Obtaining a regular credit card when you have poor credit  

Even though you have poor credit, you might qualify for a credit card. Bad credit scores can’t hinder you from receiving a credit card. You may face some problems but ultimately will end up getting the card. When you have made a financial recovery, your objective should be to qualify for a regular credit card offered by a bank or credit card issuer. You can do this through different techniques such as requesting for a gas card, retail credit card or a secured credit card.

Is it sensible to carry a credit card?     

Prior to trying to obtain a fresh credit card, you should be sincere regarding whether you would use it prudently. Credit cards can turn out to be harmful to your financial security when you use them for purchasing things that you can’t manage to pay back. If mishandling of your credit cards is the principal reason behind your bad credit score, then it’s prudent that you avoid credit cards temporarily. Nevertheless, given below are some reasons that justify the use of a credit card:

1) For building credit    

Getting a credit card and making regular payments on it is an effective technique to build a good credit history. However, be cautious: if you feel you can’t pay off your card dues every month, don’t go for it.

2) For emergency purposes   

If you need to make payments for urgent situations where the payments exceed your savings, then a credit card can work wonders for you. It can help you in situations like an urgent medical intervention or fixing a leaky roof. Charge the cost and subsequently repay it as soon as you can.

3) For getting airline/flyer miles and other points  

If you make timely payments on your credit cards, you can qualify for flyer miles or points that you can redeem while purchasing other goods and services (provided your card doesn’t ask for an annual fee).

4) For booking rental cars and hotel room  

Various rent-a-car companies, hotels and other holiday facilities need a credit card for booking.

Steps you should take to obtain a regular credit card 

If you’re unable to receive a regular credit card instantly, you should follow the steps given below to form credit. Thus, you can qualify for a regular card:

A) Begin with a gas card or retail store card 

These cards are typically simple to obtain. If you receive one, charge things and make timely payment of your bills. This would begin forming a positive credit history.

B) Open deposit accounts in banks 

Creditors assess your repayment ability by checking how many bank accounts you have. This is an indication of financial steadiness and majority of card applications necessitate a checking account number.     

C) Request for a bank credit card with a small credit limit 

You can subsequently request for a normal bank credit card like MasterCard or VISA that has a small credit limit. Initially, you might only be eligible for a card with a somewhat high rate of interest and big annual fee. Sensible use of your card for one year or so can help you raise your credit limit and reduce your annual fee and interest rate. Otherwise, you can request for another card with improved terms and conditions.     

Credit card applications