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Step 1
Improve your credit first, then apply for a credit card. Depending on how bad your credit is, and how many debts you owe, this can be done in a matter of a few weeks or several months. Any increase in your credit rating will better your chances of qualifying for a new credit account.
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Step 2
Get a credit card with a high interest rate. There are a lot of banks that cater to people who are credit risks. If you don't want to or can't wait for your credit to improve, apply for one of these high interest cards. Be wise, though, and only use the card to reserve hotel rooms or rental cars, but do not use the high-rate card to pay for things. Having any balance on a high-rate card will just get you in further credit problems because it will take longer to pay off a credit card with high interest rates.
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Step 3
Get a secured credit card. These are credit cards with a set credit limits on them. The credit limit is determined by how much money you deposit into a linked bank account. For example, if you want a $1,000 credit limit, you'd deposit $1,000 into the bank account that the credit card company opens for you. After that, the $1,000 (or whatever your set limit is) in the bank acts as collateral. If you charge $50 on the card, the money is not withdrawn from the bank account; you are still responsible for sending in a payment each month to cover the expenses you charged on the credit card.
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Step 4
Use a debit card. Many banks will issue debit cards that have the Visa or Mastercard logo on them. These debit cards can be used as debit cards, and can also be run as credit cards at most retailers. They are not considered credit cards, however. Unlike a typical credit card, when you use a debit card, you must have the money in the bank when you make a purchase. The benefit of using one of these cards is that they are accepted anywhere Visa and MasterCard are accepted. So if you dine out, most restaurants do not accept ATM cards, but they will accept Visa or MasterCard debit cards. There's a link in the "Resources" section below, where you can apply for and receive a Visa debit card.
Comments
IcyCucky said
on 1/14/2009 Very good suggestions!
jericvela said
on 1/12/2009 Great tips. Thank you.
klnygaard said
on 1/12/2009 very good info- thanks
Melanierose said
on 1/12/2009 I hate to say this but getting a credit card right about now is not the best idea because of the economy. However, if this is what you chose to do than so be it. This article is very well written, thank you for sharing.
00Analana said
on 1/12/2009 Great tips, thanks!