Getting a credit card when you have bad credit can sometimes seem impossible. It will be hard to get approved for a credit card when you have a lower credit score, as many lenders don’t want to take the risk.
But all hope is not lost even with your bad history, as there are still methods you can use to get approved for a credit card. Here’s how you can get a credit can with bad credit.
What Is Your Credit Score?
Go through your credit score first to know exactly where you stand. It is quite obvious that you know you have bad credit because you’ve tried applying for a credit card and failed.
There’re various sites, such as CreditKarma.com, where you can obtain free versions of your credit report. You can automatically receive a credit report from your email as well.
Bureaus such as Equifax, Experian, and Transunion can also provide you with a credit report.You can get a free credit report from these bureaus as guided by federal laws.
Don’t Look For Credit Cards Meant For People with Good Credit
If you want to get a credit card with your bad credit history, ensure you don’t aim at people with high credit scores. You’ll get demoralized when you check on their credit scores and fail to apply for your much-needed loan. Also, approving your credit will be difficult for lenders since the inquiries will be a bit high.
Look for a credit card that matches your situation. Applying for credit cards that require good credit will waste time and energy when you have a bad credit history. You can opt for secured credit cards, which require a one-time security deposit and it’s refundable.
Pay Debt If Possible
One of the easy ways you can get a loan with bad credit history is to pay off your pending debt if you’re in a position to do so. Try as much as possible to settle the existing credit balance before applying for a new credit card. The credit utilization ratio plays a very critical role in limiting or improving your credit score.
Pay down your balances to lower down the credit utilization ratio. If the utilization goes up, your credit score will drastically drop,which won’t be a good thing.
Remain Within Your Credit Limit
You should know your situation and stick to it while looking for credit cards. Even if you’re in dire financial need, don’t aim too high lest you jeopardize even the slightest chances your might have had.
Look for the best cards meant for people with bad credit, which are secured cards. You only need a security deposit to get these secured credit cards. You can also qualify for better credit cards if you use secured credit cards, as credit bureaus will give you a positive report.
The only thing you have to do is to avoid defaulting on your debts. After making payments on time, you’ll get back your security deposit. You can also check with your nearest retail store since they also approve credit cards that you can only use in their stores.