The fundamentals of bad credit history you need to know


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » The fundamentals of bad credit history you need to know

The fundamentals of bad credit history you need to know

Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.

If acquiring a credit card has been playing up on your mind for long, you would have probably already heard of credit score. Getting a credit card is by far dependent on your credit rating. A good credit score can help you grab some of the best deals available while it’s just the opposite with a bad credit history. Having poor credit history will cause a number of creditors including banks to rethink their decision of giving you a credit card.

What happens when you’re score is high is that the financial institution assumes you to be very low risk. Having bad scores will directly see you as a higher risk in the case of borrowing money on the credit card. You will have to supply a warranty while the interest rates on the various deals proffered will also be high. What’s more, you could be given a very low credit limit and may not be able to enjoy all the advantages generally available to a person with a good credit record.

Applying for a secured credit card is one of the best options for those having bad credit card history. You must be upfront about notifying the issuer for any custody on the credit amount. Generally, the credit limit delivered to a user is by ascertaining the balance of the users’ funds in the savings and current account. A few issuers may fix the amount limit to something less than the balance in the individual’s account. Depending on the creditor, the terms and conditions for this factor may vary.

A joint account is also a good way people can deal with a bad credit history. Though this should typically be seen as the last option and you must preferably share the account with a family member having a better credit. With this option in hand, you should be able to avail of credit card rates below normal interest, provided you pay the money on a monthly basis. In many cases, lenders may have you shell out a considerably small amount as a fee while others may charge on an annual basis for a secured card.

If you have a history of bad credit, you must be a tad bit extra careful before jumping into any credit card deal. While reading all the information carefully, you must scan through the market to gain the best offer.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!