One drawback to credit cards for people with bad or no credit is that they typically come with very low credit limits ($300 to $500).

Additionally, when fees are deducted from this it can reduce your available credit to only about $100.

Having that $100 in available credit may not seem very useful at first, but it’s important to remember that your first credit card (or first card after some credit problems) should be used to build or reestablish your credit and not so much as a financial tool.

If you have a credit card with a very low credit limit, try to use it at least once every month, and then pay the card off once a month. Be SURE to be on time!

After six months, call the credit card company and ask them to increase your credit limit, which they most likely will.

It may be a small increment at first, but repeat this process every six months and after a year or 18 months your credit limit should grow to something useful. Also, after you have made on-time payments for this long, you may want to apply for another credit card with a lower interest rate. Chances are a new card will give you a higher limit, too.

If you are still struggling with poor credit, realize too that any credit limit on a new credit card will reflect other credit you have available, too. Somebody with poor credit but three open credit cards will get a lower credit limit that somebody with poor credit who currently has no credit cards.