Getting a credit card, especially if you have a poor or bad credit history, can be really daunting. It is essential in this era of digital economy to have a credit card to manage and diversify your finance. However, it can be a bit complicated for people with bad credit scores when it comes to getting a new credit card. Generally, credit card providers or companies do not lend to people with bad credit history. However, some credit card providers are sympathetic to these people with adverse credit history and score. These companies offer credit cards for bad credit designed for people who cannot get a new credit card from their own banks and other financial institutions or lenders because of their poor credit history. Many people who need a credit card can rely on these credit cards for bad credit and improve their credit history over time by using these credit cards sensibly and apply for better credit cards in future.
Credit Cards for Bad Credit Explained
People with bad credit have difficulty in getting credit cards from banks, credit card providers or companies. There are many reasons why a person’s credit scores and history is bad. If you have not ever had a credit card, bank account, you will have most probably no credit history at all. You start building up your credit scores and history over time by running your bank accounts, paying your utility bills, mobile or cell phone bills, rents, etc regularly. It may actually take some time to build up your credit scores and credit history. If you miss on a payment your credit history will be affected adversely. Some people may find it hard to pay off their existing credit card bill, utility bills and other debts on time and regularly. As a result, their credit history suffers seriously eventually. If their credit scores are below acceptable or standard level, they will almost certainly not be eligible to get a new credit card and other loans from banks and other lenders. This is where credit cards for bad credit come in to help these people who cannot get a normal or good credit card.
If you have never had a credit card, your credit history may be poor or not exist. You cannot get a credit card with bad credit from a reputable bank or credit card company. But, if you apply for credit cards for bad credit and meet the requirements then you can easily get one and start building your credit history and scores in order to be eligible to apply for and get better credit cards in future. So credit cards for bad credit help improve your credit history. There are some credit card providers who provide credit cards for people with bad credit scores. When you get one such credit card, make sure to use it properly. Over time, you will build a good credit history. It will help you get a better credit card to suit your need. So, people with bad credit are not completely hopeless since there are lenders who are eager to help those people offering credit cards for bad credit. People with bad credit look for credit cards for bad credit because they can get one and use it to improve their credit history. Besides, they want it for other benefits a credit card offer. Since they cannot get good credit cards with low APR, they rely on credit cards for bad credit although the APRs of these credit cards are a bit high.
Credit cards have become such an integral part of our daily finance that it is hard to imagine life without having one in modern societies. Getting a new credit card can be always exciting. You can get numerous benefits from credit card. But if you have poor credit history, you will be denied a credit card almost on all occasions. Applying for credit cards for bad credit is the best and often the only option for you if you have a bad credit history. Once you get a credit card for bad credit, start using it wisely. Always pay off the money you owe to your credit card company on time and regularly. Check out with a reputable credit rating agency to see if your credit scores have increased. If there are any errors on your credit file with the agency request them to correct it. Use your credit card for bad credit sensibly, always pay on time, reduce your debts and check your credit report to improve your credit history. Once your credit scores have increased, you can apply for and get better credit cards, but for now you will just have to stick to credit cards for bad credit companies that offer them.
Getting Credit Card For Bad Credit
Normally, having poor credit is not good for personal finances, and especially when it comes to borrowing a loan. But do not despair! Whether your credit rating has dropped due to excessive medical debt, a job loss or bad money management, you can still raise your credit with time. And though it may seem a bit tough, you can even get a credit card with bad credit.
How to get credit card for bad credit
- Go for a secured credit card – This type of credit card allows you to make a set amount as security deposit (this will serve as the credit line or limit) with the issuer. So for instance, you place a deposit of $150 and your credit line is $150. You use your secured card like other credit cards ─ charge items and pay the bill. Be sure to ask the issuing bank or card company to report your transactions to all of the credit bureaus to build credit. With time, you can graduate to the regular, unsecured card and even get your deposit back if you close your own account.
- Include statements in credit reports – Another way you can get a credit card for bad credit is adding a statement to credit reports at all the 3 major bureaus: Experian, TransUnion and Equifax. In the statements, explain each negative item that has contributed to your bad credit score. Companies or banks that pull your reports might be convinced of your honesty, particularly if these circumstances were not induced or were completely out of your control (like divorce or medical debt).
- Apply for subprime credit card – This is another option for people with bad credit, but it should only be a last resort! Subprime cards charge high fees and interest rates, and you have to make sure you pay them off and on time every month. Proper use of these cards can, with time, boost your credit as well as help you qualify for the regular, less costly cards.
Be sure to checkout our other articles here on our website, which reveals and suggestions more resources for getting credit cards for bad credit.