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.

2.Be Patient

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.

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Most adults have credit cards because it’s much easier to get through life with one than without one. If you have a credit card, you’ll notice that it has a spending limit.

A time might come when you want higher limits on your credit cards than you currently have. Maybe you plan to buy some more expensive items, and the only way to do that with a credit card is to get a limit increase. We’ll talk about three ways you can increase your credit card limit in this article.

Before we get into how you can increase your credit card spending limit, though, we should mention that if you have several outstanding debts you can’t easily pay, it’s not the best time to take this action. You should prioritize paying off debt before you try to increase your credit limit.

1. Request a Higher Limit Online

Now, on to the first method that can increase your credit card limit. You can ask for a limit increase online. You’ll contact the credit card issuer by signing into your account and looking for an option to submit the request.

For the card issuer to say yes, you may have to update your income information. The credit card company will probably look at your payment history when determining whether to increase your limit, but they will also want to know how much money you currently make. 

A higher income likely means more financial security, and the credit card company will recognize this. If your income is stagnant, the card issuer might turn you down. Still, it never hurts to ask.

2. Look For Automatic Increases

Most credit card companies will start you off with a specific credit limit when you sign up for an account. If you show you’re dependable by paying off your card every month, the company may extend your credit limit automatically after a year or two have passed.

If you want to know whether a card company will do this, you’ll probably need to go on their website and look over the fine print to see if they mention this policy somewhere.

If you don’t see automatic increases mentioned anywhere on their website or app, you might have to contact them directly to ask about it. Waiting for an automatic increase is the most passive way of getting a higher credit card limit.

3. Call Your Card Issuer

If you’d prefer not to wait for an automatic increase and don’t want to reach out through the company’s website, calling the card issuer is a third option. You can find a help number to call on the card issuer’s website or app. 

Once you navigate the menu, you should be able to talk to a live operator. You can explain the situation and request a card limit increase. The representative you speak to might ask you why you want to increase your limit, so be ready for that. They might inquire about the state of your finances as well, such as whether your income has gone up recently.

The person you speak to might not grant you an increase at that moment, but they will probably get back to you via email soon afterward, letting you know the company’s decision.

Increasing Your Card Limit is Beneficial

You may need to increase your credit limit because you’re going to use your card for an expensive purchase. However, getting an increase can also improve your credit score. That’s because having more available credit but using less of it means your credit utilization amount is lower. That’s a critical factor in determining your FICO score.

If you’re ready for a credit card limit increase, try contacting the company by phone or using their website. If you want to try a more passive approach, you can also wait to see if the company automatically raises your limit.

With a higher credit card limit, you’ll have more buying power, and your credit rating should improve as well. 

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Your go-to source for the latest in tech, finance, health, and entertainment, with a knack for distilling complex topics into accessible insights, We deliver timely updates on the ever-evolving landscapes of technology, finance, health, and entertainment