Can I get a credit card with bad credit?

A tough economy can make it difficult to maintain a good credit rating.  Foreclosures have been at record levels, many people have lost their jobs, and sometimes there are understandable reasons for someone’s credit score to take a hit.  

That being said, debit and credit cards have become a regular part of our world and are often required for renting a car, making purchases online etc.

What should you do if you need a credit card, but have a credit score below 600?

Here are a few suggestions:

1.     Go to your local bank or credit union and inquire about the credit cards they offer.  If you have a history with your local financial institution, they may be able to give you a credit card

2.     Apply for credit cards at retail stores.  These credit cards tend to have lower credit limits, and sometimes the retail stores will accept applicants with lower credit scores because they know they will make a profit on your retail purchases.

3.     Apply for a secured credit card.  This option requires that you deposit funds into an account as collateral for your credit line, but is a great way to start repairing and rebuilding your credit score.

4.     Find someone you trust to be a co-signer on a credit card.  Don’t take this solution lightly.   If you fail to use your card responsibly their credit rating could be adversely affected. 

 

Good Credit Sense:

 

When applying for a secured credit card, make sure 1) you understand the upfront fees associated with the card and 2) that the card you’re applying for reports to the major credit bureaus.  You don’t want to waste any time or money while working to apply for the right credit card despite some credit report blemishes.