Credit can be very difficult for some applicants to receive, especially those with a poor credit rating. Their poor credit rating may not be due to any fault of their own; there may have been a job loss, a divorce, or an unexpected emergency requiring money that could not be repaid. Whatever the reason, poor credit makes it difficult to get a credit card. However there are ways around this and credit cards for those with poor credit scores are available.
When the economy is secure and credit conditions are lax, credit card companies will extend standard credit cards even to people with relatively poor credit records. In short, it can be easy to get a credit card when it’s not needed, but it can be far harder to get the credit card when it’s necessary.
When credit is tight, the credit cards offered to people with poor credit ratings tend to carry higher interest rates, more stringent conditions, higher fees, and lower credit limits than standard credit cards. But there are a number of credit cards that can get around this problem.
Co-signatory credit cards require the signatures of two people. The first is the main card holder, in this instance the person with a poor credit rating, who carries and uses the card as normal and will be expected to repay the bill on time each month. The second person, or co-signatory, is someone with a better credit rating who also agrees to be held responsible for the credit card debt. This arrangement allows for a higher credit limit and a lower interest rate. However the main card holder should be aware that the co-signatory will be sent a copy of the credit card statement and they decide how high the credit limit will be.
Secured credit cards are another form of credit card available for people with poor credit. However, they are generally open only to people who have some money or property against which the credit card can be secured. These cards tend to attract high fees.
Pre-paid credit cards are another option. Unlike the other types mentioned, these cards do not generally help a person rebuild their credit ratings. However, they do provide the flexibility for credit card spending over the internet and by the phone, as well as the convenience of not carrying cash everywhere.
