Do you have bad credit? You may still qualify for a credit card! Even individuals with low credit scores, or sometimes even those who have been blacklisted, can qualify for a credit card, a loan and many other types of credit from certain financial service providers.
It is important to remember that your credit score is important and you should try to make your credit record look better before you find yourself in trouble. It is also important to avoid falling into the trap of loan shark agencies who trick individuals into agreeing to high interest rates that compound to extortionate amounts in very short periods of time.
However, if you do need a credit card and you have a low credit score, it is possible to find some reputable financial service providers who will be able to help you.
Who finances individuals with bad credit?
There are a myriad of financial service providers who will provide credit cards for individuals with bad credit. The important thing is to start to try and better your credit rating before you apply for a credit card.
Your application is much more likely to be approved if you can show that you have made an effort to improve your credit score.
Get a copy of your credit record and go through it carefully.
Contact a professional or speak to a friend or family member with experience in this area and find out what steps you can take to better your credit score.
Make sure to pay back all of your debt on time every month and in full. Once you have made these changes, apply to your bank as well as several other financial service providers for a credit card. They should approve your card.
However, there are other, less well-known financial service providers who will provide you with a credit card even if your credit score is low and even if you have shown no attempt to improve it. Many of these companies should be avoided as they are loan shark agencies and will only get you into further financial difficulty.
It is important to find out everything you can about a company before you do business with them and to read the fine print carefully.
What to watch out for when getting a credit card if you have bad credit
Make sure that you ask a professional for help and advice when you are looking for a financial service provider who will approve your credit card. Make sure that you are not getting yourself in over your head and that you will not regret the decision later.
How does an individual get a low credit score?
It is incredibly easy in this day and age to find yourself with a bad credit record.
Many people take on too much debt in the form of personal loans, vehicle financing, bonds and home loans, credit cards, store accounts and more. It is very easy to open a store account or to get credit from many financial service providers and because it is so easy, many people get too much debt and find themselves becoming overwhelmed.
Because of an increase in an interest rate, or because of an unexpected expense like a medical bill or something similar, they will find that they are unable to make their payments to their creditors.
Because they have signed contracts with each creditor agreeing to make payments of a certain amount every month with interest at a certain time every month, missing their payment means breeching their contract.
The non-payment will reflect on the individual’s credit record.
How can you better your credit score?
It is possible to better your credit score. The best thing to do at the first sign of trouble is to contact a debt counsellor to help you negotiate your way through your overwhelming debt. Many people leave this for too long because of embarrassment. Your debt counsellor will be able to help you to manage your load and better your score.