The variety of financial services now available is diverse. Gone are the days when there were only a few credit card companies operating, today there are many more players. Choosing good or bad credit cards often comes down to the amount of time and effort you are willing to put in to researching the latest offers and deals.

The main concept of credit cards is straightforward. A typical card will have a credit limit that you can spend up to each month. You will then be sent a bill at the end of each monthly period for every item you have bought.

However much you spend each month will also be charged an interest rate. In most cases it is the interest rate that will determine whether a credit card can be classed as good or bad. A rate that is high may be difficult to cover at times when you have a lot of payments to make.

If you have had problems with loans or credit cards in the past then a credit card that is offered today may come with a higher than expected interest rate. But it may still be possible to find a good deal even if you have a bad credit rating. Try to search through as many websites that offer credit cards as possible and you may find a special offer.

You should also understand that there can be other charges involved with having a credit card. There can be an initial set up fee as well as a yearly service charge.

If you have been turned down for credit cards on many different occasions then it may be worthwhile applying for a pre paid version. These are excellent for people with a poor credit score. They can be used in the same way as a regular card but the only difference is that you need to place cash on the card before making a purchase; there is no monthly bill involved.