Getting past bad credit is doable if you’re patient and determined. Plenty of individuals have had less than perfect credit and were able to turn their situation around.
If you hope to improve the chances of getting approved for new credit cards with poor credit, there are ways to do that. We’ll talk about some of them in the following article.
1.Debt Consolidation Loans
Improving your credit score is the first thing to do if you want to increase your chances of getting approved for a new card. Getting a debt consolidation loan is one way to do that.
Debt consolidation loans for poor credit are one of the better options if you’re working to improve your score. You can roll multiple debts into a single loan. Typically, you can do this through a balance-transfer credit card or a personal loan. If you have bad credit, a credit card company is liable to turn you down, meaning you probably can’t do debt consolidation that way. In this case, a personal loan is a more realistic option.
FICO credit scores range from 300 to 850, with 850 being a perfect score. Bad credit means you have a FICO score of 300 to 579.
If you can find a bank or credit union to give you a personal loan, you’ll want one that has a better interest rate than what you’re currently paying your creditors. Assuming you can secure a loan, you’ll then pay off all your outstanding debts with the funds from the loan. Then, you’ll begin making payments on time and in full on the consolidation loan.
Once you’ve raised your score through consistent payments, you’re more likely to get accepted for a new credit card if you apply for one.
Let’s say you found a lending entity willing to let you consolidate your existing debt with them. You’re dutifully paying off that debt each month. At this point, you might feel eager to apply for new credit cards now.
If you know your credit score is climbing, but it’s still not great, hold off on applying for a new card. This is because every time you apply for a new card, the company will do a “hard pull” to check your credit rating. This temporarily lowers your score.
Instead, wait until you have a better credit score before applying for any new cards. If you jump the gun, all you’ll do is set yourself back.
3.Follow Up with Credit Card Companies
If you think your credit is in good enough condition, and you’re ready to apply for a new card, you can do so. However, the company still might turn you down.
If this happens, you are able to reach out to the company and ask why. They’re legally obligated to tell you why you weren’t approved, and that’s valuable information. If you find out your credit is still too low, you can get back to work trying to raise it.
However, you might also get turned down for a mundane reason, like a typo that made the company unable to verify your identity. If that happens, it should be easy enough to correct the problem.
Improving Your Credit Card Approval Rate is Possible
If you don’t have flawless credit, you can take steps to change that and make it more likely you’ll eventually get approved for new credit cards. You might consolidate your current debts, for instance.
Whatever you do, hold off on applying for new cards until you can improve your score. Also, follow up with credit card companies to which you apply if they turn you down. Whatever reason they have for rejecting you, you’ll want to know what steps you can take to alleviate the problem.