Getting A Credit Card With Bad Credit History

If you have a bad credit history and you want to get a credit card, follow the tips below:

Apply for one credit card at a time. Applying for several credit cards at once will sabotage your chances. Each time you apply for a credit card, the credit process starts by the credit card issuer checking your credit report. They will see the other inquires and assume that either you didn't get the cards or that you will use all cards to the max and not be able to meet your monthly payments.

Each inquiry takes two to five points off your credit score. Pulling your own report to check its accuracy has no effect on your score.

Being rejected for a credit card can also damage your chances of being accepted for one in the future.

Avoid scam credit card offers - direct-mail offers that promise "you have been preapproved" for a credit card only mean that you have been preapproved to APPLY for a credt card. They can still turn down your application.

Consider applying for a secured card. Having a secured credit card is a bit like using a debit card. You deposit money in a savings account or CD that is unavailable during the time you have the card. This removes the risk for the credit card issuer. It also gives you the opportunity to test your credit management skills before you get let lose on an unsecured credit card. The amount of the deposit varies, and some pay interest on the deposit. Make sure the issuer will eventually upgrade the card to one that is unsecured. Also, to avoid any stigma that may be attached to a secured credit card, ask how the card will be reported to the credit bureau. Secured cards are often used for customers that have bad credit ratings or have a history of bouncing checks. Even if you have a bad credit history, you goal is to re-establish a good credit history, so find an issuer such as Capital One and Amalgamated that report all the cards they issue as unsecured.

Avoid credit card issuers that deal exclusively in secured cards and don't offer the option to upgrade.

Avoid Web sites that promise to get you a card, they generally charge exorbitant or unnecessary fees. Some cards charge an application fee, a processing fee and an annual fee. If you're late paying those charges the issuer adds a hefty penalty and charges interest on the whole outstanding amount back to the first day of the billing period, even if your purchase was only made two days prior. Unless the charge is an annual fee or a deposit for a secured card from a reputable issuer, don't prepay for a credit card.

Next: Credit Card Debt Consolidation

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