Getting an Unsecured Credit Card When You Have Bad Credit
You say you want a credit card and no credit card company will give you one because you’ve got bad credit? Well, don’t worry, there are more options to getting a credit card than you think-even if you have bad credit.
An unsecured credit card is a card issued by the credit card company in which you don’t have to offer up any collateral, like your house, car or anything else you may have of value that can be seized by the credit card company if you default, or don’t pay on time or at all.
Your “collateral”, in effect, is your signature, or your name with the company that will be issuing you the card. But because you’ve got a bad credit record, they may require that you pay more than someone who has an excellent record, so don’t be surprised if they do.
The purpose behind that is that they want to help you use the credit card to rebuild credit; your credit card will in effect be a “bridge card”, in that it will help to connect you to ways you can build up your credit score and won’t spend the rest of your life mired in debt.
The company wants to see if they can trust you; they’re giving you a chance to prove yourself, to show that you are worthy of their future trust. Whether you will do that or not is up to you.
As a creditor with a delinquent record, you will have to give careful attenetion to how much you spend and that you don’t exceed your credit line, bringing yourself into deeper debt. Once you have gained the confidence of the lenders, maybe they’ll change their mind.
Maybe you’ll have a good credit rating again, maybe even excellent. Then in the future maybe you’ll be able to get money to buy that home or car you’ve been dreaming of-because you’ve got an excellent credit rating.
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