How to Get a Credit Card with Bad Credit

How to Get a Credit Card with Bad Credit

Good Credit Cards for Bad Credit

Not all traditional credit cards are meant for people with high credit scores, some consider individuals with bad credit, but they are few. There are some credit cards that you can easily qualify for even with poor credit history and credit cards that improve your credit score. For instance, the Capital One Classic Platinum approves applicants with credit scores as low as 577 and has a regular APR of 22.9% with an annual security fee of $39. The annual fee can also be waived at your request. This credit card is undoubtedly ideal for individuals with bad scores. 

Unsecured Cards with No Deposit Required

Another option for people with bad credit looking for credit cards could be unsecured credit cards. These credit cards require no security deposits, unlike secured credit cards, making them an ideal option. However, unsecured credit cards for bad credit often charge high transaction fees and come with a high-interest rate or APR to compensate for the financial risk involved in lack of credit. Nevertheless, if used responsibly, they provide an effective way in which individuals with bad credit can improve their credit scores and get an unsecured card with better conditions. 

Secured Credit Cards

A secured credit card is just like a regular credit card but requires a cash security deposit which acts as collateral for the credit limit. Although most borrowers shy away from secured credit cards, it is important to note that a secured card is better than no credit card at all. Usually the required security deposit is the major turnoff with these cards, but if you start saving a small amount every month you’ll achieve your target at some point. A secured card reports to major financial bureaus and can improve your credit score after a year of timely payments. 

Avoid Subprime or Prepaid Credit Cards

With bad credit you may be tempted to apply for subprime or prepaid credit cards as they are usually advertised as an option for people with poor credit. However, you should avoid such offers since they don’t improve your credit score as they don’t report to the major financial bureaus. These credit cards charge high upfront fees which usually take up most of your credit limit leaving you with poor credit history still. Some examples of credit card issuers who offer these types of cards include First Premier and Credit One banks.

Improving Your Credit Score

The only lasting solution to bad credit is to improve your credit score and get your credit back in shape. A bit of advice about growing your credit score using your credit card is to think of your credit card as a tool to build your credit and not a tool for spending your credit. There are various ways in which you can improve your credit score significantly. For instance, you can limit your spending, ensure that you never miss a payment, pay off your whole balance and avoid credit cards with low credit limits.