Seven smartest ways for students to get credit card with bad credit

February 25th, 2014 by admin

It’s not an unknown fact that the financial crisis and recession of the last couple of years have left most banks less eager to issue credit cards. Students, specifically, are now having a harder time getting new ones for themselves. Essentially, nowadays, banks want to take less risk with their cash. This means if you’re one of those people who used to have a fairly easy time getting a credit card, you may now struggle. However, this does not mean that you can’t get one.

Bad credit vs good credit

Getting a student credit card with bad credit is not impossible. The reality is most of us don’t really have bad credit. We just don’t have good credit. What you need to understand is that whether you get anew credit card or not, isn’t a simple calculation based on how much you earn. And no, there is no such thing as a credit blacklist. So if you are rejected by one bank, then that doesn’t mean you will be turned down for a student credit card by another. Chances are, you just don’t fit the usual profile they look for in an applicant.

Start small. This is something that most people fail to consider when applying for a new card or loan. Applying for a lower amount cannot just improve your chances of getting a new card, it also helps you get back on track to credit recovery. Ask for what you can only handle.

Get a job. If you already have one, don’t be afraid to look for a better paying post, or an additional part-time job, if you think you can handle it. It goes without saying that holding a job (part-time or full time), will help you earn the trust of the bank you’re applying for. It also helps improve your credit score by giving you the resources to pay your bills on time.

Pay your bills.You can greatly improve your credit rating by keeping with at least the minimum repayments of your bills. You can also boost your credit history by registering on the electoral roll, if you haven’t already done so.

Be picky. One of the biggest mistakes that credit card applicants commit is to apply at every bank they can. Too many applications easily scare creditors. This is especially true if your credit history is already bad. Take time to do your research and apply only for the one that suits your preferences (and payment power) most.

Go for minor credit cards.¬†Or better yet, try a department store or a gas company or some other smaller credit card. Not only is it one of easiest ways to get a credit card with bad credit, getting one will also help future credit card applications with major companies. Keep in mind though, that some issuers of these kinds of cards don’t report to credit bureaus. So better do a background check to make sure that the ones you apply for do. Having an unreported card account (no matter how updated your payments are) won’t boost your credit one bit.

Ask for help. Asking a friend or a relative to co-sign for a card is like swinging a double-edged sword. It can either help you or harm you. Keep in mind, though, deals like these works both ways. In other words, just as their credit can hinder you from acquiring a new card; you can also get them in trouble if you mess up.

Consider getting a secured card. A secured card is like a bad credit credit card. It gives you the flexibility of using a credit card and can be a good way to let creditors know that you can handle the terms. Keep your payments updatedand your bank may soon begin extending your credit line beyond what you have put in.

Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on how to apply for a home loan with bad credit that can help people manage their finances. Know more about things to consider if you are applying for credit cards with bad credit.

Credit card for someone with bad credit?

i have applied almost everywhere. when i was younger my mother used my name over some credit cards and screwed it all up. Anyone got a good card for someone with bad credit?

Answer
Since the bad credit reporting was not yours, why not clean that up first and then start building your credit.

File disputes with the CRA’s and the creditors for those fraudulent accounts.

When your mother stole your identity, used it to gain credit and then defaulted, she left you in a very bad position. Not only are your reports in bad shape but you also run the risk of being sued for the defaulted debts.

You should make cleaning that up a priority over applying for credit – doing that, you won’t have to worry about having collectors hounding you or answering your door only to have a summons handed to you.