Can’t Get a Credit Card?

If you’ve had a serious financial setback, it can really hurt your credit score… even to the point that you may not be able to get a conventional credit card.  And if that’s the case, it can be very difficult to get your credit back on track.

First and foremost, you’ll want to try and clear up the worst of the mess you’ve made of your credit score.  Pay off as many of your delinquent accounts as possible, dispute any errors that you find on your credit report, and start trying to rebuild your credit as soon as you can.  But, how can you rebuild your credit if no one will give you an actual credit card?

Actually, there are a couple of good, solid options when you can’t get a conventional credit card –

 

Apply for a catalog shopping card, such as a Fingerhut Credit Account issued by WebBank . Catalog cards, and Fingerhut in particular, make it their business to work with customers who may not be able to get credit anywhere else. And even if you aren’t approved for a regular Fingerhut account, you may still qualify for their “fresh start” credit program, which would require you to put down a small deposit with your first order.  Either way, with Fingerhut, you’ll be able to shop from among hundreds of thousands of reasonably priced, name brand products, with competitive pricing, and an interest rate that is inline with other catalog shopping sites.  Plus, Fingerhut reports your responsible purchase and payment history to the major credit bureaus, so you can improve your credit score and still have the purchasing power you need.  From personal experience, I’ve seen what opening a Fingerhut credit account can do to help you improve your credit score, and I highly recommend this option.

 

Get a secured credit card.  Getting a secured credit card is the guaranteed way to have a credit card, even though it’s not exactly a conventional credit card.  With a secured credit card, you’ll have to deposit money up front, and then the credit card provider will issue you a credit card with a credit limit that is typically equal to the amount of your security deposit.  You’ll then use the credit card just like a conventional card, making payments towards any purchases you make, and they, in turn, will report your responsible use and good payment history to the major credit bureaus.  Most secured cards have a very reasonable interest rate and many even convert to a conventional credit card after a certain period of time.

 

Either way that you choose to go, or perhaps both ways if you have the ability to do so, you will see the improvement that you need to see in your credit score as long as you demonstrate responsible usage of the credit that you get.  Just remember, it takes time and determination to get back on track once you’ve had financial problems, but it can and it must be done!

Will a Secured Credit Card Really Help My Credit Score?

Will a secured credit card really help my credit score?

Believe it or not, that’s one of the most asked questions that we get here at the Easiest Credit Card to Get, and believe it or not, the correct answer is a resounding YES.  You see, secured credit cards work just like true credit cards in that you have a credit limit, you make payments, and you actually pay interest with most secured credit cards.  And, just like a true credit card, the secured credit card company reports all of those things to the credit bureaus on a monthly basis.  The only real difference between the two is that, with a secured credit card, you have put down a deposit that is typically equal to your credit limit.

So, how does a secured card help your credit?

Well, as I mentioned, the credit card company reports both your credit limit and your regular payments to the credit bureaus.  This, in turn, helps you to build a solid payment history AND proves that you have available credit.  These are the two most important factors in your credit score.  The TWO most important.  Everything else counts for bits and pieces – these two items are right at 30% of your score EACH.  So, if your credit score is bad – the fastest and easiest way to improve on your credit score it to work on these two things.  And the easiest way to do that is to get a credit card.

But, if your credit score is bad, no one will give you a credit card, right?

How many times have you been turned down for a credit card because your credit score is too low?  If you’re like a lot of people – too many!  But wait, that’s the beauty of the secured credit card – you won’t be turned down!  That’s right, you won’t be turned down for this credit card because you are securing it with your cash.  And the bigger the deposit, the bigger your credit limit.  Want to increase your credit limit?  Increase your deposit!  Want to cancel the card?  As long as the balance is paid off, you’ll get your whole deposit back!

So, how is a secured credit card different from a prepaid card?

You have to put money on both, right?  Right.  But the real difference is in the details… prepaid cards do not, for the most part, do any reporting to the credit bureaus.  They’re not really designed to be used as you would use a credit card, and as such, a prepaid card won’t do anything for your credit score.  Secured credit cards, on the other hand, were designed to function just like a true credit card,  and like having a true credit card, a secured credit card will affect your credit score.

So, if you really want to improve your credit, then get yourself a secured credit card, use it wisely, and watch your score start to go up!