How to get a credit card with bad credit history
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » How to get a credit card with bad credit history

How to get a credit card with bad credit history


Updated: December 26, 2012

By
Add to Favorites:
Credit cards are the most heavily used replacement for cash at present. With a multitude of companies offering credit card accounts, and the number of users increasing on a daily basis, it is one of the mainstays of the finance industry. While credit card companies are constantly on the lookout for new users, and set up attractive offers and deals to lure new customers, it can be very difficult to get a credit card if you have the misfortune of having a bad credit history. Credit card companies always make a careful appraisal of an applicant??s financial past and present. Credit records are put under careful scrutiny to establish the financial stability and reliability of a prospective customer. If you possess a tarnish free credit history, you will face no problems. But for people who have made financial mistakes and spoiled their credit record in the past, it is very difficult to receive approval for a credit card. It is always recommended that you clean up your act before applying for a credit card, but there are other solutions too. There are companies which specifically offer credit cards to people with a bad credit history, and though it is a risky option to opt for, you might end up significantly improving your credit score if you play your cards right. Explain Yourself While most credit card companies will reject an applicant with bad credit history, there are some companies, however, which consider applications from customers whose credit record contains minor problems. If you are honest and explain the circumstances that led to a drop in your credit score, you stand a better chance of being selected. These companies allow you to include a small statement in which you can clearly explain what caused a drop in your credit rating. The assessing personnel will read the statement and take it into consideration while making their decision. Get A Secured Card Another option is to go for a secured credit card. Many companies offer this as an alternative solution for people who have a bad credit history. For a secured credit card, you have to deposit a pre-decided amount into a standard savings account. Following that, you are given a credit card that has a credit limit equal to or a little higher than the amount of money that you deposited. You are supposed to maintain the savings account balance so that it doesn`t dip below a prearranged minimum amount. If you pay your bills on time, this is a good step forward to gradually repairing your credit history. Go Subprime The last and most risky resort is to opt for a subprime credit card. This is specifically targeted for individuals with a bad credit history. These credit cards come with upfront fees and very high interest rates. These types of credit cards are not advisable, unless you really need it. Make sure you can repay the monthly paybacks on time and you would be safe.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading