A good credit score helps you in getting a loan with lesser interest rates, a credit card with a higher credit limit and many similar financial options. That doesn’t mean there are no options for people with a bad credit score. If you have a poor credit due to some unfortunate financial crisis in your life, you don’t need to worry and sink in the pressure of financial burden. In this article, we will guide on how to come out of a financial crunch by describing top five ways to get credit cards for bad credit. So without further delay, here are top five ways to get credit cards for bad credit.
1. Decide your credit limit
The first thing you need to plan is your credit limit on your credit card. If you already have a bad credit, getting a credit card with a high credit limit becomes more difficult. That said it is not impossible to get a card with higher limits but you will have to bear a very high interest and the card fee is also high in most cases. Hence it’s always a good idea to decide a credit limit which is according to your need. Meanwhile, you can work on improving your credit score on old cards and continue using it later. Once your credit score is fine, your old cards should be good enough to provide you with a high credit limit. It’s always considered better not to close the cards. Have patience and till then pursue a card based on your need.
2. Search for credit card companies that require no credit check
Yes. You have read it correctly. There are many credit card companies these days who offer you a credit card even when you don’t have a decent credit score. For them, all that matters is your earning capability and an approximate estimation of your expenditures. Based on this calculation, companies are willing to give credit cards to people with bad credit. In turn, they get a little higher but yet a reasonable interest rate and an annual fee too.
3. Enquire and know about the approval chances
While there are many credit card companies promising nominal interest rates, their approval chances are not always guaranteed. So if you are in search of a credit card with immediate approval, search for the ones with guaranteed approvals and no credit check. You have an option to have both unsecured as well as a secured credit card. Though, for getting credit cards for bad credit a secured credit card is considered to be a good option. In such scenario, you need to deposit a fixed sum and that will be the credit amount available to you from the card company.
4. Compare cards on below vectors
Once you have done research finding of various credit card companies giving a credit card with a bad credit, next step would be to compare the various features offered by the very cards. Such features can be APR rates, annual fees, the credibility of the credit card company, reward programs offered by the credit card company and the ease of approval. Based on above features you can make your best choice.
5. Do the paperwork
After finalizing the credit card company, make an appointment with the agent or at the office and start the paperwork. If it’s online you can save yourself some travel. Make sure you read each and every line carefully. Sometimes there are hidden charges which are important to know beforehand.
In the end, above five points are very crucial and a step by step guide for people with a bad credit. Make sure to do a good research before you sign the contract with any credit card company.