Do you want to apply for a credit card? If you do, you may need to your credit score first. People with bad credit score will only add more problems to their finance. However, that’s not the important matter anymore
With credit cards for bad credit, even if you have a bad credit score, you can still apply for the credit card and use it like other people. Now, if you plan to apply for this special credit card for the first time, here is what you need to know and do. Knowing these matters will help you to avoid many problems in the future.
Things You Need to Consider Credit Cards for Bad Credit
Before applying for a credit card, you need to know few things below and use it in your consideration. They are:
- Credit Score
Credit cards for bad credit score. Although the credit card is specially made for people with bad credit, they also have the limit on how the credit score condition will be for their applicant. Therefore, you need to know your credit score first. Then, you can find and choose the credit card product that has matched limit. With that kind of credit card, you will have a bigger chance to get approved.
- The Unsecured Credit Card
Credit cards for bad credit unsecured. You can’t just apply any credit card that matches with your credit score. If they don’t approve your application, it will affect your credit score. Therefore, the best solution for this problem is using the unsecured credit card. Usually, they have pre-qualification option. By using this feature, you can check how high your chance to get approved with your credit score. That way you won’t make your credit score become even worst.
- Flashy Credit Cards
You may be tempted by how many rewards you can get or cash back bonuses and even travel card from several credit card products. But, you must remember that you have a bad credit score. Therefore, avoid those grandly offers and focus only on the credit card for bad credit.
- Secured Credit Card
This is another choice that you can take with your bad credit score. However, you can only use the secured credit card for building your credit. Just remember you need to make a security deposit when you apply this type of credit card. You just need to use the secured credit card for a while, then change it into unsecured that is much suitable with your bad credit score.
- Prepaid Debit Card
If you plan to use the secured credit card, you must have a bank account. Unfortunately, opening a bank account will need a good credit score. Therefore, it would be impossible to open the bank account and apply for a secured credit card. The solution here is using the prepaid debit card. This card can be used to apply for the secured credit card. You can’t use it for building your credit. However, this can become a great short-term solution that you can use to start your plan to get the credit card for bad credit people.
Improving Your Credit Score with Credit Card for People with Bad Credit
After you apply for credit card, you also can use your credit card to repair your credit score. Now, the most important question is do you know how to do that? There are 6 steps that you can follow here.
- Credit Report
The first thing to do is acquiring the credit report. This will give you information about your credit score, which can become your reference to build your credit score. There are many ways to get the credit report. One of them is using AnnualCreditReport.com service. From that report, check the pattern of the credit score movement. Find out the pattern that may have the role in giving you problem in building your credit score.
2. Check the Credit Report Accuracy
If you find some of the inaccuracies in the report, make sure you solve that problem. Contact the credit report agency and company that provide the information. This step can be done via online tool on their website, email or phone. The inaccuracies will only give you any problem. It can lower your credit score, which gives you difficulty to build your credit score later. The information from the credit report must be up to date. That’s all that you need.
3. Pay Your Debt
You also need to pay off all of your previous credit card debt. Opening new credit card when you still have credit card debt will only give you problem to fix your credit score. However, after you pay off your previous debt, do not close that card. If you do that, you will have a long credit history. This is a good thing to build your credit score later.
4. Apply for Credit Card
Now, you need to apply for a credit card. Of course, you need to choose the credit card for people with bad credit. Just make sure the limit and the fee won’t hurt your finance and credit score. Make sure it doesn’t have too many inquiries, otherwise it only make your credit score worst. Once you find one, you can start the credit score fixing process.
The best credit cards for people with bad credit
Reminder system or feature seems a simple feature. However, this feature will give you more benefits for improving your credit score. With the reminder system, you won’t forget to pay the credit card fee every month. You need to know, if you pay the credit fee on time, it can improve your credit score by 35%. You also can break how many times you want to pay the credit card fee in a month if once a month payment is too hard for you. For example, you can choose the twice a month or weekly. This will help you to pay on time and build your credit score.
Now, what you need to do is only repeating the process. You must use your credit card regularly and responsibly. Then, pay it on time. If you can do that, the credit cards for bad credit can become a great financial tool for improving your credit score. Moreover, you will also get the card for paying all of your transactions.