It’s Not the End of the World: How You Can Get a Credit Card Even If Your Credit is Bad

It’s Not the End of the World: How You Can Get a Credit Card Even If Your Credit is Bad

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When you have bad credit, you don’t have a lot of options when it comes to getting a credit card. According to the Consumer Credit Research Institute, nearly 30 percent of Americans don’t have credit cards because they were unable to get approved. This is because very few credit card issuers are willing to take the risk of extending credit that they might not get back. The lower your credit score, the more challenging it will be for you to get approved for a credit card. Fortunately, your situation isn’t completely hopeless. While it might be hard, you can get a credit card even if you have bad credit.

Talk to Your Bank

In some instances, your bank might consider giving you a credit card if you already have a bank account with them and a record of few or zero overdrafts. It could pay off if you go in and talk to your bank’s loan officer or credit manage. This strategy works exceptionally well if you belong to a smaller community bank or credit union. To give you the highest chances of obtaining a credit card with this method, make sure that you present yourself professionally and provide them with a good reason for your temporary financial hardship.

Get a Secured Card

A secured card, if you don’t know, requires you to put down a cash deposit as collateral, according to the site Bankrate. In return, you receive a small spending limit to help you build your credit. With a secured credit card, you can acquire a credit card without any check of your credit history, because a secured card isn’t the same thing as a credit card. The money you put down as a deposit is placed in an account, and you can use it to purchase what you need. These cards usually come with an annual fee, so make sure you shop around to get the best deal.

Start with a Retail Store Card

There are a lot of retailers that are willing to issue store credit cards to people with bad credit. The credit line for these types of cards is typically small, at least at first. By getting a retail store credit card to start, you can begin to rebuild your credit and eventually get your credit score high enough for you to apply for a bank-issued card.

Consider a High-Interest Rate Card

This is an option that you should only do if you can pay off the balance every month. You can search for a card with the best rates for someone with bad credit with the help of CardGuru, where you can compare deals to determine the best card for your current situation. Many card issuers will take a chance on someone with bad credit but will charge an exorbitant interest rate, so make sure you can pay the balance in full and on time to keep from finding yourself in an even worse situation.

Even if you have bad credit, there are ways for you to obtain a credit card. However, make sure that you pay your bill on time to keep from getting further into financial trouble.