How To Get A Credit Card With Bad Credit

When financial institutions decide on giving you a Credit Card, they are increasing their risk because most Credit Cards are Unsecured. The only way for financial institutions to determine whether to give you credit is based on your CIBIL Score / Credit Score.

A Credit Score is a number between 300-900, which indicates the creditworthiness of an individual. The higher the credit score, the higher chances it is for you to get the loan sanctioned. A credit score lower than 600 is considered to be a poor or bad credit score. It would be difficult for people to get a Credit Card on having a bad credit score. So, what will you do if that is the case? How to get a credit card with bad credit?

Here are the Probable Solutions:

#1: Go for a Secured Credit: A secured credit card is a form of credit card that is backed by the cardholder's cash deposit. This deposit serves as account security, ensuring that the card issuer is protected if the cardholder is unable to make payments. When you apply for a secured credit card, the amount you put down as a deposit becomes your credit limit.

A secured credit card is the best option to get a credit card with bad credit because it minimizes the bank’s risk to a great extent.

#2: Apply for a Credit Card with your Primary Bank: If you have a bad credit score, then applying for a credit card with your primary bank is the best option because you might have been carrying on banking transactions with that bank for a long time which results in the building of trust. That confidence will help you to get the credit card easily sanctioned.

#3: Try Getting Add-on Cards: Many Credit Cards provide the facility of an Add-on Card for family members like children, parents, etc. If the creditworthiness of the primary cardholder is good then you may be able to successfully get an add-on card with similar benefits as the primary credit card.

#4: Get a Credit Card with high fees and interest rates: When we get a Credit card, we are required to give a credit card joining fee, an annual fee and there are certain interest rates levied on transactions. Most banks reward individuals having good credit scores with lower fees but the opposite is also true for somebody having a low credit score. A person with poor credit may be able to obtain a credit card with higher fees. These cards often do not demand a deposit from the cardholder and can be provided to those with low credit scores.

Getting a Credit Card, even with a poor credit score is the first step. Post that, one should eventually try to improve his/her Credit Score by following the many measures like paying the bills on time, not exceeding the credit limit, etc. Doing so will help you to get easy credit in the future.

Additional Reading - How To Use A Credit Card Wisely