Bad credit means you can’t get any financial help from any financial institution like banks as almost each and every financial body considers your credit score to see if you are capable of repayment or not. A bad credit is a black mark on your credit report when you have bankruptcy, late payment, insolvency, missing payments and so on. To rebuild your credit score, credit cards can be a good way if you make monthly payments on time but if you, for whatever reason, lack the funds to make payments it will affect your credit score badly. So to make payments on time opt for short term loans known as a payday loans which don’t have any effect on your credit report.
Using credit cards for improving credit score is good option, here are some tips to get a credit card approval with bad credit and to use them effectively:
Approach your bank:
You have more of a chance to get a credit card from your bank as they know how much money goes in and out from your account every month. They may also consider you as a less risky borrower as you bank with them.
Explain your credit history:
Many credit card companies can consider your credit card request if you outline the valid reason for your bad credit; for example a medical emergency which prevented you from making payments.
Look out for credit cards that come in the mail:
That’s right that most mails that offer you credit cards provide your pre-approval but by getting pre-approval does not always mean that you will get approved but if the mail says that credit card is for bad credit or no credit you can get it.
Opt for a secured credit card:
Secured credit cards are those cards for which you have to provide some deposit as the security to the borrowed amount. You need to provide a deposit that ranges from a few hundred which is refundable at the time of closing the card. Keep a distance from the companies that ask for a deposit even before getting an approval and from those that don’t refund the deposit after sanctioning the card.
These cards charge very high rate of interest and fees, so it will be better to pay them in full and on time every month. These cards can help you to improve your credit and you can easily get approval for them.
I am Alicia Avery. I am a tech writer from Manchester UK. I am into finance and Business. Catch me @financeport.