If you have poor credit, you may have trouble getting a credit card.New creditors are hesitant to extend credit to someone who has reneged on their agreement in the past.Is there anything you can do about this?Can you develop a good credit history—and where would you even start?
Getting credit through a smaller retail store can be a good way to work your way back into having credit.For these, often your credit history won’t be examined as closely.Request that they report to the credit bureaus that you are a good customer who pays bills on time.Some companies don’t report good history, only bad, so it’s important to ask.
If you are already a member of a bank, savings and loan, or credit union, check into getting one of their credit cards.Because you already are invested with them, they are more likely to extend credit.Be sure to follow through on your agreement with them regarding a credit card so that your financial relationship with them is preserved.
Another option is to get a secured credit card.A secured credit card requires you to set up a savings account with the credit card company.This account is secured with the savings account, so if you default on your credit card, they will use some of your savings to pay off the debt.Your amount of credit is directly linked to the amount in your saving.Consequently, your credit card’s limit will increase as you save more.
Once you have a credit card again, or are searching for a credit card, there are many precautions you should follow.You want a credit card with no annual fee—there are cards available without a fee and you should get one.If you are denied credit, make the most of the experience by requesting your free credit report they are obligated to provide if credit isn’t extended.
Get a card with a big, familiar name like American Express, Mastercard, or Visa for the best results.Don’t overspend—it’s just not worth it, long term.Those who use credit wisely pay off the whole debt with each bill, and never pay just the minimum amount due—because that road leads to paying for the item several time over the life of the debt and is not worth it!