How to Get a Credit Card with Bad Credit

How to Get a Credit Card with Bad Credit

Credit Card handy and comfy to use hence it has become the best friend for every one of us to purchase. But you cannot gain access to a credit card with bad credit. If your credit score is the main aspect that any credit card company will focus on whether to approve your credit card or not. Your credit score is a measure of your financial health. With bad credit score, it is difficult to get you credit card but it's not the end or impossible thing for you to get your card, but you have to follow some simple steps to get your card. Bad credit may be the result of your past, either the mistakes done by you or by some fraud who theft your card.

What is Bad Credit?

  • Credit Scores are calculated by the lender by some mathematical models that vary from lender to lender.
  • The Standard scale of the credit score measured from 300 to 900 range, based on which range you land your credit score will be decided whether it is excellent credit or good or bad credit.
  • A score between 750 to 900 is an exceptional credit score
  •  While the score ranging from 300 to 549 is a poor credit score.
  • A bad credit score can be caused by many reasons like missed payments or late payments this will damage your score.
  • Bankruptcy is another cause of bad credit.
  • Loss or your identity or by some fraud you may lose some payments and you may be aware when the bureau notifies you.
  • Sometimes the credit bureau may also make some mistakes that will also affect your scores.

How to Get a Credit Card with Bad Credit

  • If you have bad credit, then rebuild your credit and get the card.
  • Before going for that decide yourself what type of card you are looking for, either you want reward points on a purchase you make, or you want a card with a low annual percentage rate.
  • Once you have decided next check what type of cards you qualify for, it's better not to waste time on a card that you don't qualify for. So be wise, go for the selection of the card for which you qualify.

Consider a Secured Credit Card

Despite bad credit secured credit cards will help you gain credit. for secured credit, you must deposit the cash, which typically doubles your credit line. Secured cards are mainly designed for the people with poor or bad credit and who are trying to rebuild their credit secured credit cards are of great help.

Pros of Secured Card

  • Easier to get approval with bad credit.
  • Some secured card offers reward points.

Cons of Secured Cards

  • A cash deposit is necessary to get access to Secured Cards.
  • Secured cards sometimes charge more APRs and other fees than unsecured cards.

Try Retail Store Card

Retail cards are another option for you when you have bad credit, you can purchase things at the store, and this will offer you convenience in purchase also helps you rebuild your credit.

Pros of Retail Store Card

  • No need for a Cash deposit
  • Some may offer reward points for using them
  • Easy to get approved
  • Help you build credit.

Cons of Retail Store Card

  • They charge high APR ccharges
  • They offer limited access to purchase

Try to Become an Authorized User

  • Ask your friend or family member to add as an authorized user for their card.
  • If you become an authorized user, you can make purchases, but you need to worry about applying for it using your name or credit history.
  • If the primary cardholder pays their bills on time and keeps their credit utilization low, then that will positively reflect on your credit history.

Pros to Become an Authorized User

  • Without any application procedure, you can do your purchase.
  • You will not be responsible for any debt associated with the card.
  • You can make purchases and you can gain rewards.

Cons to Become an Authorized User

  • It may not build the credit as much as you could earn on your own name.
  • If the primary cardholder pays any late payments, then that will negatively reflect on your credit history.

Follow healthy habits to build your credit

  • Maintain a mindset to increase credit be whatever the card type you use.
  • Pay your bills on time every month
  • Keep your credit utilization low
  • Apply for a new credit card only when you needed.
  • Do not close your older credit accounts.

Credit Cards help you build your credit also make convenience during purchase. If you have bad credit, rebuild your credit and get your own credit card, make sure you pay all your bills on time and get your score and maintain the score back on track. Ans use the credit card responsibly so you could gain on.