How to Obtain High Balance Credit Cards Even With Bad Credit

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A bad credit rating can make all areas of personal finance that much more trying. Securing a loan or buying a house can be almost impossible if your bank views you as too high a risk, and it can be just as difficult to find a financial institution willing to issue you a credit card. Fortunately, there are a few ways you can increase your chances to get a credit card with a high balance limit, even if you have poor credit.

  • Get a secured credit card. Secured credit cards are those that require a form of collateral. In this case, the collateral is the amount of cash you deposit into the card account. Whatever amount you deposit into the account will become the established limit. For example, if you deposit $2,000 in your account, your secured card's limit will be $2,000.

  • Opt for a credit card with a higher interest rate. This way, a bank might be more willing to offer you a higher limit, despite your low credit rating. If you end up paying the credit card on time and consistently, then bank will end up profiting off of the high interest; on the other hand, if you eventually default on the card, the bank is more likely to break even because the interest rate covered any losses.

  • Increase your income. Credit card companies base their limits not just on your credit rating, but also on your income. In other words, you can get a higher limit if you make $45,000 a year, rather than $40,000.

Tips & Warnings

  • If you are self-employed, you might be able to show the bank a higher annual income by including tax credits in your calculations.

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