Is It Possible to Get A Credit Card With A Bad Credit Score?

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Although it is possible to get a credit card, even though you have a bad credit rating, there are no easy ways of doing so. You should not believe the advertisers who claim to be able to fix your credit score for a fee.

Before you apply for a credit card with bad credit history, you may want to consider the available options. People with bad scores are frequently the ones who need credit cards in order to spread the costs of purchases. The first thing you should do is to ask for a free consumer report of credit from one of the three agencies - TransUnion, Experian and Equifax. It is possible that an error can be met in the reports which you can fix and this will improve your credit score.

It may not be possible to get a traditional card from big companies such as American Express, Visa or MasterCard, but if you have an account with a savings institution or credit union or one of the smaller banks, they might look more favorably on your request for a card. Often such concerns are inclined to give cards to the established clients.

You may need a credit card with bad credit history to help you with necessary purchases, and if you could buy all the things in one store, you could apply for a store card, as they are less strict than the big credit companies. If you do get a store card, then you should make a point of paying at least the minimum required every month on time, as credit card repayments are reported to the credit agencies. Eventually a history of prompt payments will improve your credit score and you will be able to get another card that will better suit your needs.

There are secured credit cards which you can apply for with a bad credit history, although you will pay higher application and processing fees than for a traditional card and the interest rates will be higher. With these you have to deposit an amount in the account and this will be your credit line, or it will be a percentage of it. Look on this type of cards as a stepping stone to getting regular ones, and pay promptly and if possible pay more than the minimum required in order to keep your interest payments down and to get a better credit history.

Yet another way to apply for a credit card with a bad credit history is to ask a friend or a relative to co-sign with you. A co-signer must have a good credit rating and if you default on the payments, this will be a black mark on their rating and they will be obliged to pay your debts.

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Source by Donald Holand