0

Tips to Guarantee Approval for a Bad Credit Credit Card

Tips to Guarantee Approval for a Bad Credit Credit CardAlthough bad credit credit cards are designed to help people with low credit scores improve their ratings, approvals are not guaranteed. You don’t need perfect credit, but there are still requirements for these types of credit cards. If you do not meet the minimum requirements, the credit card company will not approve your application.

What are the consequences of a low credit score? For starters, a low credit score can affect whether you’re able to purchase a car. Your score also determines whether you can qualify for a house and obtain store credit. There are several causes of bad credit, such as poor money management, overspending and loss of employment. Bad credit restricts your options, but fortunately, you can undo the damage.

If you’re looking for a way to raise your credit score, and you feel that a credit card can help, here are three tips to guarantee approval for a bad credit credit card.

Get a job

You don’t need a perfect financial record to qualify for a bad credit credit bad, but you will need a job. Rules regarding employment vary. For example, one bank may require six months of steady employment, whereas another bank only requires three months of steady employment. Know the bank’s requirements before applying for a bad credit credit card. This can increase your chance of an approval.

The application will ask for your employer’s name, as well as your monthly or annual salary. Do not exaggerate your finances. Some banks will verify this information before approving your application. Steady employment says that you’re less likely to default.

Choose the right type of credit card

Even if you’re turning over a new leaf and ready to fix your credit, many banks will deny your application if you have poor credit. Some banks only offer accounts to people with an established credit history and a high score. But other options are available to you.

Given your present credit status, you may qualify for a secured credit card. These credit cards are perfect for people with bad credit and no credit history. Approvals are not based on your credit score, and many banks approve applicants with a bankruptcy, repossession or foreclosure in their recent past. Talk to your personal bank about a secured credit card, or apply with an online bank.

Have cash ready

Bad credit comes with a price. And while you can qualify for a credit card with a poor credit history, you may need a security deposit. People with excellent credit can apply for a credit card and get approved without spending money. This isn’t always the case for those with a low credit score. Because of your past credit problems or lack of credit, creditors may not freely extend a line of credit. This is why bad credit credit cards typically require security deposits. Unfortunately, the fees don’t stop here. Other common fees with a bad credit credit card include an annual fee, an initial account setup fee, plus maintenance fees. Additionally, some creditors charge a fee for accepting payments over the phone.

Filed in: Credit Cards for Bad Credit

Share This Post

Recent Posts

Leave a Reply

Submit Comment

Copyright © 2020 Proffiliates | All Rights Reserved