Updated: a day ago
There is one secret for how to get a credit card with bad credit, but choosing the right kind of card and hope that they have pity on you and approved your application. There are two types of credit cards that you can get with a poor credit score: secured credit cards and unsecured credit cards for people with bad credit. Both types will report account history to of the four major credit bureaus each month, which means either can help you rebuild your credit if used responsibly. But they’re far from equal in terms of accessibility and cost.
Secured cards are the easiest credit cards for anyone to get, offering nearly guaranteed approval even to people with very bad credit. Some don’t even check applicants’ credit history, which means there’s no hard inquiry that will further hurt your Credit score. Secured cards also charge much lower interest rates and fees than unsecured cards for bad credit.
All of that, a refundable security deposit is required to master the high approval odds to the low fees, to be considered a secured credit card. The spending limit will determine by the amount of this deposit, which you typically have to place when you apply. This prevents you from spending more than the card’s issuer knows for sure you can afford to repay. And without the risk of being left with an unpaid balance, the issuer can afford to approve more people as well as offer more attractive terms.
Now that you know the lay of the land, the path to plastic despite poor credit should be clear. But for your convenience, we’ll lay out step-by-step instructions below.
How to get a credit card with bad credit:
Compare secured credit card offers. Shopping around will help you identify the card with the lowest fees, lowest deposit requirement, and highest approval odds.
Fill out an application. Applying online is best because you get a decision soonest.
Place your security deposit. You’ll have to submit your deposit either when you apply or after approval but before opening an account. You can usually fund the deposit with a transfer from a bank account or prepaid debit card. The funds will be returned if you don’t get approved or when you close your account (minus any unpaid balance).
Get approved. It’s possible to get rejected for a secured credit card, but not likely.
Getting a credit card with bad credit can be tricky. But it’s crucial to open an account as soon as possible in order to begin repairing your credit reputation. A secured card allows you to do that. And it has the added benefit of helping you avoid being rejected repeatedly, which would only make matters worse.
No matter which secured card you choose, paying your bill on time every month will add positive information to your credit reports, which will help cover up past mistakes. But sometimes that’s not enough. Some people with bad credit need a credit card with no security deposit to cover emergency expenses. In that case, an unsecured credit card for bad credit is your only option.
You won’t have much of a selection when shopping for an unsecured card with bad credit, unfortunately. You won’t get too much extra spending power, either, because high fees will initially consume much of your credit line. But it’s definitely possible to get approved for such a card. Just compare your options and double-check the eligibility requirements in their terms and conditions to make sure nothing in your background rules you out.
Public Records Listing
This option will let you get approved for unlimited credit cards bad credit even with bad or no credit. I once saw a young man got approved for over 200K in unsecured with a credit score of 520. And without a single hard inquiry on his credit report.
One of the ways the credit bureaus make money is to sell your information with your consent. You may click on something consenting them to send you offers from there partners, This means that you will be prescreened for credit offers and any other product that might have been an interest to you. This is where opt-out prescreen come in handy, you can sign up with them by.
entering your personal information including your full social security number. By doing so bad credit card and loan companies will send you out prescreened offers. Should you accept these offers you only need to enter only the last four of your social security number for a soft inquiry that will not affect your credit score on-like a hard inquiry. This method lets you have unlimited approval odds with bad credit a literal immunity from hard inquiries.
So, to recap, a secured credit card is not your best bet if getting approved and beginning to rebuild your credit as soon as two to three weeks should be your top priority. But getting an unsecured credit card for bad credit doesn’t mean you should go out and continue the bad hobbies spending funds that you can not afford to repay.