What credit cards are available when you have a low credit score?Friday, June 29, 2012 at 6:53:32 PM
If you have seen your credit rating take a bit of a tumble in the last few years, you probably know it's not easy to get a new credit card. But these days, credit card programs targeted at subprime borrowers are making it easier to get your credit card application approved, even if you have less than sterling credit.
Data from the credit monitoring bureau Equifax shows the
issuing of new lines of credit to subprime borrowers has expanded significantly in the last year and a half, according to a report from MarketWatch. In all, the issuing of new credit card offers to subprime borrowers increased 41 percent last year, with December's rate being the highest level observed in four years. Further, the issuing of new credit cards to consumers with subprime credit ratings rose 21 percent on an annual basis in the first quarter of this year, the largest such increase seen since 2008.
Credit limits on these cards are rising as well, and now average about $1,500.
Can you take advantage?
Depending upon your personal credit rating, you may be able to qualify for a new credit card, but you to increase your chances your should try to make sure that you apply for a credit card that fits your specific financial situation. Oftentimes, lenders reduce their risk in issuing new accounts to subprime borrowers by
increasing the prices they pay for their interest rates or annual fees.
What if you can't qualify?
Sometimes, you might find that the credit card programs you're seeking aren't available to those with a low credit score, and you'll have to seek out a more appropriate type of credit card offer. This might include secured credit cards, which require you to make a down payment of a few hundred dollars that will serve to establish your credit limit.
As with other accounts for subprime borrowers, you will likely face higher rates and fees on this card, but it will not require a credit check to determine whether you qualify. However, you should think of this kind of card largely as "training wheels" as you attempt to rebuild your standing to the point where you can qualify for new, better offers.
Whenever you're looking for a new credit card,
you will have a better chance of finding the best credit card deals available to you if you use online tools rather pouring through dozens of credit card offers by hand. At CreditCardApplications.com we provide automated tools to help match you to the perfect credit card for your individual needs. Among those tools is our credit card search engine: just enter a few pieces of information about yourself, and in seconds you'll be presented with a list of the credit cards most likely to meet your specific needs. We also have a page dedicated to credit cards for those with poor credit.
We also provide tools to enable you to quickly find the card that best meets your needs. Finally, our online credit card application process makes the submission and approval of your application fast and easy.