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As you already are experiencing bad credit, you don’t want to have multiple rejections listed on your credit reports. What many consumers don’t realize is that each and every time they apply for a credit card an inquiry goes on their credit report. Too many inquiries can result in even lower credit scores. So, there are a few tips that can help you with finding a credit card when you have bad credit, so you don’t apply for a credit card and get another rejection. These steps will help you improve your credit scores and increase your available credit.
Consider Applying For Store Credit
If there is a store that you frequently go to and make regular monthly purchases, then apply for a credit card online from that store. Oftentimes, you can apply right at the checkout register; however, when you apply online, you will typically receive additional premiums such as a percent off coupon good for a full day of purchases. You will most likely not be approved for a large dollar amount of credit; however, the majority of smaller department stores, and even the big chain ones, will issue just about any applicant a $300 - $500 credit limit. It’s important to choose a store that you frequent, because that low credit limit will also come with a higher percentage rate, with the average store annual percentage rate being around 23%.
You can use your store line of credit to purchase goods and services you normally would have paid cash for. Then, at the end of the month, pay off the credit card in full. This will help you build a solid credit reputation as someone who pays their cards off in full each month, and will allow you to find better online credit card offers in the future that you will qualify for. What you want to avoid is overextending your credit limit on the store card, or building up a big balance where you only meet the minimum amount each month. Paying off your credit card in full shows that you have access to the funds needed to do so and that you are a responsible and regular buyer. Paying only the minimum and carrying a large balance will likely not improve your credit score, and may even lower it.
Consider Applying For A Secured Credit Card
Secured credit cards require applicants to make a deposit or offer other collateral for use of the credit line. In most cases, you will receive a line of credit that is either equal to or double the amount of your deposit, but no more. If you choose wisely and apply for credit card online offers that will build your credit, the deposit you have on hold with the credit-issuing bank will earn interest, thereby putting your money to work for you. It is important to use this credit card wisely as well. Paying off a secured credit card in full each month will help you become eligible for a credit limit increase, without need of an additional deposit. Instead, the credit card increase is based on your payment history.
Many banks will issue secured credit cards to consumers with a poor credit history. Amount of credit is usually under $1000, and how you use the card will affect if the lender will increase your credit, or maintain it at the current dollar amount. Often, if you have a full twelve months or one year of a solid repayment and positive credit history with the lender who issued your secured credit card, you will be offered a credit increase on that account or the offer of changing over to an unsecured credit card, which ideally is the goal, as that way your deposit can be accessed instead of held as collateral. You may also find that the issuing bank will offer you promotions such as to apply for a business credit card or other banking services you weren’t eligible for before.
It is very important that you look at the terms of the secured credit card and understand them. Most secured credit card offers will have an annual fee associated with them, unless the credit card is a prepaid card and the balance of your deposit is your credit line. If there is not an annual fee, then be on the lookout for additional transaction fees such as monthly service charges, high over the limit fees, late payment charges, or high monthly minimum payments.
Where To Apply For Credit Card Offers Online
If you are looking for legitimate companies to apply for credit card offers online and you have bad credit, the following secured credit card offers are a place to start. These offers are good for individuals who can put down collateral to open a credit card. You may have been told your credit report was sub-prime or that you have poor credit.
Credit.com For Credit Scores Under 599
At http://www.credit.com/products/credit_cards/sub-prime.jsp, there are several offers for consumers who are considered sub-prime with credit report scores under 599. These credit cards will require that you submit a deposit account with their issuing bank in order to open the line of credit. These secured credit cards are often called prepaid credit cards because your credit line will typically equal the amount of your initial deposit.
Credit Loan® Consolidation Credit Cards
At http://www.creditloan.com/cardoffers/, you can learn more about how to use the secured credit card offers from Credit Loan® to help rebuild your credit as well as apply directly. Most of the credit card offers are prepaid cards that you load with money, but the issuers report monthly to credit reporting bureaus to help you increase your credit. There are also deposit secure credit cards, which require you to have a deposit on file with the issuing bank.
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