Finance

How to Get a Credit Card Having Bad Credit Score : A Helpful Guideline in 2020

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We can’t completely deny the fact that the credit card makes our life a lot easier to fulfill our daily basic needs. There are various banks and Credit Card companies that offer the credit card to the individuals after meeting their predefined criteria. One of the important factors in the credit card, which plays a vital role, whether in getting qualified or increasing a credit limit, is the “Credit score.” People who have bad credit – usually a score below 580 have fewer options for a credit cardThat’s because a card issuer doesn’t want to take a risk by qualifying those people who can’t pay the debt. But do not completely lose hope because there are still other options to get a credit card despite having bad credit.

Just because you already have poor credit doesn’t mean you can’t get another credit card. You can still use lots of available alternatives to get qualify for the new credit card. Besides, some of the card issuers also offer a chance to get a credit card to those people having a lower credit. However, if you want to apply for a good credit card where you can get pretty high benefits, then you can follow the tips which we have mentioned down below.

Now, it’s time to forget everything which you have previously done with your credit card and think towards improving your bad credit to get a new credit card.

What is a Bad Credit?

The credit score is determined on the range. A range is categorized into there parts excellent, good, and bad. Most of the credit card lender uses the FICO credit score to determine the credit score of a cardholder. So if you have a score of 800 to 850, then it is considered an excellent score. Likewise, a range from 590 to 700 is a good score, and if your credit score is under 580, then it is considered as bad credit.

A bad credit score is caused by different factors such as not paying bills on time, owe way to much credit or money, not begging a responsible cardholder, and more. So these factors play a significant role in bad credit.

Likewise, previously if you have also filed for bankruptcy, then it also leads you to the bad or poor credit score. Your points or score will get declined. Not only that, but this negative act also stays on your credit history for over 10 years, which is enough to hurt your credit score. 

Simple Tips to Get a Credit Card With Bad Credit

Make sure you head through the all listed option for the best result.

Check Your Credit Score

Well, you probably know that you have bad credit if you previously apply for a credit card or other credit like service. And you also might get rejected because of your poor credit, right? At that time, you might suddenly apply without checking your credit history. So this time, do not make the same mistake, first know your credit score that on which position your credit is standing.

To check the credit score, request for your credit report from the three major bureaus of credit (TransUnion, Equifax, and Experian). You can get your credit report every 12 months for free according to federal law, but first, you must request your report. After getting a report, take the time to review your full report so that you will know how much credit you should require to be qualifying for a card. And also check whether you are eligible for the next credit card or not with your current score.

Besides, you can also check your credit score through CreditKarma.com free version website. However, you should be aware of these sites because they can ask you to complete the signup process. For that, you might have to provide your credit card number in order to get a free credit score. So, they will charge you a fee for your trial subscription. And if you don’t want to pay any fee, then use the previous method.

Don’t Apply a Credit Card That Needs a Good Score

It’s better not to apply for a credit card that requires a good score even though you might think your application can get approved. On the one hand, your application will definitely get denied, and on the other hand, it will hurt your credit score, how? Well, when you constantly got rejection in a while applying, then it will add on your credit report. The more you apply, the more your credit score will fall down. Here, you already have poor credit; now, you will have even more worst credit score.

You can say that these credit cards aimed for someone who has an excellent credit score because of the benefits which they offer to the cardholders. A credit card which provides good rewards, bonus, low APR, and interest rate always target the customer with good credit. That’s because a card issuer believes that they can pay their borrowed debt from time to time.

And there’s no way to can fit on that category with your poor score even though you can pay your debt on time. So, your application is more likely to get rejected.

Makes the Decision to Switch on Better Cards

Suppose you have a credit card with poor credit rating, and you think that your current situation will be on the good track – but it’s don’t. Do you know why?

Well, first, you have a bad credit score, and even on that, you don’t get any offers or benefit for using the card. In addition, you are still paying a high annual fee, interest rate, security deposit. Not only that, but you also have a low credit limit, which makes you prevent spending more on purchase. However, these situations are just for a short period of time but still affects more and more.

So, here’s a thing which you can do, like paying a bill from time to time. Keep clearing your debt as soon as possible when you save extra money in your wallet. If you become the responsible cardholder over time, then switch for another card in about 12 to 18 months. Some of the secured cards also allow cardholders to switch to the unsecured card even without closing your current account.

Make a perfect vision and follow that for your better financial future.

Improve Your Credit Score Through Tracking

Another option to get a credit card despite having bad credit is to improve your credit score through tracking. If you want to shift from your current secured card to another, you first have to learn about managing your overall finance. When you keep your credit score on the right track, then your credit report will automatically heal over time.

Reputable organizations such as the National Foundation for Credit CounselingClearpoint, and Advantage Credit Counseling Service offer free credit counseling to the cardholders.

You can learn some useful tips by visiting one of these websites about to maintain your credit score.

Besides, some of the credit card company also provides the credit tracking tools to the cardholder where you can check your score. Not only you can track your credit score, but you can also protect your credit card from fraud.

So, the point is here to improve your credit score by improving them day by day so that you can switch to another better credit card.

Also Read: Smart Techniques to Build Good Credit in 2020

Search For a Credit Card With Bad Credit

If you are struggling with the bad credit, then you can search for credit cards that qualify your application even though you have a poor credit score. However, people having a bad credit score always not get approved by the all card issuer. But still, there is hope where few card issuers can let you have a credit card.

Besides that, some of the retailers also approve the application for those who have bad credit. There is a greater chance of your approval by these retailers, but there is a limitation where you can only use your credit card in the store. You cannot use it as a Visa and Mastercard, but if you only make a purchase in the stores, it’s a great deal. However, if the retailer simply accepts your application, then you may have to pay a higher interest rate and even get low credit limits.

Likewise, you can also convert your secured card into an unsecured card if you become a responsible cardholder over time. Besides that, there is also a chance where your security deposit keeps you from getting a secured credit card. In that case, add $50 in your savings account for the next 6 months. After that, a little amount of your deposited money will go for your application, and the rest of it in your main balance. What this helps a cardholder is that there is a chance of getting an unsecured credit card. But you have to deal with a low credit limit.

So even you have bad credit, you can apply or get another credit card.

Apply For the Retail Store Cards

You can also use the Retail store card if you have a bad credit score. Retail store cards are issued for one particular store or in a family store. You can purchase the goods and items from that store even though you have bad credit. That’s because you can easily get approved for a retail store card. A good thing about store cards is that you can even get certain discounts, rewards, and cashback bonus.

Retail store cards also help you to build a credit score, so if you have bad credit, then you can slowly increase your credit score within time.

What we don’t like about the retail cards is that they have a high APR rate and interest. So, for enjoying the good benefits of the store cards, you also have to deal with the consequences.

Best Credit Cards For Bad Credit Score | Credit Cards For Poor Credit

You can also still use the credit cards if you can’t improve your credit score. For those people who have very bad or poor credit then they can use the following listed best credit cards.

Having bad credit doesn’t mean that you can use or get a credit card. So don’t lose hope and grab one of these credit cards which doesn’t need a good credit score.

  • Discover It Secured
  • OpenSky Secured Visa Credit Card
  • Capital One Secured MasterCard
  • Indigo Unsecured Mastercard
  • Merrick Bank Secured Visa
  • Credit One Bank Platinum Visa
  • Credit Builder Secured Visa Credit Card

Frequently Asked Questions

Here we have an FAQ regarding our article topic on how to get a credit card despite having bad credit in 2020.

Can I Get a Credit Card With a 500 Credit Score?

Well, with your 500 credit score, you can have a secured credit card that works just like a traditional card, but you have to deposit the security amount. However, a few card issuer can give a credit card according to your 500 scores, but you have to pay a higher interest rate and even get a low credit limit.

Can I Get a Line of Credit With Bad Credit?

It might be difficult for those who have a bad score to get a line of credit because the card issuer or a bank may not approve your request.

How to Know if You Have a Bad Credit Score?

If you want to know whether you have bad credit or a good credit score then you can use the free tools to check your score. One of the best online free tools CreditKarma.com lets you check your credit score in a couple of minutes. So visit the Website and check your credit score today.

What Stores Approve Bad Credit?

Here are the following store’s credit cards, which you can use to enjoy your daily purchase in the department stores. The following store’s cards are:

  • Macy’sMacy’s Credit Card
  • Belk Credit Card
  • Kohl’sKohl’s Charge Card
  • Dillard’sDillard’s Credit Card
  • TJX Rewards Credit Card
  • JCPenney Credit Card
  • Nordstrom Retail Card

Conclusion

Having a bad credit score is a frustrating thing to deal with – but there is still hope where you can get a credit card despite having a bad score. It’sIt’s not necessary that all cardholders will have a good score, some of them also fighting with bad credit. They also even have a chance to get another best credit card but only by improving their score from time to time.

So, don’t worry and always think about your bad credit, follow the above-mentioned option, which is quite helpful to get a credit card even though you have poor credit.

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