How can I get a credit card with bad credit ?
March 8th, 2007The market niche of people with bad credit is fortunately seen as a business opportunity by many financial institutions that are willing to invest in it.
Here is a list of the top offers if you have poor credit ratings
| Imagine Gold Card | APR 19.75% | No Annual Fee |
| First PREMIER Bank MasterCard | APR 9.90% | Annual Fee $48 |
| Centennial Gold MasterCard(r)/Visa | APR 9.9% | Annual Fee $48 |
| Orchard Bank Platinum MasterCard | APR 15.15% | Annual Fee $39-$59 |
| Imagine Gold MasterCard | APR 19.5% | Annual Fee $150 |
However here are a few things you need to keep in mind:
- Poor credit rating will cost you money
When looking for a credit card with bad credit you should expect to be offered a pretty high interest rate. You may also be offered cards with an annual fee – don’t turn them down straight away as the fee might bring your typical Annual Percentage Rate (APR) down. - Use the card to improve your credit rating
If you ensure you repay each month so there is no charge, after a year you will have built sufficient credit history to enable you to move to a card with a more competitive rate of interest. - Avoid multiple application for credit
Multiple applications for credit, successful or not, can be an issue. Each time someone applies for a card a credit search is undertaken. Each search leaves a “footprint”. Too many footprints can trigger warning bells for lenders. - Make sure the card reports to the 3 credit report agencies.
An important consideration for individuals with bad credit is that the bank that issues the card makes monthly reports to the 3 credit bureaus. This will allow you to improve your credit status little by little, which is the whole point of having the card in the first place. - If you can’t get a regular credit card try a minor credit card
A department store, gas company or some other smaller credit card will help you rebuild that credit. If you can handle a Macy’s or a Texaco card, major card companies will be impressed.
Just make sure that the issuers of department store cards reports to the credit bureaus - If you still can’t get a card try a co-signatory card
You can ask a relative or friend to co-sign for a card. But don’t mess up because friendship and love are in the mix. - Consider a secured card
With a secured card you put up your own money (into a savings account) and that amount (or part of it) is the credit line for your card. Put in $1000 and you could have up to a $1000 credit line. This will be useful only if you pay off every statement. In this case you are letting creditors know that you can handle credit again