of non-payment from someone with poor or no credit, the interest rates on these cards are higher than on cards for people with good credit. With a credit builder card, as long as the balance is paid on time every month, the user gradually builds up a better credit rating.

If the cardholder’s credit rating improves and stabilises, they may be offered a standard credit card with a better interest rate. It is important to note that credit cards for people with bad credit should not be used for frivolous or unwise spending, but should instead be used to show the card issuer that the cardholder is practicing responsibility with his or her credit. As the cardholder continues to be responsible with the card, their credit rating will gradually improve, leading to better credit terms in the future.