It sounds like you have a charging problem. So I would say NO do not apply for a new credit card. Plus you are still paying off old debts. What’s going to happen when you start charging again and then you have new and old debt to pay.

Needless to say you should keep doing what you’re doing… get yourself out of the hole before you do anything else.

You said you bought a new car which is a step. Having a car payment every month (if you have one) and not getting behind on it is going to build your credit for a start. You don’t need to start adding more debt already if you are just getting out of it.

My suggestion is maybe having a debit card. Use it only when you have to and it’s going to come directly out of your account. Without over withdraws etc you should be fine.

All these credit cards want you to get new ones because you are starting to get to end of your old debt. They want new interest and more money now… So stay away until you are completely financially secure.

No-name banks tend to have less competative interst rates than big named companies. They’re big-named for a reason, they’re competative in the industry to get your business. The little guys aren’t on their feet yet so they can’t afford to be as competative. You are right, they probably got your name from the car purchase.

I suggest: It sounds like credit cards are a bit of a weakness for you. I would reccomend only 1 credit card for you, set aside for emergencies, and with a leading bank since they probably would get you the best interest rate.

If you want to build your credit, I HIGHLY reccomend personal loans of small amounts. They’re just as effective for building credit, usualy have about the same interest rates as credit cards but once you pay it, you’re done. You won’t keep building yourself into debt like you do with credit cards.

Not sure who’s sending you letters, but you can find a complete list of REPUTABLE credit card issuers for bad credit here:

Yes, if used wisely– these types of offers can help build up your credit and improve your credit score. Just make sure you make regular, on-time payments!

Good luck!