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Imagine feeling like you’re locked out of the financial world because of your bad credit or nonexistent credit history. It’s frustrating, right? Credit card companies tend to be skeptical of those with less-than-stellar credit scores, deeming them high-risk borrowers.
Don’t lose hope just yet. Believe it or not, there are ways to change all that and get a credit card, even if your credit history is lacking.
1. Know Your Credit Score
First things first, let’s assess the situation. Check your credit score and report to truly understand where you stand. Most cards have minimum credit score requirements so you’ll need to know this number before you apply. Luckily; it’s not hard to find out. Request your credit report from one of the three major credit bureaus – Equifax, TransUnion, or Experian – or you can get if from financial agencies like myFICO. MyFICO will also help you monitor and improve your credit score. Once you have the report in hand, carefully examine it for errors or inaccuracies that might be hurting your credit.
As a Bonus: Get your credit score and report instantly from myFICO! Check for errors, make disputes, and watch your score soar.
2. Choose the Right Card
Select the right credit card for your circumstances. Not all credit cards are created equal; some are specifically tailored for individuals with poor or no credit. Although these cards may come with higher interest rates and lower credit limits, they serve as stepping stones to help you improve your credit. Take the time to research and find the right card that suits your needs. Be strategic when applying, as multiple hard credit checks can negatively impact your score. To play it safe, allow at least six months between applications.
As a Bonus: Apply online for Reflex Platinum Mastercard and get a credit limit of up to $1,000 that doubles in just 6 months.
3. Get a Secured Card & Build Credit
Here’s a nifty solution for obtaining a credit card with bad credit—apply for a secured card. These cards are easy to get and help you build credit without hefty fees. They do require a security deposit, typically equal to your credit limit. This deposit acts as a safety net for the issuer in case you miss payments. Be sure to select a secured card that reports your good payment history to the credit bureaus, as this will reflect positively on your credit report.
These cards are specifically designed to assist individuals in rebuilding their credit and are more accessible than their traditional counterparts since they pose less risk to credit card companies.
As a Bonus: Build your credit with Go2bank’s Secured Credit Card. Get a credit limit starting at $100 with no credit check and no annual fee!
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4. Co-Sign for Credit
We all need a little help sometimes; this is where co-signers come in. Approach a trusted friend or family member with good or excellent credit and ask them to co-sign on a credit card application with you. Your credit score then benefits from their good credit behavior. As a co-signer, they are responsible for the debt if you cannot pay, so it’s important to make sure you make all your payments on time and in full.
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5. Level Up Your Credit Game
While getting a credit card with bad credit is possible, it’s crucial to remember the ultimate goal—improving your credit score. An improved credit score will unlock access to better credit cards with lower interest rates and higher credit limits. To bolster your credit score, pay all your bills on time, pay off any debts, reduce your credit utilization ratio, and dispute any errors on your credit report. Over time, your credit score will improve, opening doors to traditional credit cards with more favorable terms, lower interest rates, and better rewards.
As a Bonus: Did you know you can build credit with a debit card? The Extra Card lets you improve your credit – by 48 points on average – and earn rewards!
Don’t let poor credit hold you back! While it can be tough, it is possible to get a credit card with bad credit. Explore your options and discover credit cards specifically designed for people like you, offering a chance to improve your credit along the way.
If you’re ready to build your credit even more read 4 Easy Tricks to Improve Your Credit Score to get you started.
