If you are looking to apply for credit cards but have bad credit, you need to be careful about the type of card you choose. The best option may be a secured credit card. These cards can help you rebuild your credit and pay down your debt.
What credit cards can I get with 500 score?
Secured credit cards require a security deposit. The security deposit acts as a credit limit when you open an account. This reduces your risk and prevents the issuer from taking your money if you default.
Unsecured credit card application for bad credit don’t have the security deposit requirement. However, they tend to have high fees and higher interest rates.
You should always keep your credit utilization ratio under 30%. A higher credit utilization ratio will make it harder to pay off your debt. It is also important to make all your payments on time.
You can get a credit report for free. Request it from one of the major credit bureaus by calling or mailing it. Once you have the information, dispute any inaccurate items on your report.
Credit card applications usually ask for income and address. They also usually include your Social Security number. Some cards even let you check for prequalification online.
When applying for a credit card, you should consider the credit limits, fees, and annual fees. Look for a card with a low minimum rate. Also, you should try to find one that allows you to increase your limit as you need it.