Bad Credit History Credit Cards: How to Get One

By: EconomyWatch Content   Date: 28 October 2009

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It is fortunate that plastic cards, despite their indiscrete usage and irregular payments that spoil the user’s credit history, serve as tools for improving both. ‘Bad credit history card’ or technically secured credit cards are useful for those who have bad credit. These credit cards are issued based on some form of security deposits. In functionality, it works just like any other credit card.

People with bad credit history card struggle to open a credit account with any other bank. With credit reports that highlight payment defaults and debts, no issuers are usually willing to take the risk of issuing unsecured credit cards to such individuals. Still, a person with bad credit can get a credit card by trying hard to follow these tips:

Apply at a small retail store: Some times, these companies are ready to take the risk. Once approved, ensure timely payments. This will help you to improve your credit scores as well as credit limit with the retailers. Make minimum payments or larger payments to avoid default penalties.

Leverage existing relations: Approach banks or credit unions that you already have a relationship with. These financial institutes tend to pursue strategies that fortify customer loyalty and sometimes, they are willing to offer credit cards without much fuss.

Use your friend’s good credit: Ask a friend to get an add-on card for you on his/her account. Ensure to ask only those friends who have good credit. The better their credit, the easier it gets for you to improve your credit score.

If nothing works, apply for a secured credit card. These credit cards maintain a saving account as a security. Also, the assigned credit limit is usually a percentage of the deposit.

Bad Credit History Card: Secured Credit Cards

There are many secured credit cards that charge a large amount of activation fee and often fail to report your credit activity to the credit bureaus. Make it a part of your schedule to be in touch with the bank’s customer service and enquire about their reporting process and compare these cards on the basis of their interest rates.

Remember, credit cards for bad credit history should have friendly interest rates and in general, have policies that help to maintain a credit account.

 


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