Finding and Obtaining Credit Cards for Bad Credit

Posted by Andrea Lewis | No Comments »

If your credit’s a bit shaky, no one needs to tell you how difficult it is to find credit cards for bad credit. You’re probably already shaking your head in frustration. Well, there’s good news and bad news: you definitely can get a credit card, even with a poor credit rating, but it’s not always the easiest thing to do.

Understanding the Industry

To understand why credit cards for bad credit are so hard to find, you have to know something about the credit industry. In fact, it’s a good idea to know a lot about the credit industry, and if you want to find out everything in easy, non technical terms, I suggest regularly visiting Credit Card Whiz Kid.

In terms of bad credit, though, you have to understand that every time a company issues a credit card, they’re gambling that you’ll repay your debts and not leave them holding your bills. Your credit history allows them to predict how likely you are to follow through on your obligations. A low credit score warns them that you’re a high risk.

Getting a Card Anyway

Again, that doesn’t mean you’re finished. There are credit cards for bad credit, but many of them are high in interest, consist of unfair terms, and are not meant for long term use.

First of all, try your local bank. If you already do business there, the personal touch may make them more likely to issue you a credit card. If that fails, consider using a secured credit card for a few months to rebuild your credit score.

You have two other possible options: a store credit card or a cosigner. Store credit cards are often less choosy about credit scores, but they also charge very high interest rates, so you should be careful about using them. Consider them a tool to rebuild your credit rating, not a permanent solution to the credit card problem.

A cosigner is someone you trust (and who trusts you!) who has a strong credit rating. They can cosign your credit card, but since that makes them responsible if you default – and subsequently means damaging their credit score – many people are understandably reluctant to take that risk.

Whatever you decide, understand that your card won’t be a permanent solution. When you get credit cards for bad credit, always think of them as steps on the path to rebuilding your credit rating.

Credit Cards Guide