Search by Credit Quality
Search by Feature
Search by Rewards
Search cards for Business
Search cards for Students
Search by Type
Search by Bank
 
Credit Cards for Bad or No Credit
How to get a Credit Card if you have Bad Credit?

It is true that having a bad credit can make you face a lot of hassles while getting a credit card. But, you can still have one. It is very important to be clear about what is exactly do you need.

A secured credit card is secured by a special savings one establishes with the credit card issuer which serves the purpose as collateral for his or her credit limit. Supposing a person deposits $500 in his or her savings account and then has a $500 credit limit. If you are not able to payback, the credit card issuer will take the money deposited in your savings account.

And for the unsecured credit cards as the name itself justifies they are unsecured. It means that on the basis of the details provided by you and your credit details you payment is decided. And in certain cases it can also be disqualify with the consent of the credit card provider.

Does that mean that it’s not worthwhile to get a credit card if your credit score has fallen below average? No, there are still many good reasons to apply. But it is important that you educate yourself on what the limitations and costs are, and set clear goals for how to use the card to your advantage. To come out a winner, you need to learn about the new rules that apply, and then pick the card that best meet your financial goals.

It entirely depends on your financial credibility which suits you more secured credit cards or unsecured credit cards. If you have made a choice to select secured credit cards then no doubt the process of approval is faster than the unsecured credit cards but as everything has a flip side. There are certain banks and credit card providers who can also make the matters worse.

The secured credit card is the best choice if you have a bad credit. No doubt nobody takes you seriously if you have a bad credit history. It takes a lot of time and effort to improve your financial creditability. You also want to improve your credit history as to get a credit card. The best and the simplest way to improve your bad credit history is to make the payments on time. Making your payments on time will also save you from paying high rate of interest. You should try your best in order to get yourself out from the bad credit situation.

Following are some steps that you should take into consideration to improve your bad credit:

  • You should try to approach the small companies there are chances that your application gets an approval. And if it does then you should start off by making a purchase and you should pay some amount on a monthly basis and that too within the time period.

  • You have the best option for you and that is the secured credit card just in case nothing works for you. All you need is to get yourself a saving account serving the purpose as collateral for your credit line. The amount will act as a little proportion for the deposit.

  • You can get any member of your family or your friend to jointly sign for the purpose of the credit card. It is better to choose someone with good financial background as the financial stand is given much importance. If you are not able to make a payment then they have to do it and they (Co-signer) will be at fault not you.

Following are some instructions for getting a credit card:

  • It is very important to keep on making the payments for your various other bills as to obtain a credit card. You should not possess more than three credit cards where two of them should be with minimal amount and only one should be with the maximum credit.

  • You should not prefer the credit cards for which you have to make a yearly payment. You should only prefer those credit cards which don’t cost you any yearly payments.

  • Just in case you are refused to be issued a credit card then you can ask for a written explanation justifying the refusal. You have the right to ask for the credit details and see it yourself what went wrong. Keep your expenses to the minimum. Preferably buy only those things for which you can make cash payment, by doing this you will restrict yourself from buying costlier products. Every company has its different rates of interest and if you are not comfortable making payments on a monthly basis then it is better to check all your expenditures.

Getting Unsecured Credit Cards for People with Bad Credit

Once your credit has deteriorated, the rules of the game change, and your options for getting credit are limited. While in the past, you were able to use credit cards to give your budget a cash infusion, that option is now harder to come by. Instead, getting an unsecured credit card begins to serve a very different purpose: to help you rebuild your credit more quickly.

The initial credit line that you will be given with these cards is quite low, typically around $300. In addition, because these cards cater to a pool of people that represent a higher risk, issuers generally protect themselves by charging higher fees to open and maintain the account.

The good news is that an unsecured credit card enables you to accelerate the pace with which your credit improves. You can view it as a first date; you are essentially building a relationship with the credit card issuer. While the card issuer initially is cautious, over time, more options will open up to you, as long as you exhibit discipline in your credit usage, make your payments on time, and don’t exceed your credit limit. Over time, the lender will begin to offer increased credit limits. Similarly, if you need a car loan or a mortgage loan, a lender that you already have a history with will be more likely to extend this to you.

Most importantly, many issuers of credit cards for people with bad credit report regularly on your credit usage to the three major credit report bureaus, enabling you to make fast strides in rebuilding your credit.

The terms of unsecured credit cards differ widely, so don’t just go with the first offer that lands on your door step. View the selection of offers on our website and compare the terms before deciding which card best suits you. Get unsecured credit cards here.

Next
Credit Card Advice Categories
 

Best Poor Credit Credit Card
UPside Visa® Prepaid Card
Copyright © 2008-2017 CardZ.com All Rights Reserved. Terms of Use | Privacy Policy | Credit Cards Advice | Site Map
Our Network: ValueLoan.com | DebtWatch.com