By now, we’ve all heard the horror stories coming from the sub prime mortgage crisis that has hit the USA and other parts of the world. Even people with little to no knowledge of economics now know far too much about how the economy is doing and how the sub prime scandal played its part. But there is a whole other side to sub prime lending that many people don’t know about. If you have poor credit and you are looking to rebuild it, you will likely be prescribed the hair of the dog that just bit you. The main problem, obviously, is not getting bit all over again.

So, you’ve found yourself drowning in credit card debt but you’ve made the adult choice not to declare bankruptcy and to pay off your balances a bit at a time. But what are you and your damaged credit rating suppose to do until then? The answer might actually be getting an additional credit card. The difference isthat this time, you are going to use it wisely.

There are a whole slew of credit card companies out there that cater to the sub prime (sub prime essentially means bad credit) market. Card companies like Orchard Park, among others, deal almost exclusively with sub prime lenders. Now, these credit cards are nothing to write home about. In fact, most of them really stink. But, if you have bad credit and more traditional credit card companies continue to turn you down, you need a credit card to help reestablish your credit rating and these cards are the next best thing to a secured line of credit. So, what makes these cards so undesirable? Let’s take a look.

If you find yourself in need of a sub prime credit card, be prepared to get terms that aren’t exactly ideal. Many of these cards have an annual fee, but not all of them. Some of them may also have additional fees on top of the annual fee. They will likely have an interest rate over 20-percent, sometimes as high as 24 percent, although the limits vary by state. If you agree to get one of these cards, it is extremely important that you don’t ever miss a payment or are late with a payment. Many of these cards will ratchet up your interest rate to the maximum allowed under law, so it is extremely important that you never miss a payment, even if you have to send in the minimum. So, if you are sitting there asking yourself if it is really worth it. Unfortunately, the answer is yes. If you can get one of these cards and use it responsibly for a period of time (about a year), your chances of getting a more reasonable card are significantly higher. Remember, once you get a better card, don’t cancel this one without trying to get the card company to change their terms. Once you cancel the card, it will negatively affect your credit rating.