Updated 4:12 PM PST, Mon April 28, 2014

Bad Credit? How To Get A Credit Card

Your FICO credit rating determines your qualifications to borrow cash through charge cards, lines of credit and loans. Your credit is regarded as being fair or poor if you've got a credit rating below 600. With an undesirable credit rating, you might find it tough be eligible for charge cards and loans. Yet, corporations understand it is hard for you yourself to reconstruct your credit rating without creating timely repayments on them and having accessibility to charge cards and loans. Because of this, despite having bad credit, there are many avenues to getting a credit card.

There are two different types of credit: secure and unsecure. Secure loans mean that there is some sort of security that the lender has over the borrower (such as a car, in an Auto Title Loan). Unsecure credit, also called security, is when the lender guarantees a certain amount at, with little risk. Credit Cards are these types of security.

Because of your credit rating, when a card company decides to take you on, it is likely that you will have a higher interest rate than average. After making a few months of on-time payments, simply call up the card company and request a lower interest rate. Once you’ve proven that you can pay it on-time, they are more likely to be willing to work with you.

So why is getting a credit card, while still having bad credit helpful? First, it lets you make purchases that simply take cards. That is especially useful should you not need a check card. Second, it enables you to reconstruct your credit-which paying with cash, will not. Third, it lets you create a connection with the credit card supplier. When you make timely repayments in your secured card, increase your personal credit line beyond the guaranteed sum and your supplier may determine to trust you more.