Can I Apply for a Credit Card if I Have Bad Credit?
Yes, but your options may be limited. If you have bad credit, it is possible to get a credit builder card! Keep reading to learn more about credit cards, building your credit, and how to get a new credit card – courtesy of Max CashⓇ!5
How Do I Get a Credit Card if I Have Bad Credit?
If you have bad credit, it can be extremely challenging to obtain approval for many different financial products. An individual’s credit history and score are used by financial institutions to determine their financial responsibility and ability to repay their debt obligations.
However, that does not mean it is impossible for you to get a credit card! Despite these challenges, it is possible to secure an offer with a lower score and pave the way toward rebuilding your financial standing. It is important to know the right way to approach building your credit history and which option you may need to choose in order to achieve your financial goals.
Due to the fact that you have an unfavorable financial history, your options may be limited, but there are still offers designed specifically for those who have bad credit. Some offers may even have low fees or come with certain rewards.
What is Bad Credit?
Before going into too much detail on how you can get a credit card, it’s crucial to understand what a poor credit history means and how it affects your financial prospects.
Poor credit refers to a low credit score that results from an individual having missed or late payments, high credit utilization, bankruptcy, or other negative financial marks on their credit reports.
Financial institutions and lenders use credit score models (such as the FICO score model or the VantageScore model) to assess a borrower’s creditworthiness and determine their likelihood of repayment. Subprime applicants are considered to be high-risk borrowers, making it difficult for them to access loans or other financial products.
Having bad credit can also affect your ability to rent an apartment or even obtain certain job positions. But fear not! If you have bad credit, it is not the end of the world. You can still work towards getting good credit and change your financial habits!
What is Considered to be a Poor Credit Score?
Lenders and other financial institutions widely use the FICO store model to determine credit scores. Generally, the FICO score ranges from 300 to 850.
Here is a FICO score range:
- A score of 800 – 850 means exceptional
- A score of 740 – 799 means very good
- A score of 670 – 730 means good
- A score of 580 – 669 means fair
- A score of 579 – 300 means poor or bad
According to the Motley Fool, only 20% of Americans have exceptional credit. Additionally, over 18% of Americans have poor or fair credit. There are several reasons why someone may have bad credit. Fixing a bad credit score takes time and effort, but it is possible.
How Do I Fix it?
If you have a poor credit score, here are some steps you can take to get your score back on track:
- Paying Bills on Time: Making timely payments for all outstanding debts, including bills, can have a positive impact on your score.
- Reduce Debt: Paying off or reducing the amount of outstanding debt can also improve your credit score.
- Monitor Your Credit Report: Regularly checking your credit report for errors or discrepancies can help ensure that your credit score accurately reflects your financial history.
- Use a Credit Builder Card: Responsibly managing this type of tool can be effective if you are trying to rebuild your credit score over time. You can also inquire about a secured credit card, which means that you must use collateral to obtain approval.
Why is it Important to Have a Good Score?
Keep in mind that improving your credit score does not happen overnight. It should be done with a conscious effort on your part. A good credit score is important for a variety of reasons. Having a good credit score will impact your ability to apply for a job or get a car! It can be difficult to make good financial decisions and maintain a healthy financial situation without a good credit score.
How Can You Get a Credit Builder Card?
A credit builder card is meant to help individuals improve their credit history and score by providing them with a line of credit that they can manage responsibly. Before considering one, however, you need to ask yourself these questions:
- What kind of card do I want?
- What features or benefits should the credit card have?
- What kind of offer do I qualify for?
Lastly, to get a credit builder card, you can start by researching different credit card companies that can offer one to you. Then, compare the terms and conditions of each card to find one that suits your needs. Once a suitable credit builder card has been found, you can get started by providing the necessary personal and financial information.
Get Started Today
Or, you can let Max Cash do the hard work for you! Click here to check out the credit card offers from our partners.5 Do you have any questions about getting started? Call 833-207-9052 today to learn more! You can check out the offers and review the information before deciding to look for a credit building card that is right for you.5
