Who Qualifies For The Credit Card For Bad Credit

Can you get a credit card for bad credit? Many people can if they follow a few simple steps and make sure that certain factors are true before they begin applying. We’ll go over what kinds of credit cards for bad credit car out there and what you can do to make sure that you are approved for one, as well as what you can do if you have been denied by the credit card companies to fix your credit and make sure that you can get approved the next time that you apply. Getting a bad credit credit card isn’t hard if you know the facts about how your credit is viewed and how credit cards work.

Getting credit cards for bad credit is easy once you know how. There are two basic methods, one, meet other factors that make companies want to give you a credit card even with past credit problems or get a secured credit card. Let’s explore the first option. Factors like how much money you make, and how long you have been on your job, as well as how long you have lived in your home and if you are buying or renting are all factors. Also, how recent your bad credit is, is definitely a factor. If your bad credit is several years old you may be able to get a credit card anyway.

Getting unsecured credit cards for bad credit is mostly a matter of luck, although how recent your bad credit history is, is certainly a factor. If you have nothing recent but some hospital bills you may find a company that will take a chance on you that offers credit cards for people with bad credit, but you need to have a stable job and a stable address history. Usually this means a year at least at the same address and you should have a decent income with a very low debt to income ratio – the amount of debt you pay each month as opposed to your gross income – as well. Your debt to income ratio should be 30 percent or less.

You could also go with the secured credit card for people with bad credit. A secured credit card is one in which you deposit a sum of money with the bank or credit card company and they issue you a credit card with that amount as a line of credit. This doesn’t mean that you can spend this money, but that you get credit for purchases that must be paid off within the grace period just like an actual credit card. Not making payments will cause negative information to be reported to the bureaus and your deposit to be taken away. However, if you do make good payments for a year then your deposit is usually returned to you.

You’ll want to watch out for a couple of things as you look over secured credit cards. First make sure that your secured credit card company reports to all three credit bureaus if possible, and that they report as regular credit cards and not as secured credit card. You should also make sure that the sign up fee and annual fees aren’t excessive, as in more than around fifty bucks. Also, make sure that there are no tricky contract details. Read over your cardholder agreement very carefully before you go with a secured credit card company because there are some unscrupulous ones out there.