How To Get A Credit Card When You Have Poor Credit

You should be aware of the effect of credit score on your ability to get a credit card

. Your credit history is the basis for the decision by the bank. If you have a negative credit history, it is very unlikely that you will be given a credit card.

This is because your credit history and score indicate how much of a risk you are to lend money to. A credit card is a loan. You are borrowing money from a bank and paying back with interest. Someone with bad credit is a poor risk, and will likely have a very high interest rate.

Poor credit ratings will also mean that you don't have much of a credit line. You'll have a lower spending limit than would someone who has good credit.

If you do have a bad credit history, it's likely your best bet to get a secured credit card. You also want to ask the insurer about any protective measures or insurance for your card.

In a secured credit card, you have money backing up your credit limit. You have a balance in an account that is equal to the amount that you have been given as the credit limit. In some instances, you may have a lower limit than your account holds. It depends on the lender and their policies; read the applications carefully.

You can also opt to take out a joint credit account, if you have a negative credit history. To do this, you have to have a second person with good credit, usually a family member, who is willing to be on the account with you.

You need to make sure you can make the monthly payment though. It's important. Your rates may be under the normal interest rate, and certainly under the rate for someone with bad credit - but only if you pay as agreed and on time.

Depending on the lender and the card, you may even have to pay a fee. Sometimes this is a one-time fee, and other times it is a yearly fee. Check the specific terms of the agreement you have with the issuer before you accept the terms of the account.

by: Charlie Cross

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