How to Apply for a Credit Card With Bad Credit and Get Approved
Written by
Karen Doyle
Edited by
Emily Gadd
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Regardless of why your credit is bad, knowing how to get a credit card with bad credit and using it wisely, can help you get back on the road to better credit.
Too many credit applications submitted in a short time frame can work against you, however, so you need to know how to choose your credit card applications wisely to increase your chances of getting approved.
Why Your Credit Score Matters for Getting Credit Cards
When you apply for a credit card, the issuer looks at several things to determine if they’ll give you a card or not, such as:
- Your income to see if you can pay back what you charge on your new card
- Your credit score, which reflects things like how many accounts you have, including mortgages, student loans and car loans
- How much of your credit lines you’ve used
- How diligent you’ve been about paying your bills on time
Knowing what you look like to lenders and credit card issues — and what they see on your credit report — can help you choose the right credit card for your circumstances, take steps to improve your credit and potentially increase your chances of getting approved.
Find Out: How to Read Your Credit Report
Secured and Unsecured Credit Cards for Bad Credit
There are two kinds of credit cards: secured and unsecured.
Secured Cards
A secured card requires you to put down a deposit, usually a few hundred dollars. The bank keeps this deposit and issues you a credit card with a credit limit that is equal to the amount of the deposit. If you don’t pay your bill, the card issuer will keep all or part of your deposit. Some secured card issuers will give you an unsecured card after you have shown that you can pay your bill on time.
Unsecured Cards
An unsecured card does not require a deposit. Because the card issuer is extending you credit with no deposit, your credit will have to be higher to qualify. If you apply for an unsecured card, look for one that is a credit card for poor credit. You will probably get a low credit limit to begin with, but it can be raised over time if you pay your bill in a timely manner.
Many credit cards will tell you the kind of credit scores they approve. Look for options tailored to people with low credit scores and increase your chances of approval.
Tips for Getting Approved for a Credit Card With Bad Credit
It’s still possible to get a credit card with bad credit. Try to:
- Boost your credit score if you can: Make sure all of your bills are current. Pay down what you can, but don’t close the accounts.
- Do your homework first: Find the credit card that’s likely to accept you based on your credit score and only apply for that card. The best credit cards for bad credit will indicate that they are for people who are trying to rebuild their credit.
- Apply for a credit card from a company that has a lot of different cards:Â If you apply for one card, the issuer might offer you a different one instead based on your credit profile. The more cards an issuer has, the better your chances are of getting one of them.
Once you get your new credit card, resist the temptation to rack up a big bill. Only charge what you can pay off each month, and make sure your payments are received on time. Taking these measures can help improve your credit score over the long term.
More on Credit Cards
- 10 Things You Need to Know About Credit Card Expiration Dates
- How to Use a Credit Card for a Down Payment
- 10 Things You Should Never Put on a Credit Card
