In today’s world possessing bad credit can be extremely problematic and impact many areas of your life. When this is the situation you are in, it can often be very difficult to obtain a credit card with the hope of rebuilding your credit, but there are ways to place one directly in your wallet. There are certainly options available to you, such as receiving a credit card from a retail store or investing in a secured credit card.
Is Having a Credit Card the Right Choice When You Have Bad Credit?
Prior to embarking upon the process to obtain a credit card, you must be utterly straightforward with yourself and determine whether you have what it takes to be a responsible user. Credit cards can be perilous to your financial present and future if they are used to live above your means. If this was an issue that placed you in your current situation, then your best option may be to remain plastic-free.
If you decide you are indeed a responsible user, than here are some excellent reasons to own credit cards:
- To use in a pinch. A credit card can be your ultimate savior if you incur unforeseen expenses that you don’t currently have the cash for such as a medical emergency or household repairs. You can extract the necessary amount immediately and then take care of the balance as swiftly as you can.
- To repair bad credit. A great way to establish a good credit score is to procure a credit card and then make your payments on time.
- To build rewards points. If you wipe out your balance in full every billing cycle, companies often offer rewards points you can use to purchase other items.
- To place hotel rooms or rental cars on hold. Many of these businesses and others as well will not allow you to reserve any of these services without a credit card.
How to get a Credit Card When You Have Bad Credit
If your bad credit impedes you from obtaining a credit card immediately, you can engage in one of these methods to set your feet on the path to getting a credit card:
- Get a bank account. Credit companies often review bank accounts as a sign of a person’s ability to pay their debts. In all honesty, nearly all companies stipulate that you must have a checking account to begin the application process.
- Go with a store or gas company. On many occasions, these types of cards have the lowest requirements. If you receive the card, then make sure to make the monthly payments. This is a great step to establishing a good credit score.
- Review bank cards with small credit limits. Major companies like Citibank, often offer credit cards with a small credit limit. Many of these often have incredibly high interest rates and other annual service fees. Once you establish you are a responsible user, which usually takes 12 months, the way is paved to obtain cards with better interest rates and no service fees.