Finding yourself on hard times and being unable to pay your mortgage or car loans can put you in the realm of bad credit quickly. Just a few missed payments can lead to marks on your credit report that will not go away for several years. If you have fallen on bad times and your credit score is a reflection of this, you may be wondering what you can do in order to redeem yourself in the eyes of a creditor. The process of rebuilding credit is a long one and there are no easy ways out. That being said, if you are willing to take the necessary steps to rebuild and become responsible with your spending, then you can climb above your perpetually low credit score.
One of the first questions many people ask is, “How can I get credit cards with bad credit?” While this used to be nearly impossible due to stringent credit checks from many lenders, over the recent years many companies have lightened their requirements and have become more lax on those people who have a bed credit score. While this lax policy of acceptance means it is possible for you to obtain credit cards with bad credit, the rules and stipulations of such a card may not be something you are able to afford in the end.
Taking It One Step At A Time
The first thing you need to understand is that you filling out any credit application with a poor credit score is a gamble. You should expect to be turned down and receive several rejection letters from traditional creditors who are not willing to take a gamble on your status as a poor credit consumer. While rejection in this realm is fairly common, there are certain places that offer a higher success rate than simply filling out several credit card applications on the Internet and hoping you get one. If your credit score is particularly low, you may need to do a bit of credit building before you can obtain a credit card from a reputable lender.
Small retail stores such as clothing outlets usually offer their own line of credit. A good example of this is Belk and Kohl’s, both of which have an in-store line of credit. If you frequently purchase clothing from either of these stores, or any other store that offers an in-store credit line, consider signing up for this. While it is not a true line of credit that can be used anywhere, making small purchases and then paying the minimum monthly amount will begin to re-establish yourself as a responsible borrower. You will need to carry a balance in order to establish credit, but you should not max out whatever credit limit you are allowed. This is irresponsible borrowing that likely got you into trouble in the first place.
If you want to try for a traditional line of credit that can be used in a wide variety of places, you should first attempt to get a line of credit with your bank. If you have been a valued customer of theirs for several years, they may be more willing to work with you despite your bad credit. Of course, this method is not guaranteed, either. If all else fails, your bank may be able to offer you a secured credit card. This type of credit card is one in which you are required to maintain a savings account that will serve as backing for your line of credit. The amount of credit you can gain through this method is usually a percentage of the amount you deposit into the savings account.
Don’t Be Afraid To Ask For Assistance
If the above methods have proven fruitless for you, it may be time to turn to a family member or friend for help by having a co-signer. This method should always be a last resort of obtaining a credit card because if you default on your payments, then your co-signer is just as liable as you are. This makes many people wary of co-signing for someone with bad credit, which is why it is often a last resort for many people. If you do have someone who is willing to co-sign with you on a credit card, keep in mind that their credit rating is taken into consideration as well.
The above mentioned methods are all viable ways of obtaining credit cards with bad credit, but whether or not you are successful will depend largely on your current credit score, your credit history, and the information contained in your credit report. If you would rather wait out your period of bad credit instead of trying to work with a lender to obtain a credit card, all information good and bad is expunged from credit history after five years, except for certain chapters of bankruptcy. Waiting out your bad credit can be difficult, but it is not impossible.
The more viable option is to improve your credit record one-step at a time. There are certain steps you can perform to ensure that nothing impacts your credit history so that eventually you will see a raise in your score, instead of a drop. First of all, ensure that you are paying all of your utilities on time. Never miss a payment and never wait for a late notice. Even these small inconsistencies can show up on your credit report if someone digs deep enough. For major purchases such as a mortgage or a car loan, if you find yourself unable to make the minimum payment, ask about refinancing. Lenders are usually more than happy to work with people who are in need of refinancing before their credit is shot.
Overall, obtaining credit cards with bad credit is a hard feat, but it is not impossible. You need to understand how credit works and be responsible with any line of credit you are granted so that you can put yourself back on the road to having decent credit. As many people will tell you and as you might have already experienced, living with bad credit can be nearly impossible when everything from housing and job positions rely on a credit check.
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