How to get a credit card with bad credit gas and water mix

Retail stores have a reputation for approving applicants who have bad credit. You have a better chance getting approved for a limited purpose credit card that can only be used at that store rather than a credit card backed by Visa or MasterCard. Be aware that retail store credit cards come with low credit limits and high interest rates. The best way to manage a card like this is to only charge a small amount and to pay your balance in full each month. Be Willing to Pay a Deposit

Too many borrowers dismiss secured credit cards because the cards require a security deposit to be made against the credit limit. A secured credit card that reports to the major bureaus is better than having no credit card at all. Many secured credit cards can be converted to unsecured credit cards after a year of on-time payments.

If it’s the security deposit that’s keeping you from getting a secured credit card, start putting $50 in a savings account each month. In six months, you’ll have $300 to put toward a credit secured credit card. Some of the money can be used to take care of the application fee and the rest can be put toward your credit card balance.

The Capital One Secured MasterCard accepts a security deposit as low as $49 or $99 for a $200 credit limit depending on your credit credit. If you have extremely bad credit, you’ll have to pay the entire minimum $200 security deposit, but you can come up with that in four months by saving $50 a month.

Be willing to make the sacrifice to meet the goal of improving your credit. As long as you are responsible with your payments and do not default on the balance, your deposit will be returned to you. Don’t Waste Time on Credit Cards for Good or Excellent Credit

You can typically tell a credit card is aimed for someone with excellent credit by the benefits it provides. Credit cards with excellent rewards, low APRs, and promotional interest rates are almost always aimed at consumers with excellent credit. Applicants with poor credit scores are usually denied. What to Watch Out For

Beware of fee harvester, or subprime credit cards, that charge high upfront fees which take up up most of your credit limit. Though Federal law limits the amount of fees to 25% of the credit limit, at least one subprime credit card issuer has gotten around the law by assessing a $90 fee before the credit card is ever issued. Credit cards issued by First Premier and Credit One banks are examples of credit cards to stay away from.

Prepaid cards are often advertised as an option for people with bad credit, but these aren’t really credit cards. Prepaid cards require you to make a deposit before you can use it to make purchases. But unlike secured credit cards, your prepaid card purchases are deducted from your balance. Prepaid cards don’t improve your credit either, because they don’t report to the major credit bureaus. (They can’t since they’re not a credit product.) The Bad Credit Card Isn’t Forever

Credit cards for people with bad credit don’t have the most attractive credit card terms. Annual fees, high interest rates, low credit limits, and sometimes poor customer service are among the features you’ll have to deal with, but just for a short time. Don’t expect this temporary credit card situation to be perfect. Your goal is to pay your bill on time and improve your credit so you can qualify for something better, which can be done in about 12 to 18 months if you’re responsible with your credit.