Can You Get a Charge Card with Bad Credit?

Can you get a charge card with bad credit? The answer is YES. There are several credit card companies out there that will give you a chance to improve your credit score. You will want to start by researching different credit card companies, evaluating secured cards and how to make your card work for you.

Researching Credit Card Companies

A good place to start researching is with smaller retail stores and their qualifications for approval. Sometimes they are more willing to give you a chance, allowing you to improve your credit score if the card is used properly. If they accept your application, it is recommended you make a small purchase and be sure to pay at least the minimum payment on time. If you are able to pay more, it will help to decrease the amount of interest you pay. Another option is to go to the bank where you currently do your banking. As a result of having your business they may be more lenient in approving a credit card. If all else fails, you may want to speak to your family members to ask if anyone is willing to cosign a credit card application.

Evaluating Secured Credit Cards

Applying for a secured credit card can be a last resort if the other options are not viable. In order to do this, you will be required to open a savings account and maintain a certain amount of money in there as security for your line of credit. With some secured cards, either a percentage of your deposit or the full amount in your account is what determines your credit limit. In many ways a secured card is considered low risk making it easier to be approved. What makes this optimal is that you guarantee payment for any outstanding debt by the amount of money you have in your account, while building your credit score at the same time. Many secured cards report to the credit bureaus on a monthly basis.

Make Your Card Work for You

When starting to rebuild your credit after having bad credit for a long time, do not let your limit exceed what you can pay off in one month. The goal is to pay off the card as quickly as possible to avoid interest rates and fees. As stated above, it would be ideal for you to make small purchases so you are able to pay them in full at the end of the month. By doing this you can build your credit while avoiding any recurring debt and finance or interest charges. In using a credit card, you are also able to avoid any charges incurred when using a debit card, if you pay your card on time, in full.

If used properly a credit card can be a helpful tool. Once you have bad credit, it does not mean you will never again have good credit. It is important not to make the same mistake twice and to know yourself. A credit card statement can be an accurate tool to assess what you have spent money on. Unlike cash, using a credit card can help in your budgeting and healthy spending choices for the future.





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