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Getting a Credit Card with a Bad Credit Rating

by Guest on February 1, 2012

Bad credit can happen to anyone. It does not mean that you are a bad person or that you are irresponsible. There are any number of reasons that you can find yourself with negative marks on your credit. Lenders, however, see bad credit as increased risk. You are far more likely to be rejected for loans and credit lines when you have bad credit. There are some credit card companies that specialize in providing lines of credit to those with less than stellar credit ratings. Before you sign up, there are a few things that you should consider.

Avoid signing up for credit cards that you do not qualify for.

Every time a credit card company pulls your credit. This shows on a credit report and has a negative impact. Do not waste time applying for cards that you know you do not qualify for. All that you are doing is hurting your credit and wasting your time.

Pull a credit report on yourself.

You can use this to find out if you qualify for a credit card before the application process is even started. When you see an offer that interests you, contact the credit card company and find out what credit rating is required for a specific offer. They may be able to inform you if you would qualify at a specific credit rating.

Do not wait for offers to come to you.

Be proactive and contact different, well established, credit card companies. When you have your credit rating, you can check to see if they have a credit card offering that fits your needs and your credit situation. This limits the risks of being drawn in by predatory lenders.

Look for reviews on the company offering the credit line.

These can be found online or through credit counseling groups. You may find that some companies are better for bad credit borrowers than others. You may also find companies that practice predatory lending. Arming yourself with this information can save you from lenders that may not have your best interests in mind.

Compare the offers.

Review and compare the different offers to make sure that you have the right one to fit your needs. Pay very close attention to fees, charges and interest rates. Federal regulations mandate that all credit card companies disclose this information to consumers. If you have questions or difficulties, make sure to ask questions. Only by comparing different credit card offers can you find the one that can help you get the credit that you require, even with bad credit.

Of course, always make sure that you fully read the information on the card. Federal regulations require that credit card companies disclose all fees and interest rates. Make sure that you fully understand the cost of owning the card.

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