How to Get a Credit Card for Poor Credit Score?

How to get a credit card if you have a poor credit score?

A credit card is the most perfect tool for your needs. However, if you have poor credit or do not have any credit history at all, you may find it difficult to choose the best credit cards for yourself.


Poor credit is a nemesis

When you have poor credit, you may still get credit cards having high-interest rates and ‘sky-high’ limits which makes it extremely difficult for you to repay in full or part. You seem to fall into a vicious cycle with these bad credit cards as in the worst case, it even gets difficult to make the minimum payments, thanks to the ‘hard strings attached’. These bad credit cards will make you feel as if you were neck-deep in debts, at times. You are often left to wonder if you will ever regain the trust of the credit card companies or financial institutions, who pamper their customers with higher credit ratings.

How to get a credit card with bad credit then?

Don’t worry! Getting the best credit cards with bad credit may be difficult, but not impossible at all!
The reality is that, just about anyone and everyone is entitled to own a credit card, irrespective of his or her credit history. There are quite a few credit card options, designed specifically for people with poor credit.
We will discuss some of them here-

1. Prepaid Cards

Credit cards in this category are an excellent option if you have poor credit. Anyone can avail this because of the fact that it does not lend money to you. Rather, you put money upfront into your account and the same is deducted every time you purchase something. As there is no overdraft in this case, you do not need to incur any interest. You just need to provide some simple banking information and get a credit card for yourself.

2. Bad Credit Cards

Many financial institutions offer these credit cards for people with poor credit. Usually, these cards come with a high-interest rate, which may not seem to be ‘good enough’ for you.  But, these cards can help you in the sense that, you have no option but to be more particular while making repayments every month. Making timely payments will boost your credit score over a period of time and you will end up getting a much cheaper deal next time from the lenders.

3. Low Balance Cards

Many financial institutions offer credit cards for poor credit, along with a ‘low balance’ option. Such credit cards for poor credit do not allow you to spend much on a given month but ensure that you can improve your credit rating and can increase your limit eventually. Do have in mind that your lender assesses the risk of lending to you, every time you apply for a credit card. Once they are convinced about your credibility and reliability, they will offer cheaper interest rates to you.

4. Secured Credit Cards

These credit cards for Bad credit may charge from you a higher Annual Percentage Rate (APR) similar to the unsecured variety with one striking difference. These cards come with less stringent qualifying conditions because the available credit on the card is deemed to have ‘paid’ in full by the cardholder already.
Such credit cards for poor credit works very much similar to a debit card associated with a savings account except for the fact that balances left on your card are levied a monthly fee depending on the APR. A minimum finance charge may also be charged on these balances.

5. Pre-approved & Acceptance Guaranteed Credit Cards 

Wonder why the name of this credit card for poor credit is followed by an asterisk? This is because you need to meet a few qualifying conditions to be able to avail such credit cards.
The common conditions include income, time at residence, time of employment and the credit rating, of course. The nature and extent of these conditions vary from one card to another but most cards require a minimum annual income of $12,000 and continuous employment of at least 6 months. Continuous residency may be an issue at times but most financial institutions want a minimum stay of 6 months at a particular address.  For some financial institutions, the lower is the credit rating; the higher may be the APR charged upon you. They may also ask for a deposit or charge higher annual fees from borrowers with poor credit.

Important things to consider with these credit cards

Credit cards for poor credit are excellent tools to turn poor credit around in due course of time. These credit cards can do wonders for people with poor credit, simply because they can help such people to regain the confidence and habit of making steady and timely payments.

These credit cards can come with high-interest rates. Therefore, it is imperative that you study the details of your agreement/contract with the lender with rapt attention. Try to understand things like - how much interest will be charged from you per bill or per use, when your payments are due or what your spending limits are and so on. By doing your homework beforehand, you can use this information to your own advantage.

Do have in mind that the word ‘poor credit’ does not always deprive you of lucrative credit opportunities. There are many financial institutions that are willing to give a chance to potential borrowers like you if you give them the impression that you are willing to welcome positive changes in your financial handling or you are eager to build your credit rating. This way, you can give yourself that elusive fresh start that you so richly deserve.

Afinoz “is there to take care of your financial health and our dedicated experts will provide you with the best possible financial advice related to getting credit cards with poor credit.
For any query, feel free to call us at (9711996118).

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