Over the past couple of months, we’ve noticed a trend in the number of approvals for new credit cards… and unfortunately, it’s not good news. With the record job losses that came with recent efforts to slow the spread of COVID-19, we’ve also begun to see records of a different kind. Creditors are hesitant to issue new credit to both businesses and individuals. All types of loans, from homes to cars to businesses, as well as all types of credit, including credit cards, have been affected. So, how do you get a credit card these days, especially if your credit is less than stellar?
Truthfully, if you have less than perfect credit, you may have a real problem getting a new credit card right now. Not only are creditors holding back, but in some cases, they’ve essentially stopped lending money (or opening new accounts) altogether. And that’s across the board – from those of us with excellent credit to those of us with no credit. Why? Because the risk is now greater that they will not get paid back should something happen to your job.
So, how do you get credit these days? Well, to be honest, in order to get credit, you may have to be willing to offer something up as a sort of security against the loan. If you’re buying a home, expect the bank to be more insistent on the size of your down payment. If you’re getting a personal loan, you may have to allow the creditor to put a lien on your car. And if you’re getting a credit card, you may have to start with a secured card.
Times are tough. The country is in a recession. But you can still get credit – it just may not be as easy as it has been in the past.