Credit card is a must to have these days. A bad credit should not stop you from having a credit card. They are very helpful when you plan to buy big things in future. So, if you want to have a credit card of your own with a bad credit history or no credit history, you can follow some of these tips to get a new credit card.
Firstly, you should choose a local or a small retail store that is willing to issue you a credit card. Usually small organization’s are in a run to get bigger and are always ready to give a chance to the bad credit audience too. Provide all the necessary information like identification proof, Residence proof and Bank statements. Once your request is granted, go for a small purchase. Pay the minimum payment every month without fail; you can also pay the full amount which will save you by getting charged for the interest.
Secondly, apply for a credit card where you have a business account. Bank is always obliged to grant such requests for those clients who have the accounts in their banks. As the account they hold acts as a security for your card and give them no reason to reject your card application.
Thirdly, if you cannot succeed both the above mentioned methods then you should go for secured credit card. In this, one has to create and maintain a savings account which will act as a security for your card. The credit limit given will be a percentage of the amount in the savings.
Fourthly, try to convince a family member or a friend to co-sign credit card. While choosing the member for co-sign always select a person with good credit as his credit will also be taken into account. When you fail to pay back the loan or the payment then this third person is the one who has to take the responsibility.
Things to remember when you get a Credit Card
When you are in the process of availing a card, always remember to pay all your bills at time. It is always easier to get more credit cards when you have got one. But do not make a mistake of accepting offers from all banks or organizations and line up number of credits. Maintain only three credit cards at the max, where as two should be with small credit limit and one with large credit limit.
Always go for Visa, MasterCard, Discover or American Express as these can be used throughout the world. Search, choose and accept only those credit cards which are free of annual charges.
Although you may get a high credit limit do not spend extraordinary amount anywhere keep your expenses low so that it is easier for you to pay them back. Credit cards have high interest rates, so make sure you pay full amount or else you will end up paying a large amount over the interest itself. If the limit is reached then you will be stopped from using your card until you pay the complete amount. I suggest you not to take such risk and be wise while spending.