Credit Cards for People With Bad Credit

If your credit score is low, qualifying for a regular credit card can be difficult. However, there are special credit cards for people with bad credit, called credit builder cards, designed to help you build or rebuild your credit report and scores. The cards have high interest rates and low borrowing limits but are an excellent tool for proving that you can manage debt responsibly.

Read on to learn what it takes to apply for a credit card with bad credit and what to avoid during the application, to be approved.

How To Apply for a Credit Card With Bad Credit

A low credit score qualifies you for a credit builder credit card, but even then, some preparation is needed to get approval. Here's what to do:

1. Examine your credit reports and scores



To access your credit history and scores, purchase your credit report from one of the credit bureaus or get the report for free from your prospective credit card issuer.




With the report in hand, check to see if your credit score matches most issuing companies’ eligibility criteria for credit cards designed for people with bad credit. Check also, their age, employment, and income eligibility specifications. See if you meet these requirements before proceeding.



2. Raise your credit scores



As you prepare to apply for your credit card, attempt to raise your scores. Pay your bills on time, and reduce the credit balances to help your score. With time, the effect of the negative items on your history starts decreasing, and your credit score will improve, qualifying you for more forms of lending like mortgages and better lending terms.



3. Get Pre-approval



Some credit card issuers conduct pre-approval or pre-qualification assessments. A pre-approval is an initial evaluation of your likelihood to receive a credit card. Usually, the evaluation entails conducting a soft inquiry that helps them determine if you qualify. From there, they can guide you on how to apply for a credit card with bad credit. The soft inquiry does not hurt your score and is good for knowing where you stand before applying for on of the credit cards for people with bad credit.



4. Apply for the credit card



If you meet the eligibility requirements, apply for your credit card online or in person at the lenders' physical stores. Bring your personal information and statements of income and current debt with you. There should be no errors in your information, as these could affect your chances of approval or cause problems down the line. You could face legal action for lying on your application.



5. Wait for the lenders' decisions



Wait for the lenders' decisions to see if your application was approved. If you successfully take out any of the credit cards for people with bad credit, now is your time to mend your credit history and scores. A well-managed card with no missed or late payments will improve your credit account. Also, pay the entire balance each month and avoid taking loans for now because they could lower your scores further.

What To Avoid When Applying for Credit Cards for People With Bad Credit

In regards to how to apply for a credit card with bad credit and get approved, here are things to avoid:

1. Do not skip the pre-approval process



While the pre-approval process is optional, it's best to go through it because the lender conducts the credit check on your behalf. With information of where your credit stands, you only apply for cards you qualify for. In addition, your credit score does not take a hit for the inquiry.



2. Check the annual rates and fees



As you check your eligibility, check each lender's interest rate and fees. Compare credit cards offered by various lenders for people with bad credit to find the most affordable. In addition, consider any fine print and ensure you agree to the terms stated before proceeding.



3. Do not make too many applications



Avoid applying for too many cards simultaneously, especially if you're unsure about the lender's application process. Some lenders conduct a hard inquiry into your credit score, which could dip your already low scores. Also, multiple inquiries in a short period are considered a red flag and could lower your scores.

Get Help Selecting and Applying for Credit Cards for People With Bad Credit

A low credit score limits your credit card options, but you can apply for credit builder cards to access credit, build up your credit history, and raise your credit scores. For more help and advice on how to apply for a credit card with bad credit, contact LendMeMoney.com here and we will contact you promptly with the best credit card offers!