If you have what they call “fair” credit, meaning that it’s not the best but it’s not really that bad either, then you should still have a variety of credit options available to you. You might get turned down for some of the more high-class credit cards and loan officers might look over your paperwork a little harder, but you’re not in that bad of a spot. The best thing that you can do is to try to find some really good interest rates and submit your application. You might not get the card or credit line, but there’s still a pretty good chance that you will. The interest rate might be adjusted a little bit, meaning that you’ll have to pay a little more than the initial rate that you applied for, but it still shouldn’t be too bad. Make regular payments and try to always pay more than the minimum amount… this will help to keep your balance low, which will help you to improve your credit score. If your score improves to the point where you can get a better rate elsewhere, then take it. Transfer your balance over to the new credit line or card, and then either keep your old line open for emergencies or request that it be closed down. (A credit line that’s closed at the customer’s request looks a lot better on a credit report than one that’s closed by the creditor.)
Poor or Bad Credit
Of course, if you have poor or bad credit then your options may be a bit more limited. You might want to consider opening a checking account and getting a check card or debit card (which draws funds from your checking account instead of being a credit line.) Depending upon your credit rating, though, you might find yourself having trouble even opening a checking account… if that’s the case, you might want to consider getting a prepaid credit card. These cards allow you to “charge” them, or put money onto them, and then can be used wherever the card could normally be used. They come in a variety of different styles and can either be single-charge or rechargeable; the rechargeable cards would probably be your best bet. You also might use an internet credit card search to find other cards that you can apply for. Usually these cards will charge high interest rates and monthly fees, as well as having most of the credit of the card charged full of processing fees when it’s issued… you have to pay the fees down before you can use the card for much. This ensures the company that you’re going to make payments before you start charging everything, and is one way that many of the cards are able to be issued to people with bad credit. You also might look into getting a secured card, which either requires a deposit or an account be opened with the issuing bank; it still costs money, but it’s not money paid toward fees. The deposit simply makes sure that the bank has the money on hand for any charges you might make, just in case you don’t pay it off.