How to get a credit card when you have bad credit

How to get a credit card when you have bad credit

Getting a credit card can be difficult if you’ve had some trouble paying bills in the past and harmed your credit. But now, there are credit card companies that are willing to take a chance on you and extend you a line of credit.  Plus, the more you prove your trustworthy to that one credit card company, the more offers you’ll receive for credit. Eventually, you’ll be able to get the best credit card companies vying for you. Here are a few ways to get a credit card even if you have bad credit.

Capital One is a company who extends credit to those who have a fair or bad credit history.  As long as you have never tried to get credit from them before, Capital One is usually willing to give you a credit card with a limit of at least $300 to start.  As you make payments and keep in good standing with them, you’ll get credit increases periodically (about every 3-6 months).  You can apply right online and receive an answer in seconds.  See resource list below for links.

Orchard Bank is another company that offers credit cards to those with bad credit.  There is a small fee to receive your credit card, but that is taken away from your credit limit of $300 and leaves you with around $75 to spend until you pay off the full amount.  Once you have been in good standing with Orchard Bank, they will increase your credit limit every couple of months.  You can apply for an Orchard Bank credit card online.  See resource list below for links.

First National Bank offers those with fair or bad credit a credit card, but also has a fee associated with opening an account.  The fee is around $150 and is taken from your initial credit limit of $300 — $500.  Some people are actually able to get a credit limit of $1,000 depending on your credit history.  First National Bank also offers credit limit increases periodically and you can apply online.  See resource list below for links.

First Premier Bank offers a credit card for people with fair credit and one for people with bad credit (Centennial) that lend credit to those with unsettled credit histories.  There is a fee associated with opening a Centennial credit card through First Premier Bank, but that is taken from your initial credit limit as the other credit card companies do.  You can apply for a Centennial credit card online. See resource list for links.

When all else fails and your credit is so bad that you are unable to get a regular credit card, you may want to consider applying for a secured credit card.  A secured credit card is one where you deposit money (from your paycheck, income tax return, or monthly amounts) into the card and use only what you have available.  You are not extended extra credit, rather, you have to deposit money to spend money.  However, a secured credit card is great for building credit as secured companies report your payments just as a regular credit card would.  See the resource list below for links to secured credit cards online.

Helpful Tips:

* Most credit cards for bad or poor credit will require a fee or a high APR…but once you’ve made a few on time payments, this APR comes down and your credit limit will increase.

* Secure credit cards are great because you can’t go over your limit and end up with big fees…plus, you build credit just like a normal credit card.

Links: /?PAI=2390bd8a47dca43cc77dd85e 39a0be3e -credit.php?a_aid=1017&a_cid=1045 ecure/af=p35086&ag=Secured-Credit-Cards


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