A bad credit score can make it extremely difficult to get a credit card. Credit cards are given out to people who typically have a good credit score, which is an indicator of a healthy and regular repayment record. Credit score function over a range i.e. depending on your credit score range, your credit eligibility is considered to be excellent, good or bad. As per the FICO credit scores whose range is 300-850, a score in the range of 300 to 579 is considered a poor credit score.
While applying for loans or line of credits, the lender checks the credit score of the potential borrower along with certain other factors. If you were to apply for credit with a low credit score, chances are high that your application would be rejected.
While it is not impossible to get approved for a credit card with bad credit, the same either limits your access to credit lines or comes with a high cost in the form of exorbitant interest rates. If you are wondering how to get a credit card with a poor credit score, worry not. You can still tap into the benefits of a credit card by availing a secured credit card.
How can I get approved for a secured credit card with a bad credit score?
If you are trying to get approved for a credit card with a bad credit score, you need to decide what kind of card you want. First, you need to zero in on your objective - whether you want a credit card to reap the benefits of reward points on your purchase, or you want a credit source with low annual charges. Next, you have to check what kind of credit cards you are eligible for, given your poor credit score. It is best recommended to filter out your options as per your credit score and not waste time on such credit cards which do not fit your criteria.
ALSO READ: How to improve bad credit?
Can I apply for a secured credit card with a bad credit score?
You can apply for a secured credit card with a bad credit score. Secured cards were essentially introduced for people who are trying to get a credit card with bad credit. Secured credit cards can be availed by making a cash deposit as outlined by the credit card issuer. These cash deposits made against the issuance of the credit card act as collateral for the card issuer. Thus, if you are thinking about how to get a secured credit card with a bad credit rating, all you have to do is arrange for the required cash deposit. So, you can see that it is possible to get approved for a credit card with a bad credit score.
What is a secured card?
Secured credit cards are one of the best financial tools to rebuild your credit rating. As soon as you apply for a secured credit card with bad credit and get approved, you can start your credit-building process. The benefits of a secured credit card are the same as those of a standard credit card, just with the difference of an affordable but mandatory cash deposit.
How can I use my secured card to build bad credit?
To use your secured credit card to build a good credit score you can do a couple of things. You should make regular, timely payments, keep the monthly due payable amount low, and pay off the debt amount. Also, do not exhaust the credit limit.
Use your secured credit card to make smaller purchases and pay them off by their due date, consistently. The more consistent you are with your repayments, the quicker you will be able to build a good credit score.
MUST READ: How to Build Bad Credit fast?
Do secured cards require putting up a cash deposit?
Some secured cards require customers to put up a security deposit, which might be a matter of concern for many borrowers. However, you do not have to pay any deposit money if you get a secured credit card with bad credit from Zolve. Thus, Zolve Aspire Credit Builder Card is your best option in secured card for building bad credit.
Zolve Azpire Credit Builder Card: How Does it Help People with Bad Credit Score?
With the Azpire Credit Builder Card, you can enjoy these benefits:
- Zero Charges - When you apply for a secured credit card with bad credit with Zolve, you do not have to pay any late fees or interest fee
- Big Rewards - When you apply to Zolve to get a secured credit card with bad credit, you get rewarded. In addition, you can earn rewards by making purchases on your Azpire secured card.
How Does the Azpire Credit Builder Card Work?
- Decide your spending limit - When you apply for a credit card with bad credit history to Zolve, you simply have to load up money into your Zolve Azpire Account. Go ahead and start spending it on your Azpire card then. You can spend up to the amount you’ve deposited in your Zolve account
- Start shopping - Shop and enjoy the rewards that come along with your purchases. As you keep spending with your Azpire card, the amount gets deducted from your spending limit
- Clear your bill - Your outstanding monthly bill is the total amount that you spent on your purchases. Come the end of the month and all you’ve to do is to pay the bill with the balance in your Zolve account
- Credit History Reporting - Zolve reports your applicable purchases to the US credit reporting agencies. Remember that the credit bureaus take time for processing your reports. That means the changes in your payment history will reflect after some time
Let’s now move on to learn how to apply for the Zolve Credit Builder Card.
How to Apply for Secured Card with Zolve Aspire?
If you want to know how to get a credit card with fair credit, it helps to know that you can apply for a secured card. When you apply for a secured card, you are required to give a deposit in some cases. Even so, if you apply for the Zolve Aspire secured card, you do not have to put in any cash deposit. This means you can use the deposit money to make more purchases and earn rewards. When you make regular payments on your secured card, your credit report will be sent to the credit-scoring agencies. This way, you can build bad credit with a secured card.
Follow the steps given below to apply for a secured card with Zolve Azpire:
Step 1 - Sign in to Zolve with your email id and password.
Step 2 - Complete your application for Azpire Credit Builder Card. Upload the necessary requested documents. You will get access to a bank account and a credit builder card in 5 minutes.
Step 3 - As you get your credit builder card, take a selfie to activate the card.
Step 4 - Make transactions
Step 5 - Zolve will report your transactions to credit bureaus.
If you have been worried about how to apply for a secured credit card for people with bad credit, with Zolve Credit Builder Card, all you have to do is sign up and add money to your bank account. Whether you’re looking to repair your poor credit history or want to secure yourself financially, Zolve Azpire Card can help all along the way.
Now that you know you can apply for a credit card with a low credit score, you must also remember that building credit does not happen overnight. So, you have to be patient and consistently work towards your goal – a good credit score. It’s all worth the wait and effort.
Frequently Asked Questions
Can you obtain a credit card if your credit score is 550?
It might not be possible to get a credit card easily if your credit score is low. Even so, you can apply for a secured card or for a credit card at higher costs. Or, you can talk to your primary bank to apply for a credit card.
What is a secured credit card?
A secured card requires you to put up a security cash deposit. This deposit serves as your credit line. Your security deposit amount can be about $200 or more. Secured cards are meant for people who have a limited or no credit history. It helps them to develop a good credit record and apply for an unsecured card.
Will opening a retail credit card account help to boost my credit score?
YES, opening a retail card account can boost your credit score, however, retail store cards can help to do so only if you build credit responsibly. Besides being easy to open, they also offer good discounts and rewards on your purchases.
Can I fix my credit score with a secured credit card?
Secured credit cards allow you a way to rebuild your credit where you have to make a cash deposit in lieu of which you will be issued a credit card. After you get your secured credit card, you will have to ensure that you are making the payments in time. Failing to make timely payments will put you back in the same place and reduces your credit score even further. It is more like a pass to an opportunity to build your credit.
Are cash deposits mandatory to get a secured credit card?
In general, one has to make a cash deposit of $200 or more to get a secured credit card. However, with Zolve Azpire Credit Builder Card you don’t have to worry about cash deposits. You can get a credit card even without any cash deposits.