While there are a few credit card companies that mainly cater to consumers with good credit scores, there are many credit card options for people with poor credit ratings. Bad credit credit cards, Secured credit cards, student credit cards, and credit cards with high interest rates and low credit limits are just some of the options available to those with limited or tarnished credit histories.
Utilize the credit card finder tool to see which credit cards are offered to bad credit applicants.
Major credit card companies such as Capital One have numerous lines of credit cards available for consumers that do not have good credit. However, even people with poor credit histories are categorized into groups.
Since credit card issuers approve or decline applicants based on their current credit histories, it is important to find out what your credit rating is as well as to review your credit reports for potential inaccuracies. A detailed look at how Americans can take control over their credit reports is available at the Federal Trade Commission website.
Consumers with average to excellent credit usually receive invitations and solicitations from credit cards companies in order to capture their business. If you have poor or no credit, the types, frequency and nature of the credit card offers sent your way would be severely limited. However, carefully reviewing the credit cards that you have been selected for will help you in understanding how this process works.
What do credit card companies consider a bad credit rating to be?
The majority of credit card companies consider the credit scores of their applicants closely before scrutinizing the details of their applications more closely. Because credit card companies often offer multiple credit cards with different credit requirements, it is difficult to determine what the industry considers as consumers with poor credit. If you look at your credit reports and pay attention to the criteria that is listed by the credit card companies that you apply for, you will easily figure out if you have a chance at being approved.
Major financial institutions will not approve applicants that have a credit score that is below the 600 700 points range for any line of credit. Having a credit score below 600 almost automatically qualifies consumers as being a major credit risk. Even with a credit score that is high, having a history of late payments or other delinquencies can prevent you from being considered. The Control Your Credit government-sponsored website thoroughly explains how all of the accounts listed on your credit reports impact your overall rating.
Essentially, the way in which you have handled your previous debts and your relationship with your creditors will have a major impact on how your credit card applications are received. Bad credit is more than a number. Everything that is contained in your credit files will be used by the credit card companies that you apply with to make a determination.
Can anyone with bad credit be approved for a credit card?
Even if a credit card company specifies that only consumers with good scores will be approved, many applicants have been surprised by their decisions. Although it isn’t advised that you apply for more credit cards than you need, testing the waters by submitting applications for various cards may give you positive results. If you cannot be approved for an unsecured credit card with a major bank or a credit union, you still have several options.
While credit cards are technically considered a line of credit, they can be secured fully or partially with a deposit. There are also credit cards that are marketed to consumers that want to rebuild, repair, and restore their credit histories. You can probably expect to pay higher interest rates and fees for your credit card though one of these companies, but you will also have more avenues to consider in the future.
How can you improve your credit score with a credit card?
Credit card accounts are not the only means of increasing your credit score, but they are easily accessible. As soon as you have a new credit card approved, your credit report will begin to be updated with current accounting information. Baldwin Wallace College has posted information and defined terms about credit cards that can help new applicants avoid the most obvious credit pitfalls.
The number of years that you are able to keep your credit cards in good standing will also give your credit score a boost. Even secured credit cards can help you to become a more attractive consumer to creditors as long as you keep your utilization levels low and make your payments on time.
Get online credit cards by accessing the credit card finder tool now!
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