You may need a credit card for several reasons. You may need a card to make purchases, travel purposes, or to even build or credit. It is pretty much easy to get credit cards since there are several options to choose from. It only becomes difficult for you to access credit cards when you do not meet the requirements.
One of the main reasons why people do not meet the requirement for credit cards is low credit score. If you have a credit score that ranges from 300 to 650, your credit score is low.
Now, even that has changed, and people with poor credit scores are able to get credit cards easily. However, it depends on where you are looking at. There are cards companies that offer credit cards to people with bad credit. They are guaranteed approval of these cards if they meet the other requirements.
Although such companies do not consider your credit score, they will look at some other requirements. You will need to provide proof of a stable source of income. If you meet the other requirements, you will be offered the card. Check out some cards that people with low credit scores are likely to qualify for.
- Fingerhut Credit Account
With this card, you will know if you will be approved for the card or not in minutes. The application process is simple and once you submit it, you will get the decision from the card company. This card can help you to build your credit history since they report all payments to the credit reporting bureaus. Since they report all payments, they will also report missed payments so it is important to make on time. You can use this card to shop from several shops including Kitchen Aid, DeWalt, Samsung, Sony, Dell, and many more. Before you apply, you will need a valid checking account. The annual fee on this card is $0. You do not need to make a cash deposit to apply for this card.
- Total Visa Credit Card
Total Visa allows you to check if you are eligible for this card without hurting your credit score. The application process is also fast and easy. This card is accepted in all major shops and by all recognized merchants. If you are approved for this card, you need to pay an $89 processing fee to activate the card. You can use the Total Visa credit card to build your credit history. Your line of credit will depend on your credit score. The monthly payments are also manageable.
- Green Dot Primor Visa Gold Secured Credit Card
With this card, you can access an amount that ranges from $200 to $5,000 in a line of credit. You will need to make a cash deposit as a guarantee for this card. The amount you will deposit depends on your credit score. This cash deposit is fully refundable. There is no minimum credit score requirement when you apply for this card. You can use this card to build your credit history since this card company report to the three credit reporting bureaus monthly. The application process is simple and fast. The interest rate on this card is a fixed 9.99% on purchases. There is no penalty rate when you use this card.
- First Progress Platinum Prestige MasterCard Secured Credit Card
This card is great for car rentals, hotel payments, and shop purchases. You will need to pay an initial fully refundable cash deposit. The amount ranges from $200 to $2,000 and it depends on your credit score. When you need your deposit back, you will only pay off your balance and then you will receive your full deposit. You can build your credit when you use this card. The company reports to the three credit reporting bureaus. Unfortunately, you cannot access this card if you live in New York, Wisconsin, Iowa, and Arkansas. This card is also a great option for people who need to build their credit. The card company reports to all credit reporting bureaus so if you make regular payments, it is bound to build your credit score.
- Brink’s Prepaid MasterCard
This card is issued by Brink’s, a financial institution that has been in business since 1859. You can access your account through the online account center or your mobile phone. You can check your account balance, find ATM locations, or send money through your account. You can also shop securely online using your virtual account. When you use your virtual account, you do not need to use your account number and this safeguards you from fraud. You will earn several cash back rewards when you use this card to make purchases at restaurants and shops. You will get a $10 purchase cushion when you do not have enough cash to make a purchase.
- Indigo Platinum MasterCard
You can even qualify for this card if you have a bankruptcy record. The application process is straightforward and fast. You can choose a free custom design for your card. This card company also reports to the three credit reporting bureaus making it easy for you to build credit. Once you make regular payments, you can easily build your credit history. This card is accepted throughout the United States. You can use it at any place where the MasterCard is accepted. With this card, you will enjoy fraud protection when your card gets stolen.
- Milestone Gold MasterCard
With this card, you will be able to check if you will be approved without hurting your credit score. the pre-qualification process is fast and simple and you will get results in minutes. Even if you have a previous bankruptcy history, you can still qualify for this card if you have a bankruptcy record. You will enjoy zero liability on your card which means that you will not be held responsible for any unauthorized charges that have been made to your card. This card is accepted at over 35 million locations nationwide. You can choose a free custom design for your card.
- OpenSky Secured Credit Visa Card
In a quest to offer an opportunity to everyone, OpenSky does not conduct a credit check when you apply. You will need to pay a minimum refundable deposit of $200. The amount you pay becomes the credit limit on your card. OpenSky reports to all three credit reporting bureaus and that will help you to build your credit if you make regular payments. According to OpenSky, 99% of their customers who started without a credit card were able to build one within 6 months. OpenSky has a Facebook page that is open to all cardholders. Cardholders can share their experience and gain insight from others when they visit the Facebook page.
- Merrick Bank Double Your Line Visa Credit Card
You can check if you pre-qualify without hurting your credit score. The pre-qualification check process takes just 60 minutes. If you are able to pay your minimum balance regularly for the first 7 months, your line of credit will automatically increase. You will also receive your updated FICO credit score every month. The $0 liability fraud liability protects you from all unauthorized charges. There are no penalty charges when you use this card.
The application process is fast and simple. There are no hidden fees associated with this card. You can strengthen your credit history with responsible use of this card. The card company periodically reviews for your account to see if you are eligible for an increase in your line of credit. You can make payments via their online portal. You will have a zero fraud liability for any authorized charges.
How to Improve your Credit Score
Applying for credit with a poor credit score makes it difficult to access credit that has good terms. Even after you have gotten a card with your poor credit, it is important to start working towards a good credit score. A good credit score will help you to access credit on better terms. You will be able to save on interest rate if you apply for credit packages with a good credit score. A good credit score also increases the credit options available to you. You can choose to hire the services of a professional credit repair company or you can do it yourself. If you decide to do it yourself, here are tips on repairing your credit score.
- Review your credit report for errors and dispute them
The first thing to do is to review all three credit reports and check for errors on these reports. If you realize that you have made payments but it shows as a missed payment, you should take note. In cases where bankruptcy is still on your report after the period (7 to 10 years) has elapsed, that can also be an error. Accounts that you did not authorize or process are also errors. You should dispute these errors. You can dispute the error by filing a dispute to the credit reporting bureau.You can file via phone, online, or mail. To file via phone call, you can begin the process by calling the number on your credit report. You can also visit the bureau’s website and file the dispute. Although these methods are applicable, however, it is recommended that you file your dispute by mail. You can do this by submitting a certified letter along with proofs of your claim to the credit reporting bureau. The bureau will contact the company who provided the information and they will investigate the claims. They are expected to submit proofs to support what they reported in the credit report. If they are unable to provide proof, it will be deemed as an error. The information will be corrected. The credit reporting bureau will also send you the results of the investigation. If the error is corrected, it will improve your score.
- Increase your credit limits
Another way to improve your credit score is to increase your credit limit. You can call your credit card companies to ask if they can increase your limit. If your credit history is decent, the company will do it without any problems. It is important that when they increase your limit, you do not increase your spending. The only reason why you are increasing your limit is the improve your credit utilization ratio. When your credit limit is high, your outstanding balances look small and this is very beneficial when your credit score is being calculated.
- Pay up your debts
Plan and clear your debts. You cannot do it all at once but you should make plans on how to make regular payments to clear your debt. Regular payments will help reduce your debts and also improve your credit history. If you have outstanding debts on your credit card, you can make multiple payments in a month. This also does a lot of good to your credit score. When you are paying up your debts, pay the high interest loans and credit card debts first. Some loans do not have high damaging effects on your score. Debts such as medical loans do not weigh much on your credit score. So you can pay other debts before paying off your medical debts.
- Adjust your spending habits
When you decide to repair your credit, it is important to save as much as possible towards your outstanding balance. You should reduce luxury spending such as visits to luxurious restaurants, impulse spending, and shopping at high-end shops. You should draw a budget and stick to it. The budget must include all your necessities so that you do not out of the budget to buy something you really need.
- Ride on good credit accounts of someone you trust
If you know someone who has good credit scores, you can make them add you as an authorized user of their card. When they add you, you will benefit from their high line of credit. When you decide to do this, you should do it with someone you trust. You should note that if the person decides not to make payments, it will affect you as well.
- Extreme Measures
If you realize that you cannot pay off your debt, you can consider debt settlement or bankruptcy. These especially bankruptcy should be the last solution for you. These measures have long term effects but they can help you to get out of debt. Sometimes they are the only way out after you have explored all other options. If you realize that you have no other option, it is better to take these steps earlier than later.
- Maintain a good spending habit
Once you are able to improve your credit score, try to maintain a good spending habit. Stick to the budget even if you decide to accommodate some luxurious spendings. You should also make sure that you do not spend more than you earn and do not max your credit card while shopping. If you go back to your spending habits, you will accumulate more debts in no time. It may even be more difficult to repair your credit the next time.