How to Get a Credit Card With Bad Credit & Low Income
Bad credit doesn't have to ruin your chances of getting a credit card. In fact, getting and using a credit card properly can help to restore your credit rating. There are plenty of available credit cards for people with credit troubles. Some of them, however, charge fees that wouldn't normally be applied to traditional credit cards. Be sure to read the fine print before applying for any credit card, and look for a card that has reasonable fees associated with it.
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Instructions
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Getting a Credit Card with Bad Credit and Low Income
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Approach a banking institution about a secured-card option. Secured credit cards work like regular credit cards, except that you must put down a security deposit that is equal to your total credit line. Some cards allow you to put down as little as $100. If you put down $100, you will have a $100 credit line. The security deposit assures the bank that you will repay your debt. When you use the card, be sure to pay off the balance each month. This will rebuild your credit over time. If you find that your local banks do not offer secured credit cards, you can try to find one that suits your needs on the Internet.
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Research offers for unsecured credit cards that are tailored to people who have bad credit. If you have bad credit, the fees and interest rates on these cards will be much higher than on traditional credit cards, but paying them off each month can help you repair your credit. Some of these cards have fees that are very high, leaving you with a debt owed to the creditor before you even use your card. It is a good idea to pay off these fees before using the card. Shop around for cards that charges a minimum fee for signing up.
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Get a prepaid debit card. Prepaid debit cards work like credit cards, except that they draw on a balance that you put into the account. Debit cards work much like bank cards. Prepaid cards might be a good option for those with very poor credit who are not eligible for any other options. Some prepaid debit cards even report to credit bureaus, so they can also help build credit over time so that you will eventually be eligible for more options. A debit card is also a good option for those with very low income, because spending is controlled by how much money is put on the card in the first place.
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Tips & Warnings
Be sure to understand a prepaid card's associated fees before signing up. if possible, find a card that has low or no fees associated with it.
Beware of credit-repair scams, which can often show up in search engine results when you are looking for credit cards for those with bad credit. The only way to rebuild bad credit is to slowly establish good credit. Companies claiming they can "fix your credit in just minutes" or "erase your bad debt" are scams.
