Having a bad credit record should not prevent you from getting a credit card.
You might face some difficulties in getting it though, as compared to someone with a good credit record. Listed below are the typical steps to getting a credit card despite your bad credit record.
Begin by applying for a credit card at some of the smaller stores. These stores may be more open to granting you a credit card as compared to larger dept store chains.
Your bank, your credit union or any other savings institution may be another good place to begin your attempt to get a credit card. If they are already doing business with you, they might be open to issuing you a credit card.
If these steps do not work, you will have to fall back on requesting for a secured credit card. A secured credit card is issued on the basis of a bank account that you open and fund. The credit limit sanctioned may be a percentage of the total amount that you fund the account with. This can typically range from 50% of the balance in your account to 100% of the amount. The funds in your savings account are a type of collateral for the credit card issuing company, and give them an assurance of repayment.
Another ploy you can use is to get a friend or a family member to co-sign for a credit card. This means that they take responsibility of your debt and if you are for some reason unable to repay your credit card debts., the credit card company can claim this from the cosignatory. This will affect their credit rating, so taking on a cosigned card is a responsibility.
Some precautions you need to take when in situations of bad credit
The best way to repair bad credit is to prove that you are credit worthy. One way of re establishing your credit worthiness is by consistently paying your other credit card dues on time, at least the minimum amount due each month.
Once you get a credit card, other card companies may send you offers in the mail. At a time when you have a shaky financial position, refrain from keeping more than two or three cards. The more cards you have the more difficult it is to manage.
Limit your spending and keep it well within your income. |
