Nowadays, Why very difficult to get credit card for bad credits. Did you every think of this? Why every one want to improve the poor credits? You may keep searching for the information on how to get a credit card with poor credit. If you want a credit card but have bad credit. Most of us get this type of questions in our mind. And overall how to improve the poor credit history. In this article we are going have a look at all these questions and their answers in a simple layman’s language.
Credit Cards For Bad Credit in 2016
Since the usage of credit cards among people has been increased, number of defaulters is also increasing. Grown numbers of banks or credit card companies are proof. There are various reasons for the person in getting a credit card payment. Therefore, the best way to get credit card is secured credit card. This can be a beginning point.
The basic requirement for the person with bad credit while applying for secured credit card is having a collateral deposit with the bank.
Also Read: How to Apply ICICI Bank Credit Card Online
Benefits of having a secured credit card:
It is very important to analyze the benefits of having a secured credit card while expecting Good Credit Cards for Bad Credit.
- They are, it will help in building a credit history of a person as this is the most important eligibility. Since every bank will look at the applicant’s credit history, calculating repayment capacity becomes more and more important. As the credit score goes high, the card approval arte also goes high and so the credit limit also goes high.
- The most important benefit is getting a secured credit card is possible without requiring income proof. There are many banks to offer credit card for low income.
- Many banks will offer flexibility to the user. You should try to put higher deposit so that higher will be the credit limit. The credit history is based on the amount you spend.
- An individual can earn interest on the deposit and it is a good way to generate returns.
As the usage of the card goes high, then the reward point also goes high.
- Fuel surcharge is waived off when it is used at petrol pumps across country as the minimum amount is spent. Although this is offered by most of the credit card providers.
What are the Points To Consider When Applying For Credit Card:
Here are the 06 points for consider while applying for credit card.
Many individual are grabbed by the banks as they said there are no joining fees. One has to ensure that whether fee is really zero or not.
It is better to ensure whether the annual fee vary every year or remain fixed
ATM With Withdrawal:
You should be aware of charges when credit card is on the use at an ATM for cash withdrawal.
As the card payment cheque gets bounced or payment is made late or foreign transaction, the charge may be put on. For example, if the payment for any service like online shopping is done and money is paid in currency other than INR.
When the usage of credit card is increased, the need to examine the ways of getting credit card for bad credit card history is also important to be considered.
- It will protect the card from fraudulence
- It will help to create credit history which helps in getting loan in the future provided all dues are paid before the due date and usage is for limited time.
- Coupons are provided by various stores to frequent buyers
- Reward points are offered for every purchase
It may look as disadvantage for beginners. Credit card is an entry to the world’s financial life.
There are possibilities to get credit card without any job. It is especially suitable for roles like house wives who come under the category of non working. The card limit will vary for each bank.
- You can also apply for an add on card by the condition provided that, your family member should already hold a card. In order to get eligibility criteria for an add on card, there should not be any payment defaults. Poor credit card will ask you demand some trade off in return for lenders.
Also Read: How to Check SBI Bank Account Balance Online
When you Apply Credit Cards for Bad Credit, you should check whether you are certified under the following conditions.
- Store Credit Cards:
Though store credit cards have very low credit limits and high interest rates, they are often available to people with poor credit scores and their low limits decrease the risk of getting in your head.
- High Fee Unsecured Cards:
It will not dependent on rebuilding credit with secured and store cards and then you will trade up to unsecured major credit cards when you are improved enough to qualify you for those most favorable terms.
Answer for Your Real Question:
In order to say answer to the question that is there any way to get credit card with bad credit, poor credit card rating is more difficult one for applicants as there are more possibilities for rejection. The most important point to remember when you are given with a credit card is checking whether your latest payments history is shared with credit agencies. If you are applying for a credit card for the first time, there is always a possibility for you to not to have credit history. One can even get the Best Credit Cards For Bad Credit in 2016 without bank account in some of the banks. Add on card and secured card are the two best options. If you have a credit card of axis bank, then you can apply.
Applying for Credit Cards for Bad Credit is easy and quick process. There are some terms on credit card applications.
- Annual Fee:
It defines the yearly cost of owning a credit card. There are some people known as credit card borrowers who offer credit cards without annual fees and the fees defined the part of total cost of the card.
- Annual Percentage Rate:
It defines the yearly interest charge on outstanding credit card balances. APR will be lower for period of time and it will increase. You should ensure that when an APR rate will expire after you open your card.
- Cash Advance:
These are fees associated with cash advances which are assessed as a percentage of amount you withdraw.
- Credit Line:
It defines the maximum dollar amount which can be charged on a specific card account. If you leave a balance on your credit card, then it is very good to practice to keep the resolving balancing less to half the amount of your credit line.
- Credit Grade:
Your credit grade will be used to express individual’s status to get the credit. It is completely dependent on the information contained in your credit result at each of three credit bureaus. Credit grade will affect the ability to get the credit card and associated types of loans.
- Introductory Score:
Credit card providers will offer a low introductory Annual premium Rate as a special promotion. It is important to check the introductory period’s life, as your APR will rise to standard rate.
- Minimum Payment:
It is mandatory for you to pay the lowest amount of money towards your balance as mentioned on your credit card statement each month in order to keep account in good status.
- Comparison Shopping:
You can begin to compare different credit cards. The most important factors are your spending habits as well as your way of planning to pay your card each month. Most of the credit card companies will specify the particular section on their website which allows potential applicants to compare different cards.
- Business Credit cards:
If you use the card primarily for a small business, there are some credit cards with special features.
- Low Interest:
You should look for cards with lower APR.
- Travel Credit Cards:
Do not spend a large portion of time on travelling for business. You should consider a credit card which makes points on airline ticketing.
- Added Features:
As an incentive, many credit card companies offer benefits like price protection, extended product warranties, overdraft protection and more for using your card.
- Promotional Offers:
One should always look at promotional offers without schemes. Additional cash back, 0% balance transfers are types of promotional offers.
Things To Follow While Applying For Credit Cards:
- Lower Your Credit Usage Ration:
It is one of the best ways to prove your credit worthiness and it is showing even though you are trusted with your credit. When you apply for a card, you should ensure that you have racked a lot of debt on your previous cards. Even though if you are planning to pay off your debt at the end of month prior to your situation that you are supposed to pay your interest, lenders will count it as debt. A good time to apply, then, might be right after you have paid off your credit card.
- Set Your Views On Right Credit Cards:
As already mentioned or aforementioned that, your credit score gets ringed off every time you apply for a card. You should minimize your applications by showing your realistic applications about your qualifications.
When you apply for credit cards, you should look at all of these conditions to ensure whether you are safe or not. If you are completely thorough at the conditions on applying for credit card, then you can proceed. Credit card application should be done at the banks where poor credits are applicable. It is to ease the process of your credit card searching process easier.