If you have bad credit, you already know how hard it can be to get approved for a credit card. A person’s financial future often depends on their ability to obtain credit cards, and if you don’t have good credit, it could be difficult for you to be approved for a card with favorable rates and advantages.
With each disapproval, you are decreasing your credit score and making your credit worse!
That is why you should look for sub-prime credit cards that cater to people with less-than-perfect credit.
A subprime credit card is a type of credit card designed for people who have poor credit.
Banks provide subprime credit cards to customers that the majority of lenders deny.
These cards tend to have higher interest rates and lower credit limits than “normal” credit cards. But they are a great way to start building or rebuilding credit.
You can get a secured or unsecured card from them. Both are effective ways to raise your credit score.
Keep the following tips in mind when you are choosing your next card. With good credit management, you will be able to start applying for good credit cards within a year or two, depending on how bad your credit currently is.
Bad Credit Unsecured Credit Cards
There are credit cards for people with bad credit and no security deposit. All you need to do is know where to look.
But the first step is knowing your credit score. Your credit score is essential if you plan on buying a car, a house, or applying for a job.
Contact all three credit bureaus before submitting an application for any form of financing.
Look for errors and if you find any, dispute them before applying for credit.
Here are some tips to help you dispute any errors on your credit report:
- Request a credit report copy from each of the three credit reporting agencies (Equifax, Experian, and TransUnion).
- Examine the credit reports for any errors.
- Send a letter to each credit reporting agency explaining why you believe your credit report contains an error.
- Make a request to have the information removed or corrected.
- Keep copies of all correspondence related to the dispute in case you need to provide evidence.
Once you have done all you can to improve your credit score, you can start researching poor credit cards.
Secured Credit Cards
A secured credit card is one that is linked to a savings account that serves as your credit balance.
Since you use a savings account as security, some secured cards can have high credit limits. That is one of the reasons why so many consumers find secured credit cards essential to building their credit.
How To Find A Bad Credit Card
Look for credit cards designed specifically for people with poor or no credit.
Also, look at charge cards like what you get from department stores. If you get approved for one of these cards, make good use of it.
It is only the first step. Make regular purchases on this card and pay it off at the end of every month.
It will assist you in establishing credit and preparing you for a much higher credit limit or a card with a lower interest rate.
Here are some tips on how to find a bad credit card:
- Start by looking online. Companies that provide credit cards provide customers with poor credit with special offers and discounts.
- Check the interest rates. If you have bad credit, a high-interest card will not be beneficial. Look for credit cards that have low-interest rates and no annual fees.
- Rewards program. Many credit cards have excellent rewards programs that, when used correctly, can help you improve your score.
Avoid Credit Card Traps
Avoid cards that do not report to a credit bureau. Credit building programs should be avoided because they will not improve your credit score.
A prepaid card is just like having your checking account, only in the form of a credit card. These are great for making transactions online, over the phone, or mainly to avoid carrying around a large amount of cash.
If a prepaid card doesn’t offer a credit-building program, avoid using it. Look for a card that will report to at least 1 of the credit bureaus. A credit card that doesn’t report your activity to a credit bureau will not help you build or rebuild your credit.
Don’t apply for credit cards that cater to good credit Many reward credit cards have minimum credit score requirements of 680 or higher.
Look for a credit card with low-interest rates and no annual fees.
Every time a financing company pulls your credit, it lowers your score. There is no point in applying for a credit card that requires a high credit score! All you are doing is lowering your credit score.
Be selective with your credit cards and use them sparingly to reestablish your credit rating.
Keywords to look for before applying
Look for credit cards that say things like:
- Bad credit OK
- Subprime credit cards
- Less than perfect credit OK
- Credit builder program
- Reports to credit bureaus
Stick to the cards designed for people with bad credit, and you will be approved more quickly and be able to start rebuilding your credit sooner.
Follow these Steps to get a Credit Card.
With determination and careful planning, you can finally have your credit card. Just follow the steps we have laid out for you:
- Know your credit score
- Apply for credit cards you can get
- Pay off cards every month
- Don’t miss a payment! Late payments will lower your score
- Wait Six months to 1 year before trying to apply for better credit cards with a lower interest rate.
If you have bad credit, you should be aware of the different types of credit cards available to you. There are numerous options available, and choosing the right one can help you improve your credit score while saving you money in the long run. Credit cards are a great way to build your credit history and score, but be wary of the consequences if you don’t pay off your balances on time.
I thankfully haven’t had to deal with bad credit in my life, but I’ve been very close to it and it’s good that there’s a chance I could grab a credit card whenever I do have bad credit. It should make life a tad bit easier, but I’d sill prefer to keep my credit at a level I can be happy with. Thanks for sharing!
Thanks for taking time to read our article. It is great to be prepared on whatever might possibly happen in the future as well. I’m glad you’ve able to keep up your credit at the level.
Having to deal with debt is hard, but having the chance to get a credit card with bad credit really makes things a lot easier. I’ve been able to pay bills and actually save more money because of getting a card like this. I just wish I knew of these methods sooner.
Thanks Mack! Now you already know these methods and just make sure to use your credit card wisely!
Have a good day!
Hi Stacey, A secured credit card is one of the best ways to start rebuilding credit IMHO. Make sure you make your payments on time and don’t forget to add to your credit line with additional deposits so it looks like the bank gave you a credit line increase 🙂
Thanks for visiting and I hope you feel free to share this article with your friends!
I got a secured credit card recently and I’m so glad I did. I wasn’t able to get a general credit card, so I went this route. It worked pretty well and I will be able to use the card very soon. I’m very excited to be able to have some way of paying for things when I really need to.