Have you tried applying for credit and your application was declined? Or are you trying to build your credit and not sure what to do first?
It can be devastating for some people to see all the credit available and when they apply, they are declined. I had a few clients that told me before they applied to The First Progress Platinum MasterCard, they applied to several credit cards and was declined. A few already had good credit and others credit was so jacked up that they received a pre-declined letter in the mail before they could even apply.
If you have bad credit, you might think that it is impossible for you to obtain a credit card. It isn’t impossible. I will tell you how to apply and get approved. But before we start, let us talk basics.
Why would I want a credit card?
First, they are helpful in emergencies. For example, if you should get stranded by the side of the road with car trouble, a credit card can get you a tow truck. Having a credit card with bad credit can also help get you back on the road toward good credit provided you use it wisely.
How do I use a credit card?
A credit card should be used to try and rebuild your credit rather than to go on a shopping spree at the local Wal-Mart.
How do I apply for a credit card?
It is simple and easy, too easy to apply for a credit card online. But getting approved for a credit card for some is a problem. That is why I am writing this to help you plan before applying.
1. Know your score
Whenever you are trying to apply for anything with your credit, you always want to know your score Some lenders require a certain score for your application to be approved. For example, you may have fair credit and the card you are interested in says excellent credit. You do not want to apply for that card, because you do not qualify and will be denied. Knowing where you stand will help you in deciding on which card you qualify for and lessen the number of unnecessary inquiries you may have on your credit report, Some personal finance websites that offer a free credit score from VantageScore are: Credit Karma, Credit Sesame, and Nerd Wallet. VantageScores and FICO scores are similar but they do differ. They both use the same factors and extract the same data from the credit bureaus, they both have a score range of 300 to 850, but they differ as to which ranges are considered poor, fair, good, or excellent. See the example of the scores below.
2. Decide which card you need
75% of all American adults have at least one card, according to the Federal Reserve Bank.
If it is your first time applying for a credit card, or if your credit score is poor, you may want to apply for a secured card.
A secured credit card can prevent you from getting into credit problems and still show that you can be responsible with a credit card plus give you the peace of mind you need in the event of an emergency.
With a secured credit card, you deposit a certain amount of money into an account that is tied to that card. You can then use your card just like you would a regular credit card. The good part about a secured credit card is that once you’ve reached the amount of that deposit, you can’t use the card anymore until you deposit more money. For example, you deposit $200 to your secured credit card, you only have $200 available credit.
A secured credit card is a great way to start building your credit when you have a poor credit history.
Another idea would be to apply to unsecured cards that offer low or no annual fees and a low-interest rate. If you cannot get approved with an unsecured card, you can try a retail store credit card. Many department stores will offer you credit even if your credit isn’t the best. Of course, the big thing here is to make your payments on time and don’t overextend your credit. It’s credit suicide to get a card, charge too much on it, and then miss payments or be late on payments. Be careful if you do get a credit card, it's too easy to fall behind. Use your card responsibly.
3. Where to apply
You can apply to many different places. If you already have a checking or savings account at a bank or credit union, you can start there. Even though you are depositing the money into the account to be used as credit, you still must be approved by the bank. Do your research and remember to check the minimum/maximum amount you can deposit, the APR rate, if there are any fees if you pay late, or would like to transfer your balance, and which credit bureaus the bank reports to. As a perk, some banks allow you to be refunded your deposit if you pay on time, so check to see if the deposit refund is offered and how you can qualify.
Another option is, The First Progress Platinum MasterCard® Secured Credit Card is a full-feature Platinum MasterCard® with a credit line based on a security deposit rather than on a credit score. You post a security deposit to establish your credit line and that deposit serves as collateral for your obligations on the secured credit card account. The card is designed to advance the accumulation of new information in a credit file by reporting account activity to all three of the major national credit bureaus every month. And because it’s a full-feature Platinum MasterCard®, the card provides the protection, convenience, and prestige of the worldwide MasterCard® system. Click on the link here to choose the
The First Progress Platinum MasterCard, where everyone is accepted, you get approved fast, and there is no credit history or minimum credit score required for approval.
Some online sites and banks allow you to see if you pre-qualify before you apply. This would be a soft pull on your credit report, which doesn’t affect your scores until you accept the approval offer. This could help you limit the number of inquiries you may get when applying. Check to see if you pre-qualify before you apply. If you do not pre-qualify first, when you apply you will have a hard inquiry. This could lower your credit score by a few points and may stay on your report for up to 2 years.
Ultimately, when you get a new credit card, whether you have good credit, poor credit, or no credit you want to use it responsibly. Pay your bills on time, if you can, and start budgeting to save money.
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