Introduction
Having bad credit isn’t necessarily enough to prevent you from getting a credit card. However, it can make it much more difficult to get a credit card with bad credit. There are some things that you can do in order to improve your likelihood of getting the credit card though.
Step 1
Apply for a credit card from a small retail store. These companies are usually more willing to give you a chance. Whenever your application is accepted make a small purchase with your credit card with bad credit then make sure that you pay at least the minimum payment each month, on time. This should only be a last resort though. Instead, you want to always try to get a Visa, MasterCard, Discover or American Express since these are more widely accepted than a credit card from either a single store or a chain of stores.
Step 2
Apply for a credit card from your bank, savings institution or credit union. This may improve their likelihood to give you a credit card with your bad credit. The reason for this is that they already have your business and know you.
Step 3
If you cannot get a credit card with your bad credit, then apply for a secured credit card. In order to do this you must open and maintain a savings account. This will act as the security for the line of credit that is extended to you. So, whenever you make a purchase with your credit card with your bad credit you will be drawing from a percentage of the money that was made as your deposit. Make sure that you don’t overspend, especially with this type of a credit card. Instead, buy small items that you have enough cash for. This will help you not purchase items that you can’t actually afford. It will also ensure that you will be able to pay off your credit card each month, which is important because most credit cards have an interest rate of between 18 and 21%. Whenever you don’t pay off your balance each month you will be spending more than you can afford. If this happens, make sure that you stop using your credit card until you are able to pay off the balance.
Step 4
Talk to a friend or family member about co-signing for a credit card for you. Their credit is important though so you will want to make sure that you choose someone who has good credit to help you get a credit card with your bad credit. They must be able to trust you too though because if you are unable to pay back the loan on your credit card with them they will have to do so or else it will appear on their credit rating as a blemish against them.
Step 5
Once you get a credit card with your bad credit, you will start to get offers in the mail from other credit card companies. You should never have more than 3 credit cards. Two of the credit cards should have a small credit limit and the other credit card with a larger credit limit so that you can use it in case of an emergency.
Tips
Whenever you are trying to get a credit card, make sure that you pay all of your bills on time.
Sources and Citations
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