When applying for a credit card, you will have your credit score checked by the lender.
Your credit score is a rating that depends on how reliable you have been with credit, debt, and loans in the past. The higher your score, the more likely you are to be approved for a credit card with lower interest.
However, for people with poor credit histories, many credit cards can be out of reach. Fortunately, there are other options and there are some credit cards that are easier to get.
There are some cards that do not require a high credit score for approval. While this does mean you may not get a credit card with the best interest rates and terms, you will still have access to credit.
There are plenty of options for credit cards for those with a low credit score. Some cards are designed specifically for people who currently have a low credit score and want to improve it. They often come with higher rates of interest and a lower borrowing limit, but careful spenders are rewarded with an improved credit score two or three times each year.
Credit-builder cards are usually way to be approved for, even with a low credit score. They are specifically designed to help you improve. Credit-builder cards give you an opportunity to prove to the credit agencies managing your credit score that you can handle credit cards and be responsible for paying them back. You can demonstrate that you are responsible with credit by spending a low amount and paying the card off in full each month.
Young people have not had a chance to prove that they can be responsible with credit and will not have much of a credit score when they turn 18. In this case, student credit cards are an excellent way to prove that you can manage credit and teach yourself how to be responsible with borrowing.
The best way to increase your credit score, and therefore your chance of being approved for a credit card, is to show that you can be responsible with money and that you are a low risk to any potential lenders. In addition to your credit score, there are some other things you can do to improve your chances.
Register to vote: Joining the electoral roll will help to confirm your identity to credit agencies. It also makes it far less likely that your identity is being used for fraudulent purposes.
Regular income: A steady monthly income signifies that you will be able to meet the repayments for the money you borrow.
Pay your bills: Unpaid bills are an indication that you can’t manage money well and are a huge mark against you when it comes to getting credit. For a better chance of getting a credit card, it is important to keep on top of all your bills.
Pay outstanding debt: If you currently have debts ensure that you are either meeting or exceeding your minimum monthly repayments. Failure to do so will make it look like you can’t handle money.
Don’t apply for too many cards: applying for a lot of loans or credit cards are the same time will likely harm your credit rating, especially if you are rejected. It is best that you only apply for credit cards that you are certain you will be approved for.
There are no credit cards offered that you could get without having a credit check. However, if you are finding it difficult to get a credit card or open a bank account but want to build your credit rating there are other options, such as a prepaid card.
Prepaid Cards allow you access to a card, but with a hard cap on what you spend. Like a pay-as-you-go mobile phone, with a prepaid card or prepaid debit card, you load money to the card and top them up when they run out. Prepaid cards can be used to shop online or in stores, and you can use them the same way you would a credit or debit card.
If you are struggling with debt, you can get free impartial debt advice from places such as Citizens Advice and National Debtline.