- You can apply for credit cards at smaller organizations like small retail stores instead of well-established financial institutions. If your application is accepted by the small stores, then see to it that you at least make a small purchase once a month and pay the minimum payment required on time.
- You can also approach your bank for a card. If they already have your account or business for several years, then they might issue a credit card to you.
- You can ask your friend or a relative to jointly sign a credit card with you. You can choose a person with good credit. Be aware that if you are not able to pay the loan, then the joint holder must pay it. This way of getting a credit card is not advisable.
- You can apply for a secured card if all other ways of getting a credit card fail. You will be required to open and maintain a savings account for your line of credit which will be a percentage of your deposit.
- While you are trying to get your credit card, do pay all your bills on time.
- Once you get one, offers for credit cards will start pouring in from other credit card companies as well. At the most, keep two credit cards, one for a small credit limit and one for a large credit limit. Keep them paid!
- Do not get a card where you have to pay an annual fee. In fact, most credit card companies today don’t charge an annual fee and you should apply for credit cards in such companies.
- If you are denied credit by the creditcard company, then by law you can ask the company for the reason. You may also request the company to send you a credit report at no charge.
These are some of the steps where you can get a card even with bad credit. Once you do get a credit card, you should follow some basic rules while using it. Do not overspend. Pay for everything in cash and use your card only in case of emergencies. This will keep you from buying more than you can afford. Many cards carry interest rates ranging from 18% to 21%. If you fail to pay off your balance every month then it is better for you to stop using your credit card at least until you manage to pay off the pending balance.
To help rebuild your credit in the quickest way, never spend more than 50% of your credit limit and do not keep a pending balance for more than 6 months. Always keep your credit ratings high as it may help you in the future. If you are paying all your high balances on your credit card on time, then try not to part with that card as it will show well on banks and other financial institutions with whom you would like to carry business relations. Try not to pay your balance late as that may lead you to pay extra interest or a late penalty which is totally uncalled for and expensive.
