Requirements For Credit Cards For Bad Credit: Simple Steps to Get Approved

Getting a credit card when our credit history isn’t great can be tough. Companies that give these cards have rules they follow. They want to make sure we can pay back what we borrow. Sometimes, even the law makes them check things first. 

Whether we are looking at cards that need a cash deposit or those that don’t, there are some things we should know to prepare ourselves.

When we are ready to apply, it’s important to have the right information. This includes things like our ID number, where we live, and our money details. 

Having a stable account and a history that shows we pay back money without problems helps too. It’s all part of getting the credit we need.

Key Takeaways

• Personal information is crucial for credit card applications.
• Financial records and history matter for approval.
• Credit cards for bad credit require meeting specific standards.

An Identification Number, an Address, and Other Personal Information

When we apply for a credit card in the U.S., we need to provide some key personal details. These details help the issuer know exactly who we are. 

Thanks to certain laws aimed at fighting bad things like terrorism and money-laundering, we have to share information like our name, where we live, and when we were born.

For most of us, sharing this information is pretty simple. But if someone is new to the country, filling in a Social Security number might be tough. 

In that case, we can use an Individual Taxpayer Identification Number (ITIN) instead. Without these details or if we’re under 18, we risk getting our application rejected.

Earnings

In order to get a credit card in the U.S., we need to show that we can pay it back. This idea comes from the Credit Card Act of 2009. 

Credit card companies will definitely ask us about the money we earn each year. If we’re over 21, we can use any money we expect to have access to, including what our partner earns.

For most secured credit cards, there aren’t strict income rules. Yet, they might look at how much we owe and what we spend on living every month. 

The Capital One Platinum Secured Credit Card, for example, needs us to have $425 more in income each month than what we pay for rent or our mortgage.

When it comes to unsecured credit cards from big-name companies, we might have to earn a minimum amount each year, like $10,000 or $12,000. 

If our earnings are too low or if we’re in a lot of debt, our application could get declined.

A Deposit for Security

We all know that secured credit cards need a cash deposit upfront. These deposits usually start at around $200 or $300, and this amount becomes our credit limit. 

If we put down $300, that’s exactly how much we can spend. If we keep up with payments, we can either get our deposit back or switch to an unsecured card.

Here’s what happens if we miss payments:

• The issuer keeps our deposit.
• We might face some credit score consequences.

But there are ways to make it work for us. It’s a smart move to save up for a card with a lower deposit if cash is tight. 

There are even options for cards tailored to those with less-than-perfect credit that don’t need a deposit.

Unsecured credit cards might sound tempting, but they come with their own set of challenges. They might end up costing a lot more in fees. It’s important to weigh these options before deciding what’s best for us.

A Place to Keep Money Safe

A checking or savings account offers us a secure spot to stash our money. These accounts also help us save for emergencies, which is super important. 

Sometimes, having an account like this is needed to put down a security deposit for a secured card. Also, banks use these accounts to judge our financial strength. 

If past account issues stop us from opening a new one, we should find a second-chance option in our area.

A Credit Profile with No Major Issues

When we’re trying to get a new credit card, it’s critical to ensure our credit profile looks good. Many cards, like the Discover it® Secured Credit Card, check out some details before accepting us. 

They want to make sure things like our income or any past bankruptcies don’t stand in the way. This is common because issuers want to see if things in our financial life are on the upswing.

Here’s a tip: Before applying, let’s work on boosting our credit. Catching up on missed payments can make a big difference. 

If we’ve had a bankruptcy recently, we might have better luck with our local banks or credit unions.

Some cards skip credit checks entirely. While these sound convenient, they usually cost more in fees or interest. 

It’s always a good idea to compare options to find one that fits our needs and budget best. It’s worth putting in the effort to tidy up our credit records.

A Fresh Start with the Lender

Sometimes, past issues can affect our ability to get approved for a new credit card. If we’ve had trouble paying back what we owe to a certain company in the past, they might not trust us to approve a new card. 

But that doesn’t mean we’re out of options. There are plenty of banks eager to work with us. Let’s focus on those who are willing to help us rebuild our credit.