If you have struggled with your finances in the past, taking out a bad credit credit card can help you to build your credit rating. It can also help you spread the cost of large purchases.
These cards are available from a number of lenders but do tend to carry higher charges. You are also likely to be offered a lower credit limit than on a traditional credit card. You also need to think about how you will manage your money, so that you don't end up in debt again that you cannot repay. Make sure you have a plan in place to repay before you apply for a bad credit credit card. Find out how to compare balance transfer credit cards.
If you have never had a credit card before and can't show a history of paying bills in your own name, you may not be approved for a new card. Likewise, if you have had a problem with credit in the past, have been in debt you could not repay, or you have been refused credit, then you may also be turned down for a new application for a credit card. One option to consider if you fall into one of these categories is a credit builder card. It will come with higher charges and a lower credit limit than mainstream cards, but if you use it wisely you could start to rebuild your credit rating.
Read our Uswitch guide on How to improve your credit score and credit rating. Credit card providers don't like taking risks. When you start using a credit card, make sure you make payments on time.
This will then go towards building a positive credit rating. In time, you will become more likely to be approved for more mainstream credit cards. Find out How to build credit without a credit card. If your income is low or fluctuating then you may be able to apply for a balance transfer credit card. They are less likely to accept people who do not have fixed employment. Find out more about Balance Transfer Cards with our Uswitch guide. Ultimately, having some form of regular income is the best way to improve your chances for credit card approval.
But there are options for those who aren't in employment right now, and those with changing circumstances and bad credit histories. If you're in desperate need of credit then you may be better off speaking to your local credit union , which can sometimes provide better rates than the banks and credit card companies.
If you're struggling with your finances, you can talk to your credit card or mortgage company and ask for a payment holiday while you get back on track. If you have missed any payments - this could have made a mark on your credit report and make you look unreliable to a potential lender. This could be anything from a loan or credit card repayment, mobile phone contract or missing a mortgage payment.
You have a lot of potential credit — a lender will also take into account how many bank accounts you have and how much debt you currently hold or credit you could use. You may also be victim of not even having a credit history - good or bad or of identity fraud. Many young people struggle to get their first credit card as lenders do not have a financial history to compare. If you have never owned a credit card before, read our guide to your First Credit card to find out the best way to build your credit rating and use credit wisely.
We use cookies and similar technologies. You can use the settings below to accept all cookies which we recommend to give you the best experience or to enable specific categories of cookies as explained below.
Find out more by reading our Cookie Policy. While you are not legally obligated to pay any balances on the credit card, you will likely have an agreement with the primary cardholder about how payments need to be made. You should also ensure that the primary cardholder is responsible about making payments on the account in full and on time.
If you know someone who has a good credit score and steady income, you could ask them to act as a co-signer for you. A co-signer essentially uses their own creditworthiness to help you obtain a credit card. You will be the primary cardholder and responsible for making all payments on the card. If this is an option you are thinking about, make sure that you have a clear agreement with your co-signer beforehand.
Secured credit cards can be easier to get than unsecured credit cards because they require a deposit, which acts as your credit limit. Your credit score and your income may be less influential factors than they are for most cards; instead, your ability to guarantee the required deposit is essential. If you do decide to go this route, look for a card with low fees and read the terms carefully. You should also ensure that your payments are reported to the credit bureaus so you can continue building good credit.
You may also choose to apply for a joint credit card account with someone, such as your spouse. With a joint account, both potential cardholders apply and undergo a credit check. However, income is considered jointly. The primary downside to opening a joint account is that your options are much more limited: few credit card companies offer joint accounts.
While both parties share the responsibility of making payments, both parties will also take the blow for any missed payments. Unemployment can present some scary financial uncertainties. However, there are tools out there that can help make ends meet until you find employment again. How We Make Money. Raychelle Heath. Written by. Share this page. Bankrate Logo Why you can trust Bankrate. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options.
Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you.
Bankrate Logo Editorial Integrity. Key Principles We value your trust. Bankrate Logo Insurance Disclosure. If you have money in savings you can tap or a loved one willing to give you a loan until you get a new job, those may be better options.
Here are some kinds of cards you may want to consider first:. Keep in mind that you still need to make at least the minimum monthly payment. But if you need one to pay for essentials, explore low-interest options and make sure you can pay at least the minimum monthly payment until you find a new job.
Unemployment doesn't have to be a barrier to credit card approval if you have good credit and a source of income you can use to pay the bills. But whether you're unemployed or you have a job, use your credit card wisely. Don't charge more than you can afford, and aim to pay your bill in full every month to avoid interest.
If that's not realistic given your employment situation, resolve to pay off your balance as soon as you get back on your feet. Find the best card for your credit. Check your score anytime, and NerdWallet will show you which credit cards make the most sense. Listing income on your application. Apply for a secured credit card. Recruit a co-signer with a good credit score and steady income. Nerdy tip: In recent years, several so-called "alternative credit cards" have come to market, advertising nontraditional underwriting policies to assess creditworthiness aside from evaluating FICO scores alone.
While these cards may be good options for those with limited or no credit, you'll still have to meet income requirements, as you would with traditional credit card issuers.
You can get a credit card while unemployed, but is it a good idea? Bottom line.
0コメント