Was your application for a credit card rejected? Before you can get a credit card for bad credit, it is important to get some things right. Consider these as the golden rules because the implications can have far-reaching implications.
If your application was rejected, avoid applying for another one immediately
If you make very many applications at once, it will be captured on the credit report and pull the rating down. The main reason for rejection might be a bank error, incorrect details on the credit report, or applying the card intended for those with very high score. Many banks capture the details of the application and rejection when submitting the report to reference agencies.
Instead of rushing to apply again, the best thing is pulling your credit report and checking for errors and inconsistencies. Once all errors are corrected, and the report gives the right score, you can go ahead and apply for another card.
Use eligibility calculator to establish the right card to request
Can you tell whether the application will be accepted or rejected? The answer is yes. Many credit card providers provide eligibility calculators for self-assessment for getting every card. You only need to fill the form with the correct details and see the types of credit cards that you qualify for before making a formal application. If you find that a specific card requires a higher credit score, it might be a good idea to build it first before making a formal application.
Establish whether your objective can be achieved with the current cards
For people who are after new cards to lower the existing debts, it is important to check whether the objective can be achieved using the current cards. Consider adopting one of the top strategies for reducing debts such as debt ladder or snowball method that attack debts with zeal. Note that discipline is critical in addressing debts both in the old credit and even with new ones.
Make sure to work on improving your credit
One of the main things that pull down your credit score is late payment of credit. Many companies that advertise credit cards for bad credit target people with a specific score. Therefore, you should put all efforts to ensure that your score goes up. You should particularly focus on making payments to all your bills on time. Note that this should include all forms of credit including those that are not reported to credit reference bureaus because they will ultimately end there if a debt recovery firm is contracted.
Watch out for the APR of the credit card you are applying for
While the credit card companies might have advertised the APR for a particular card at 30.5%, there is a high possibility that people with poor credit will get a higher interest. This is a hidden catch that many rarely demystify. You must, therefore, ensure that the APR that the credit has been advertised for is what you get. However, if you use the cards right, the issue of interest does not arise at all.