The first thing that you should be aware of is the fact that credit cards used to build credit come with various negative aspects. For instance, most bad credit credit cards have abnormally high interest rates. There are two theories that I personally have for this influx in interest. First of all, in order to "cover their losses" so to speak, by keeping this cards bring in high interest, the banks and other lending institutions can make money even though a certain percentage of those accounts are going to default. This is the reason that most people will give when asked why these types of cards have such a high APR. Personally, I think it is just an excuse. I think that banks try to make as much money as possible. If they can get away with charging a certain group of people more, then they are going to do it.
Another down side to using these types of cards is that they often have fees associated with them. You may literally have to pay for the privilege of using this card. Though it may seem like a good idea at the time, many of you may not be singing the same tune when you finish paying off all those fees.
While credit cards have been known to help increase your credit rating, they are not even close to the best method of accomplishing this and may come at a much bigger cost than you originally thought.
