Posts tagged: unsecured bad credit card

Unsecured Credit Cards for Bad Credit – Do They Exist?

Few individuals realize how important maintaining an excellent credit rating is until it is simply too late. Consumers can fall into the bad credit category for a variety of different reasons, but what’s important is that it is entirely possible to start new relationships with lenders and rebuild one’s history in the process. Revolving lines are perhaps the most difficult to obtain, but there are companies that offer unsecured credit cards for bad credit individuals. There are several things a wise consumer can do to increase the chance of being approved for such an account.

An individual should be well aware of any negative items that are present on their credit report. There are many cases in which mistakes have severely impacted a person’s credit score. If any errors are found in any part of the credit history, they can usually be cleared up fairly easily by disputing the incorrect information with each of the three credit bureaus. It may take awhile to correct such information, so it is strongly advised to repair any problems as quickly as possible and definitely before applying for any new accounts.

Many consumers have excellent pay histories on bills such as rent and utilities. However, contrary to popular belief these accounts do not report to the credit bureaus unless there have been severe delinquencies. Individuals can request a letter of reference from their landlords or their utility companies and this letter should include a brief summary of the pay history. A letter of reference normally must be requested in person, but they typically are provided free of charge. Being able to show a good pay history on regular monthly bills can help a person illustrate their reliability and responsibility.

Honesty is highly regarded by most companies and it is imperative that any applications are filled out truthfully. Individuals that exaggerate income or alter employment history are not only less likely to be approved, but they also could face criminal charges if caught. There often is an opportunity to explain past due balances and previous delinquencies, and a person should take full advantage of the chance to build their case.

There are plenty of lenders who offer bad credit unsecured credit cards, but there is a chance that a consumer will still have a difficult time securing such an account. An individual has a much better chance of being approved if they follow the above best practices. If you find you’re not able to get the credit card you want, other financing – like instant decision unsecured personal loans – may be your only option. Credit cards are not inherently evil and can be a valuable tool for daily money management and financial planning. However, a person should be well aware of their spending habits and level of responsibility. There are many companies willing to give second chances, but very few will offer third chances.