Applying for a new credit card is one of the most common ways to improve your credit score. However, you should know that not all new cards are the same. Some of them will have very high annual fees that act like subscription charges for the card. Some even have account opening fees that eat into your credit limit and raise your credit utilization rate. Be sure to avoid these types of cards, or choose an alternative credit card that does not charge these fees.

What’s a bad credit score?

The best way to avoid paying high interest rates on credit cards with bad credit is to pay attention to the terms and conditions. Most bad credit rating credit cards come with a lot of hidden fees, including account opening fees and annual fees. You should try to pay off your balance each month, but if this is not possible, you can carry the balance over to the next month. You should also pay attention to the annual percentage rate (APR), as lower APRs mean lower interest rates.

Before you apply for a new credit card, make sure you review your credit report and make sure everything is correct. If your credit score is bad, you may have to wait a year or two before applying for a new card. Credit reports are updated every 12 months, and you can request a copy online, by phone, or by mail.