How to Get a Credit Card If Your Credit Score is Under 500
For most people, it is impossible to get a credit card nowadays if you have bad credit. Credit card companies have their ways on checking on their applicant’s financial status and records. If the credit card finds out that the applicant has a credit score under 500, then the company will be reluctant in granting the applicant a credit card.
However, there are still credit card companies that are willing to approve credit cards for bad credit. The deal in this case is that the interest rates are higher than the normal rates of credit cards. It is better to at least improve your credit scores in order to receive approvals for credit cards with better interest rates.
In order for you to get a “bad credit” credit Card, you will need the help of smaller charge cards, which will help you rebuild your reputation and your payment history. These small charge cards will improve your credibility ratings so that the big credit card companies will entrust you with solid credit offers even though your credit score is under 500. Here are some steps that you can take to succeed in getting a credit card even with a credit score under 500.
1. Apply for a department store credit card. Department store charge card is a card that you can only use at a particular department store. Spending will be limited but at least, it is a good recovery for your reputation once you are approved despite and demonstrate a good payment history. Approval with this type of credit card is easier than immediately to get because the requirements are much less than those big company credit cards. Most department stores offer department store credit cards.
2. Apply for a gas station card. Many gas stations offer this kind of credit card. Same as with the department store credit card, you can only use this credit card for purchasing gas. This gas credit card can help you rebuild your credit so that you can apply for other types of credit.
3. Once you have at least one of these small credit cards, you should then make sure that you pay the credit card bills on time. This will rebuild reputation and trust ratings. You can use these types of credit cards for a year or until your credit payment status has improved.
4. Check your credit report every six months to see if your credit scores improved. Being able to pay the small credit card bills will help improve your financial status. This will make you eligible to apply for the big credit cards.
5. Apply for an unsecured credit card. People with bad credit can usually apply for unsecured credit cards with credit limit from 0 to 00. The best sources are from online websites. However, these have higher rates on application and interest. Companies like First Premier, Orchard Bank and Credit One Bank usually cater to people with bad credit who are looking to get a credit card in order to improve their credit history. Companies like First Premier, Orchard Bank and Credit One Bank usually cater to people with bad credit who are looking to get a credit card in order to improve their credit history.
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