Even With Bad Credit, You Can Get Credit Cards
Have you applied for a credit card and been rejected because of your bad credit? Beat the system by using credit cards for bad credit.
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 Secure Card- No annual fee
Avoid the Rejection Spiral When Applying for Credit Cards
Before you rush and sign up for credit cards for poor credit, there are a few things you need to know. If you’re not careful, it can cost you financially and on your credit report. Plus, having too many credit cards risks more debt, and your goal is to rebuild your credit and get out of debt.
When you get a rejection, don’t immediately apply for another credit card, because applying for and getting rejected by too many cards in a short period can damage your credit.
You want to avoid the dreaded rejection spiral by all means necessary, as this puts your credit score in the dumps for a long time.
The best thing to do is to find out exactly why the credit card issuer rejected you. There could be a number of reasons, including incorrect info on your credit file or bank error. Your credit score may even be OK, but some credit cards require an excellent score. The credit card issuer can tell you the reason for denial.
Before beginning the credit application cycle, check your credit score and report for free at Credit Karma or Credit Sesame. Checking your own score will not affect you. This gives you a better chance of finding the credit card that you will qualify for without submitting multiple applications.
More Information about Different Types of Credit Cards
- Best First Credit Cards of 2020
- Horizon Gold Review
- Rewards Credit Cards
- Unsecured Credit Cards
- Secured Credit Cards
- 7 Tips to Use Your Credit Card Safely
Information on Your Credit Report Matters
Your credit report plays a huge role in virtually every financial decision in your life. Credit card issuers use this report information to decide whether or not to issue you a card.
If you have a blemished credit score, then there’s a good chance the more premium credit cards will turn you down. But don’t let it get you down because this elite group is easier to get into than you may think. You will just have to manage your credit wisely with these tips:
- 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 account.
- Verify your personal information is accurate, like name, address, employer, etc.
- Make sure to keep all your current accounts in good standing going forward.
Use Credit Cards for Bad Credit to Build Your Credit
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 possible, 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.
After a period of time using one of these credit cards, you may be presented with an option to modify your credit card terms. You even may upgrade your card to a different one with better rates and rewards.
Be sure to contact your company after six months or so to see if you might qualify for better options.