Okay, you have bad credit. It may seem like a horrific thing to be labeled as an individual with bad credit, but having bad credit is not the end of your financial world. Yes, it could prevent you from doing a variety of things or it may make it difficult and more expensive to do other things. You may find it difficult to find a home that you love and can afford. You may discover that buying a car will be more expensive for you in comparison to your friends and other family members. You may also find that getting a loan or applying for a credit is a bit more challenging and you run the risk for be denied. Well, here is a surprising word of encouragement for you: it is possible to get a credit card with bad credit, and below are the ways you can make it happen.
Getting Your Credit Card with Bad Credit
If you have bad credit, it is wise to remember that credit cards are typically geared toward individuals whose credit reflects their ability to keep up with credit card payments and not put their account at risk for being delinquent or ending up in collections. So, you probably have already figured out the there are a specific group of cards you can obtain with bad credit. For example, Capital One bank offers a platinum card so that individuals can obtain a credit card with bad credit. You have to complete the application in order to be approved. It comes with a 22.9% APR and a yearly fee of $39. It is even possible to get the annual fee waived. Orchard Bank was another institution that allowed individuals to get a credit card with bad credit, but Capital One has taken over the bank and the Orchard Bank credit card was discontinued.
Another industry that is popularly known for giving a person a credit card with bad credit is the retail industry. If you have bad credit and are looking to get a credit card, you may be lucky to apply for a credit card at your retail store, like Target, Wal-Mart, or Sears, just to name a few. Those cards are a good choice if you want a credit card with bad credit because it places a limit on where the card can be used. The cards issued by retailers are typically not carried by a major credit card company like Visa or MasterCard. It is usually just a credit card that can be used for that store specifically. Those credit cards come with low limits and high interest rates. Your best option when you use a credit card with bad credit is to make small purchases to be able to pay the monthly balance in a timely manner.
Tip for Owning a Credit Card with Bad Credit
If you have a credit card with bad credit or have bad credit and still want to own a credit card, there are some things you should keep in mind.
· You May Be Required To Pay A Deposit.
When you attempt to get a secured credit card with bad credit, you are primarily a candidate for having to pay a deposit. That is the top reason why consumers decide against owning a secured credit card because of the required deposit. However, if you have bad credit and want a credit card, you have to deal with having to pay the deposit. Deposits can range between $49 and $100. Now, after you have made all of your payments on the due date during your first year of having the secured credit card, you can change it to an unsecured card.
· Stay Away From Credit Cards That Are Geared Toward People With Good Credit.
Obviously, these types of credit cards are not for you if you have bad credit. In fact, upon applying for them, you may find that you are immediately denied. If approved, you run the chance of having a card with extremely high interest rates and fees. You can tell which cards are for people with good credit. The more incentives that are involved with the card, the more they are advertised toward good credit holders.
· Beware Of Cards With High Fees.
Keep in mind that all fees associated with a credit card is a part of your credit limit. A credit card with bad credit is typically given a $200 spending limit. If you come across a credit card with bad credit but the fees are too high for you to handle, maybe you can consider a prepaid card. It works more like a debit card than a credit card, but it eliminates your use of cash and you can only spend what you have available.
Credit cards can be a lifesaver, but very hard to come across if you are a victim of bad credit. However, there are still options out there to obtain a credit card with bad credit. It may take a bit of research to find the one with the best rates for you, but you do not have to live your life without a credit card if you have bad credit.