The last couple of years of economic woes has hit everyone hard. There have been record bankruptcies, foreclosures and other money troubles affecting even the most financially secure. You may have gone through some tough financial times, but just because you’ve suffered through some rough waters doesn’t mean a credit card is beyond your reach.
Money problems can happen to anyone. You may be worried about rejection if you apply for credit cards, but if you choose the right type of credit card and have a little knowledge of what happens behind the scenes, you could find yourself in the position of being able to acquire some credit and rebuilding your credit history and credit score into the healthy range. What are some of the credit card offers out that will ensure you’re not rejected?
First of all, before you start on your quest for a credit card, it’s a good idea to check your credit report. Many times there are errors on the report that need to be corrected. This could result in a better credit score and more options when shopping compare credit cards that are right for you. Additionally, you can add a 100 word statement to explain to creditors what prompted a drop in the score. It could be due to divorce, illness or losing a job, but especially if the reason isn’t a result of irresponsible spending habits, creditors will understand other extenuating circumstances. Sometimes, this can make a big difference.
Start with your personal bank or building society for credit card options. They know you a little bit better, and you can explain your situation. A personal bank or building society may be more willing to work with you than a faceless or anonymous credit card lender.
Another option is to choose a secured credit card. This means you deposit a certain amount of money to be used against charges on the credit card. Here, bad credit is not a consideration because there is money available for the lender to take should you not pay your bill. Over time, with timely payments, you can rebuild your credit score to the point you will receive unsecured credit card offers and are able to get back on the right track.
As a last resort, there are credit cards available for those with damaged credit, but they typically charge outrageously high fees. These are known as subprime credit cards. Interest rates are high, and if not managed properly, using a card like this can lead you right back into the black hole of debt you’re trying to escape. Any credit card company that requests fees up front or asks you to call a premium non-geographic number are typically trouble and you should walk away.
A credit card may feel necessary, but the advice of most financial experts is to do what you can without them and repair your credit score as best you can before applying for new credit cards. This way, you will have better choices as far as interest rates and fees, which will save you money in the long run.