How to Get Approved For a Credit Card With Poor Credit
It is usually difficult to get an approval for a credit card if you have poor credit. Your credit score is the SAT score of financing, according to "Entrepreneur" magazine. But, it's not impossible to obtain a credit card, even with poor credit, if you know how to do it.
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Instructions
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Check your credit report. A mistake could be on it, making it seem as if your score is lower than what it should be. You can get a free copy of your credit report once every 12 months through AnnualCreditReport.com.
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Apply for a secured credit card, one that requires a cash deposit, to establish credit. You must have cash to deposit and that becomes your line of credit. If you put $1,000 in your account, for example, you have $1,000 as your line of credit. Once you prove that you can use the card responsibly by paying your bills on time, the credit card company may add to your credit line, according to Bankrate.com.
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Check with your credit union if you are a credit union member to try to get the best deal on a card. Credit unions often have lower interest rates and annual fees, according to Bankrate.com. Bankrate.com also has a list of secured credit card issuers.
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Read the fine print. Some secured credit cards have application fees and an annual fee, and the prices vary.
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Ask if the secured card issuer reports to the credit bureaus that the card is secured. It's better for your credit score if the card is not reported as such.
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Start making purchases using your secured card. Pay the card off each month.
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Tips & Warnings
Once you start paying your credit card bills on time, you will begin to establish a good credit history. Payment history accounts for the largest percentage of your FICO score.
After about a year of making your payments on time with a secured card, the card issuer might offer you an unsecured card.
You may be able to obtain an unsecured credit card that has a low limit and a high interest rate.
Watch out for bad secured credit cards that make you buy a monthly insurance policy.
