People with a bad credit history will find it difficult to get a new credit card. Nevertheless, they can still obtain a credit card in spite of a bad credit by following these steps.
1. Make a credit card application on small retailer stores. These companies are still willing to gamble on people with bad credit history. When they accept your application, you should purchase only on small amounts using your credit card. Pay your minimum expenses every month within the specified time. It will save you from paying higher interest's charges. Late payments will negatively affect your credit rating. Never go over the 30-day period limit before paying.
2. Go to a bank, credit union, or savings institution where you do most of your business transactions. They have your business, so they may also give you a chance to get a particular credit card.
3. If you failed on the first and second step, then it is much better for you to choose a secured credit card. A secured credit card is requiring the holder to open a savings account and maintain it. It will serve as a security on your credit lines. Whatever amount of money you have deposited on your account, some of its percentage will be allocated to your credit lines.
4. If you owned several credit cards, reduce its number as much as possible. Inform your creditors and request them to close your credit card accounts. Immediately report this change to other credit card reporting agencies.
5. Avoid tax liens and collections, and bankruptcies. A lien means not paying the federal or state taxes, or taxes on property. Remember, bankruptcies will stay on the credit card report for a maximum of ten years. The tax liens which are already paid and collection accounts remain for seven years. Tax liens which are not paid will forever haunt you.
6. Write a request letter to your creditors asking to reduce the limits of your credits in your accounts. It will help you lower the amount of your available credits. Keep in mind that available credit amounts are still considered by issuers.
7. Ask a family member or a friend to be your co-signer on your credit card application. Select someone who has a good credit history. It will help you a lot. In case you are not able to pay the loan, your co-signer will. However, it will also affect their good credit rating.
There are available clinic on credit-repair as well agencies on consumer credit that are ready to arrange and restructure payment plans. But still, skipped and smaller payments will be always accounted against you, even if the plan was accepted by the creditor. You can be charged by these clinics as higher as 2,000 dollars for restructuring your payments and cover any administrative fees. But some CCAs can arrange it for you free of charge.
8. Always obtain the credit card report copy every year. Review for any errors done and report it immediately to the authorized body. If the remarks posted on your file are true, then make sure to write a brief letter explaining about the negative remarks written in your file. You could do this especially if you are planning to rent a home or a house.
Even if there is a solution to a bad credit history, it is still better if you build a good history credit. No hassles, no headaches, and no drawbacks.
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