It will be hard for people with bad credit to get a new credit card. Even though they have bad credit, they can still get a credit card if they follow these steps.
- If you failed the first and second steps, you should get a secured credit card instead. With a secured credit card, the person who has it must open and keep up a savings account. It will be a guarantee for your credit lines. No matter how much money you put into your account, a portion of it will be put toward your credit lines.
- Ask a friend or family member to sign your credit card application with you. Choose someone whose credit history is good. It will be very helpful. If you can't pay back the loan, the person who co-signed it will. But it will hurt their good credit rating as well.
- Go to the bank, credit union, or savings institution where you do most of your business. Since they already have your business, they may offer you a chance to get a certain credit card.
- Write a letter to your creditors asking them to lower the amount of money you can borrow from them. It will help you cut down on the number of credits you can use. Keep in mind that the amount of available credit is still taken into account by issuers.
- Fill out an application for a credit card at a small store. Even though you have bad credit, these companies are still willing to take a chance on you. When they say yes to your application, you should only use your credit card to buy small amounts. Pay your minimum monthly bills by the due date each month. It will keep you from having to pay more in interest. If you don't pay on time, it will hurt your credit score. Never wait longer than 30 days before paying.
- If you had more than one credit card, get rid of as many of them as you can. Tell your credit card companies and ask them to close your accounts. Tell the other credit card reporting agencies right away about this change.
- Stay away from tax liens, tax collections, and going bankrupt. When you don't pay your federal or state taxes or property taxes, this is called a lien. Remember that a bankruptcy will show up on your credit report for up to ten years. Tax liens that have already been paid and collection accounts will stay on your credit report for seven years. If you don't pay tax liens, they will always follow you.
There are credit repair clinics and consumer credit agencies that are ready to set up and change payment plans. But missed payments and smaller payments will still count against you, even if the creditor agrees to your plan. These clinics can charge you as much as $2,000 to restructure your payments and cover any administrative costs. But some CCAs will set it up for you for free.
- Get a copy of your credit card report each year. Check for mistakes and tell the right people right away if you find any. If the comments on your file are true, you should write a short letter to explain why there are negative comments on your file. This is something you could do if you want to rent a home or house.
Even if you can fix a bad credit history, it is still better to build a good credit history. There are no problems, no headaches, and no downsides.
