How to Get Credit Cards With Poor Credit

If you have poor credit, you may need a secured credit card.

Getting a credit card is one way to demonstrate creditworthiness and fix a poor credit score. You need credit to build credit. But if you can't qualify for an unsecured major credit card due to your past issues, improving a low score can prove challenging. Several options are available to help people with poor credit obtain a credit card. The key is knowing where to look.

Difficulty:

Moderate

Instructions

1. Talk to different banks and ask about requirements for a secured credit card. Secured credit cards require a security deposit for approval, and are easier to acquire with not-so-perfect credit. Monthly and annual fees are typical with secured credit cards. Shop around first and compare fees before applying with a bank.

2. Save up money for your initial deposit. The money you deposit with the bank to get a secured credit card functions as collateral. Minimum deposits are typically between $300 and $500. The amount you deposit with the bank will match your credit limit on the card.

3. Submit your application and open an account with the bank. Provide the requested personal information and forward a check for your deposit with the application. The bank will hold this deposit in a secured account, and if you need to increase your credit limit, you can add to the deposit.

4. Manage the account wisely. Paying your credit card bills each month and keeping your debt balance low improves your credit score. Once you've proved that you can manage a credit card, the bank may refund your security deposit and offer you an unsecured credit card account.

References

• Bankrate; How Do I Get Secured Credit Cards; Jessica Seubert; December 2008
• Bankrate; 10 Questions Before Getting Secured Credit Cards; Pat Curry; August 1999