Learn How To Get a Credit Card with Bad Credit & Also How To Help Fix Your Credit with Bad Credit Credit Cards
Repair your Credit with Credit Cards
Bad credit can do a lot of damage to your financial stability and credibility. Unfortunately, one of the best ways to dig yourself out of this hole is to rebuild credit and start anew with a more disciplined style of paying off your debt each month. The reason that this is unfortunate is because as soon as many credit card companies see a history of bankruptcy or missed payments, it automatically becomes twice as hard to get an approved card. Without a card, it is almost impossible to rebuild your credit… you can see the vicious cycle. Hopefully, if you are currently struggling to get approved for a credit card, these tips will help you to receive one in the near future.
How Credit Cards Effect Your Credit
The first thing that you can do is to get your finances looking clean and in repair. Credit scores can actually be very forgiving as it takes more notice of your recent spending behavior than missed payments that may have happened three to five years back. Don’t let your credit score haunt you if there is evidence that you have cleaned up in regards to payments, credit card companies will be far more likely to consider you for their services. Keep in mind that they will look at all forms of debt, not just credit card debt. Mini tip- apply for a credit card right after you paid off your monthly debt, this will assure that your record looks as clean as possible when the card company take a look.
The next step is to prove to the credit card companies that you are not relying on credit. In order to prove this, you need to maintain a low debt utilization ratio- this is the amount of credit that you are taking advantage of compared to the amount that is available to you. If you have a $6,000 limit and carry a debt of $3,000, your debt utilization ratio is at 50%. The percentage that credit card companies are going to look for is 30% or lower, so make sure to keep a tab on your spending.
How You Should Go About Getting Credit Cards
While it may seem like a good idea to apply to multiple credit card companies at once in order to provide backup in case your first request does not go though, this will only put you at a further disadvantage. Every time that you initiate the lender’s inquiry by applying for a card, your credit score will take a hit. Therefore, when the credit card company looks at your score, it will seem as if you are asking for a lot more credit. This makes them wary.
Finally, be sure to choose the right card for your history. If you have excellent credit, then you pretty much have your pick of the litter, but if you have bad credit, there is no question whether you should get a secured or unsecured credit card. If you pursue the path of an unsecured credit card you will most likely see annual fees around $75 and ridiculously high interest rates, therefore a secured credit card will give you a lot more stability even in regards to the initial deposit.
Best Bad Credit Credit Cards!
We have put together the list of the best credit cards for people with bad or poor credit. Here is the Gold Freedom Bad Credit Credit Card, that you are guaranteed to be approved for! So no matter what your credit is, Bad Credit Lifeline is here to help get you a bad credit credit card today!
Also See How to Contact Your Collection Companies if you are ever in collections from a credit card!Credit Cards