You Can Still Get A Credit Card With Bad Credit
Have you applied for a credit card and been rejected because of your bad credit score? Don’t worry. There are credit card options available for those with bad credit. In fact, some credit cards for people with bad credit can help build your credit score to help you get better lending options later.
Here is a list of the top-rated credit cards for poor credit:
- Capital One Secured MasterCard
- First Progress Platinum Elite MasterCard
- Surge MasterCard Credit Card
- First Premier Bank Credit Card
- Milestone Gold MasterCard
- Discover It Secured Card- No annual fee
How To Apply For A Credit Card With Bad Credit
Most credit cards allow you to apply for credit without any guarantee other than your contract that you will pay it back. There is generally no collateral associated with the card that the lender can use to get their money back. If you don’t have a good credit score when applying, there is a high chance that you will be rejected for these kinds of cards.
Credit cards for bad credit are set up differently to help those with bad credit access some form of lending. Issuers have a less strict application process, which allows more people to get acceptance.
Credit cards for low credit are usually secured by a cash deposit upfront as collateral, or they will offer a small initial credit balance. They offer lower fees and give the best chance of approval.
There are unsecured credit cards available for people with bad credit; however, their fees will be much higher because they are more of a risk for the issuer.
The goal of getting a credit card for bad credit would be to keep your debt low, pay it off on time, and slowly rebuild your credit score to be able to get a better credit card as your score improves.
It’s never a good idea to have multiple credit cards as it increases the temptation to get into more debt when they should be to get out of debt.
If you apply for a credit card and get rejected, don’t immediately apply for another card. Multiple rejections in a short period can damage your credit score further.
The best thing to do is to find out exactly why the credit card issuer rejected you. There could be several reasons, including incorrect information on your credit file or a bank error. The credit card issuer can tell you the reason for denial.
More Information about Different Types of Credit Cards
Get Your Credit Report To Apply For A Credit Card
Before you rush in and apply for a credit card, it’s a good idea to check your credit score to determine what kind of card would best suit you. Checking your credit score is free and easy. You can check your score through Credit Karma or Credit Sesame, or most banks offer the service through their online portals. Applying for multiple cards may shine poorly on your credit score.
Check what’s in your report and dispute any accounts you don’t recognize.
Find any collection accounts and reach out to set up payments or settle the bill.
Verify your personal information is accurate, like name, address, employer, etc.
Make sure to keep all your current accounts in good standing going forward.
4 Tips To Improve Your Credit score
Use Credit Cards to Build Your Credit Score
After receiving credit cards for bad credit, ensure you pay by the due day. Even with bad credit cards, paying on time improves your credit score. This lets lenders know you can be trusted, thus increasing your chances of qualifying for better credit cards in the future.
Use this credit card for everything, from groceries to utility bills. Pay off as much as possible after the bill is posted. The more, the better. When feasible, pay the card off in full.
It is a myth that leaving a balance on your card is beneficial to credit. By paying off your card in full, you avoid interest and credit utilization. The more you use the card and make monthly payments, the more positive credit history you build.
Be sure to contact your company after six to eight months to see if you qualify for better credit options.