Tips - Applying For Credit Cards Despite Bad Credit

Is it possible to apply and get a credit card with bad credit? A person with bad credit cannot generally receive a credit card. This general rule means that for many applicants with bad credit, obtaining access to a credit card is limited. This does not mean that getting a credit card with bad credit is impossible or even out of the question. Here are some useful tips that may help you obtain a credit card with bad credit.

Applying for a Credit Card

It should be noted that a person with bad credit is free to apply for a credit card at anytime.  The risk to the applicant however is that a decline will result to a negative report on the applicant’s credit report. Enough negative reports will result in the lowering of a person’s credit rating, making it more difficult to qualify for a credit card.

Apply for a Bad Credit Card

The first tip regarding bad credit and credit cards is to apply for a bad credit, credit card.  These cards are typically secured credit cards that require the applicant to put up money in a secured account that is equal to the amount of credit being extended. These cards will help a person with bad credit build their credit back up by allowing increases in their credit balance to take place over time. These increases are permitted only after the cardholder demonstrates a history of consistent on-time payments.

There are credit card companies out there that specifically deal with bad credit consumers. These companies design their card to meet the needs of a person with bad credit and provide them with a second chance to build their credit profile. These companies can be found online easily and the process for obtaining their cards usually takes less than 24 hours.

Unsecured Credit Cards

A person with bad credit has limited options for unsecured credit cards. An unsecured card is one where the applicant is not required to put up security in the form of an account or collateral in order to receive credit. Those companies that offer unsecured credit cards for bad credit tend to require that the applicant not have any open bankruptcies and in some instanced may require a cosigner.  These cards are more difficult to find and apply for but may be worthwhile for a person with bad credit who desires a credit card.

Applying for a Debit Card

If a person absolutely does not qualify for a credit card because of their bad credit, they should consider applying for a debit card.  Providers such as PayPal offer debit cards that are based on the balance available in a secured account.  Debit cards differ from credit cards in that a debit cardholder can only spend the amount that is available in their account.  This prevents the cardholder from incurring any overdraft fees or other penalties that may be associated with a credit card.

Addressing Bad Credit

The last tip concerning applying for a credit card with bad credit is for a person to address their credit situation. If a person applying for a credit card has bad credit, they should request a credit report from 1 of the 3 major credit reporting agencies. The information provided on the report should accurately portray the individual’s credit situation. Any information on the report that is inaccurate should be removed immediately in order to improve a person’s credit score. Old and outstanding items should be addressed and payment arrangements made in order to reduce their impact on a person’s overall credit rating

 

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