If you have a poor credit rating or simply none at all, you may be worried about building credit. However, there are some credit cards out there especially designed for you. All you need to do is research!
Credit Options for People with Low or No Credit. Credit cards are surprisingly easy to acquire, regardless of whether or not you have a good credit rating. There are always options available to you no matter what your credit history. Some credit cards even come directly through the mail with a card already fixed and you just have to call to confirm it. These credit cards are designed to help you build a credit history. However, if you are not careful, you could end up getting yourself into a lot of debt! It is incredibly easy to find these credit cards. A simple search on the internet will bring up dozens of companies offering their cards for poor credit ratings. The thing with these kinds of cards, however, is that they often have a higher interest rate than any other card. While this is not always the case, it is still good to make sure you shop around before applying for one. Often, the credit cards you are offered are also Gold or Platinum cards, so you really do have to be careful with what you use them for!
How to apply and what is required.
It is extremely easy to apply for a credit card. If you do a search online, you will literally find hundreds if not thousands, of websites offering credit cards to people with poor credit ratings. All you have to do then is visit the sites, then you just need to fill in a simple online form. All you really need to fill in are details about where you live, your social security number, your date of birth and other personal details. It is very rare that a credit card company for people with poor credit will want to see a credit report. However, even if they do, they often do not really take much notice of it. If applying online, it usually only takes a couple of minutes to find out if you are accepted. You may need to call somebody from the company or they may do it for you just to confirm that you have applied, etc. They also will usually go though more details with you to see if you further fit the bill for one of their credit cards. You can also apply through the mail since credit card offers are often sent in junk mail. With these, they usually include a short form or ask you to call a special number to apply. Overall, it really will not take long at all to do and you should have your new card within a week.
How Does A Credit Score Determine A Poor Credit Rating?
A credit score is usually between 300 and 850 with 600 to 700 classed as average. A higher score tells lenders that you are a trustworthy borrower and you are often more likely to get credit. A poor credit rating will be below 400 and this stops a lot of companies from giving you credit. However, there are companies set up especially for people with no credit history or poor credit history and those generally do not bother too much about it. Every time you forget to pay a bill on time or if you have outstanding debt, it goes on your credit rating. Points are taken off and as mentioned earlier, if it reaches below 400 it tells potential companies that you are unreliable and they might have problems with you paying any money back to them. Overall, if you do want a credit card and you have poor credit, it is not too much of a problem to get one. However, the interest rates are often higher and you really do have to watch that you pay the minimum each month when you spend with it. If you are not careful, you will end up with an even worse credit report than you had before. However, if you are sensible, it can help to build up your credit rating. You just have to shop around first and do your research in order to find the right card for you.
