10 Surefire Ways To Get A Credit Card When You Have Bad Credit

In today's economic climate, it's become nearly impossible to find a credit card issuer willing to cater to people with bad credit. Among the few financial institutions that do offer bad credit cards, many have tightened their qualification guidelines for approval.

Although it's easy to qualify for department store or gasoline credit cards when you have bad credit, a secured credit card is still one of the best ways to rebuild your credit. In order to qualify for a secured credit card, all you need to do is deposit money in a blocked bank account to guarantee the line of credit.

To literally guarantee your odds of obtaining a secured or bad credit card, you have to take proactive steps prior to submitting your application. Study each credit card application carefully. When you've finally narrowed your decision down to one or two particular bad credit card applications, it's time to take 10 important steps to ensure your application will be approved.

1) Repair Your Credit File

If you have a bad credit file, obtain copies of your credit report from all three credit reporting agencies and work on removing incorrect derogatory information before you apply for a card. This will increase your chances of obtaining a card, especially the easy qualifying department store or gasoline company ones. Review your debt to income ratio. Banks don't want to see you apply with high fixed monthly obligations exceeding 32-36% of your monthly income.

2) Apply With Banks Specializing In Bad Credit

Select secured credit cards from banks who aggressively market to individuals with bad credit. They want you as a customer and you're pretty much guaranteed to be approved. Another excellent way too find credit cards for people with bad credit is to ask family and friends who have been bombarded with offers of secured credit cards. You can also check with the financial institution where you bank and see if they offer a secured credit card.

3) Use the Same Name

Be sure to consistently use the same name on all your card applications. For example, don't use your middle name on one application and not another. Also pay attention to generations like Jr. and Sr.

4) Beware of Multiple Applications

Don't submit more than two to three simultaneous applications within a 2 week period. Multiple inquiries into your credit can lower your credit score and give banks the impression you're desperate because other financial institutions are denying you credit.

5) Apply for Easy Qualifying Cards

Take advantage of pre-approved department store, retail, and gasoline cards. They are easy to get and provide an excellent lift to your credit history. Be sure the bank reports your transactions and payments to your credit report. Being responsible with timely payments on these card will definitely earn you an opportunity to obtain an unsecured credit card within 6-12 months.

6) Honesty Pays Off

Be honest on your application about previous financial problems beyond your control. Most bad credit card issuers are willing to overlook a bad credit history if you can document extenuating circumstances such as medical illness or a job loss.

7) Make Sure Your Application is Complete

Accurately complete the entire application to the best of your ability. A good strategy for a professional looking application is to type it out. List down a checking or savings account. Banks prefer their applicants to have some kind of established relationship with a financial institution.

8) First Impressions Count

Present yourself as a responsible applicant with a promising career. While you don't want to lie on your application, don't minimize your job title if you can express it more professionally.

9) Diligence Pays Off

Don't give up if you are denied a credit card. Contact the credit card company and find out why you were denied a card. Then take efforts to correct the problem by contacting the credit bureaus. Find out from the bank what it would take for you to qualify for a bad credit card. Don't give up!

10) Timing is Everything
The best time to apply for a bad credit card is when your job situation has been stable for a while, you've lived at your present address for at least a year, and you haven't had many credit checks recently.

Even though your secured card options may be fewer today, you can almost guarantee the odds of your application being approved just by following these 10 important steps. Once you receive your new secured credit card, use it responsibly and watch your credit score improve.