Sometimes it can feel like getting your credit score in the right place is impossible. There are so many hoops to jump through, so much time to wait, and so on. Still, a credit score is not something to be overlooked, as it can have a huge impact on your life and opportunities.
If you’re in this situation, you’re not alone – millions of Americans struggle with bad credit.
The ironic thing is that while you can open a credit card to better your credit, it can be hard to obtain one while your credit score is low. This puts you in a difficult situation, one where you’ll need to learn how to get a credit card with bad credit.
While this can be something of a challenge, it certainly doesn’t have to be impossible. Read on and we’ll walk you through what you need to know about credit card eligibility.
How Credit Cards Help Bad Credit
There are a variety of reasons why your credit score might be less than ideal. Some people have low credit scores not because they’ve done anything wrong, but because they simply don’t have much of a history of borrowing.
Other people have fallen behind on payments at one time or another in their lifetimes, and their credit scores have fallen as a result.
A credit score is important if you want to be able to take advantage of various financial opportunities in your life. You’ll need to have a solid credit score if you want to be able to borrow money, buy or rent property, or make big purchases like a vehicle.
It takes time to get a low credit score back up to an acceptable level, but the best tool at your disposal will be a credit card. Credit cards provide a relatively low-stakes form of borrowing that can slowly build your credit score back up.
Benefits of a Credit Card
If you can make your monthly credit card payments online each month, you can brick by brick push your credit score into the higher digits. Each month that you make your payment in full and on time, your score will improve.
It may not shoot up to where you need it to be right away, but with time, you can get there.
As long as you don’t spend more on your credit card than what you have in your bank account, there shouldn’t be a scenario where this credit card worsens your existing score. If you’re responsible with your new credit card, your score should do nothing but go upwards.
While some credit cards with big benefits won’t be available to those without a great borrowing history, there are still many fantastic credit card options for those with lower scores.
How to Get a Credit Card With Bad Credit
The process of finding a credit card while you have bad credit can be slightly challenging. However, the key is just knowing where to look (and where not to!).
There are some credit cards out there that are designed specifically for people with great credit scores. It’s important to keep your eye out for these types of eligibility requirements as you begin to look for a new card.
You don’t want to waste your time applying for a credit card that you won’t get approved for!
Instead, focus on credit card offers that are specifically designed for people in your sort of credit position.
Secured Credit Cards
Looking into secured credit cards can be a great idea for anyone with bad credit. As far as credit cards for bad credit go, these have the most stringent policies in place to ensure that you are building your score up.
Why? Most secured credit cards require some sort of cash deposit. You have to put money down in order to access your credit options. This means you can’t just be spending like crazy despite not having the money to pay for things.
Secured credit cards are, by the same token, much easier to apply for. There’s less risk involved for the lender and thus they will be more willing to open an account for a person with bad credit. As far as credit card eligibility goes, there’s really no easier option than a secured credit card.
Retail Store Cards
Another option for those looking for a bad credit fix? Retail store credit cards. You’ve likely seen these offers when you’ve gone into your favorite big box stores.
These credit cards can only be used at the stores in question, but because of this, the process of applying and getting approved is much easier. You won’t be able to use your credit card as much, but it can still help you to boost your credit overall.
If there is a retail credit card available at a store you visit quite frequently, this can be a great way to build credit and even save money on your typical shopping trips. Many of these retail credit cards come with cash back offers and other types of savings.
You can read more about the best credit card cash back offers and see what might be right for you.
Can You Get a Credit Card With Bad Credit?
Many people with less than stellar borrowing histories worry about how to get their lives back on track. However, as the above information shows, it is possible to learn how to get a credit card with bad credit. You just need to know where to look and what kind of card to secure.
Need more personal finance tips, tricks, and advice? Keep scrolling our blog for more.