Have Poor Credit? You Can Still Get a Credit Card
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By:
Corey Landis
Submitted
2009-07-10 22:20:56 |
It is possible to get a credit card with a poor credit history, although it ll take some effort on your part, it can happen. Below are some tips on how to go about it. You might be surprised how easy it is.
Before going any further, I would recommend that you get a copy of your most recent credit report to evaluate your current financial situation. Even if the report is worse than you think, and your credit score is lower than you thought, it s better to know. That way you can decide appropriately what the next step in the process would follow. Review the credit report to make sure that it s correct. Sometimes creditors don t report that an account has been paid off and closed. Or you may find loans or credit cards that belong to someone else that has the same name as you do.
The first tip, and the most valuable one is, to pay off pending debts as soon as possible, especially the smaller ones. All the extraneous credit you can clear off your credit card as soon as possible will be better for you in the long run. Get in touch with your creditors and inquire if they would be willing to settle for an amount less than due. Many will surprise you by agreeing, since a small payment is better than no payment. You may also be able to renegotiate a lower interest rate, or eliminate an annual fee.
Now remember, a clean credit card history means a low interest rate. Keep that in mind in your quest to remove the extra bills of your credit history.
The second tip is to apply for a credit card that is secure from your local bank or an online bank. It s up to you how to go about it. A secure credit card is issued to you after you post a deposit which equals the amount of credit that has been approved. That deposit secures the credit card. It can t be used to make any monthly payments. In most cases it won t be returned until the account is closed or you ve made on time payments for at least a year.
The third tip is to find someone to cosign for you. That person is then responsible for making any payments or paying off the credit card balance if you fail to do so. Banks are more prone to approve a credit card for someone with bad credit if the cosigner has great credit and a relationship with the bank. The chances for you to get the credit card this way will be high.
Once you receive your second credit card, make sure to use it well and use it responsibly as it will help you build good credit again. Use the card only to make purchases that you know you can pay off every month. Don t get trapped into running up a large balance, maxing out the card, and then making only the minimum payment every month.
You can get a credit card with poor credit if you know where to look.
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FREE report Credit Card and Debt Management, http://www.creditcardanddebtmanagement.com Corey Landis contributes to several websites on debt consolidation, credit, and loans. http://www.capital-connection.com
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