They may get stuck with cards with high interest rates and high fees. And they'll have to start at square one to build up their credit. Signing on for a secured credit card is a good way to start. When you get one, the key is to make sure you can pay it off each month. With secured cards, a cardholder makes a savings deposit in exchange for a credit line.
Secured cards have annual fees and high interest rates.
Credit lines are typically hundreds of dollars rather than thousands. After a year of on-time payments, cardholders may be able to qualify for an unsecured card at a lower interest rate with a higher credit limit. As with any high-rate credit card, the best strategy is to pay off a secured card bill every month to avoid paying big charges for interest. A widow who shared a joint credit card account with her husband is responsible for all bills and payments on the account. You're creditors are not going to be so soft-hearted.