Can You Get Credit Card For Bad Credit?

By Author: Adam Ibrahim
Total Articles: 59
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Getting a credit card for a bad credit history just seems like a masochistic form of exercise. But there’s a good reason why you should apply for a credit card even if your rating has taken a beating. It’s not so because you can splurge some more on things that you have no way of paying back. The main reason is to reclaim your name.

Rebuilding your credit history

With the simple act by the bank to accept your application for a credit card, it will help you re-establish and rebuild your credit rating. Just make sure you don’t default on payments and you pay on time. Debt management companies can help you in this regard. They can teach you how to best manage your account, your monthly budget and savings. Another good way is to apply for debit cards which would have no bearing on your credit history. One major benefit is it teaches you to be more circumspect and responsible with your money.

Debt management and consolidators can also help you access personal loans even with a shot credit history. That’s because they serve as guarantors or even loan grantees whenever you need access to emergency funds. ...
... Again, how you pay back will impact on your credit history and rating.

Bank Requirements

When you apply for a credit card on bad credit, the bank will run an initial check on your background and credit history. This process is known as the soft pull and it will in no way affect your credit history as the bank will not report the results to monitoring agencies.

The results of the initial check will be the determining factor whether or not the bank will give you a secured credit card or unsecured credit card.

Secured credit card

This type of credit card will require you to make a security deposit against your credit limit. The security deposit can be substantial for people whose budgets are already stretched thin. But you don’t have to pay outright; you can plan ahead and ask for the amount of a deposit. For example, if the deposit is $500 you can save at least $50 in 10 months before applying for the card. There’s no instant gratification for you because it’s a long process but you have to go though it nevertheless to get a credit card for bad credit.

Unsecured credit card

A credit card doesn’t require a security deposit. But you can only switch provided that you make the monthly payments on time. The interest rates are going to be higher as well as the penalties, but those are the consequences of a bad credit history.

Author’s Bio:

Author has many years of experience in content writing. He is the most celebrated and acclaimed author in financial sector. His many articles have been published online. Now he is writing for Debt Negotiators and providing information on guaranteed personal loans and credit card for bad credit online.