Deciding on what type of credit card to apply for depends on your past credit history. I had no idea how important maintaining good credit was until I lost my credit cards. You’ll want to avoid bad credit at all costs but sometimes we simply run into circumstances beyond our control.

Many people lose their privilege of having a credit card due to missed payments and create a bad credit rating in their credit bureau file. I had previously owned six cards and lost all of them because of a change in my financial situation that made it impossible to keep up payments. The result was mountains of debt and bad credits.

If you need to rent a car or book a hotel in the future, good luck. These companies want a credit card number in case there is damage or if someone takes something they shouldn’t have. I’ve also been stuck when my car broke down, only to find when I tried to rent one, the rental company refused me due to lack of a credit cards as a result of my bad credits.

Booking vacations and hotels are a struggle without a credit card as well. On a recent business trip I had the embarrassment of having to pay with cash at check-out time. I’m felt as though they must have known I didn’t have a credit card and thankfully my business partners weren’t there to see me. I can now proudly book hotels, vacations and car rentals with ease with my First Millennium Platinum Card.

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In this article, I will expose five mistakes people make with bad credit cards. Unfortunately many consumers with poor credit unknowingly hurt their credit score and waste excessive money on unnecessary fees. Bad credit is a lucrative industry and corporations know consumers are motivated by two major instincts. Fear of not being able to get credit and greed to obtain something for nothing.

Unfortunately consumers with problem credit have fewer choices when it comes to credit cards. Credit card companies assess higher fees and penalties for people with damaged credit so it’s important to make your decisions carefully. If you have poor credit and you’re in the market for a prepaid card or secured credit card, knowing about the following list of mistakes will help you avoid paying unnecessary fees or ruing your FICO score.

1) Non-bank Catalogue Cards

If you receive a pre-approved “gold’ or “platinum” card with a high limit and no credit check required, beware! These cards typically require you to purchase items only from the stores catalogue and scam you into paying merchandise that is overpriced by as much as 50% or more. Also these companies seldom report to the credit agencies.

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