Are you in the market for a credit card but have bad credit? You may have many questions about how to get one, so let’s get some help regarding the best cards for bad credit. In this article, you will understand how to find the right fit for you and your needs and apply for a new card if you’re unsure where to start.

What Is Bad Credit?

If you’re worried about your credit score, the first step is to understand what it means. Your credit report and score are two different things—the former is a record of your financial history, while the latter is an algorithm that assigns a number based on how well you’ve managed your finances.

What’s in Your Credit Report?

Your credit report includes information about:

• How many accounts have you opened at any given time?
• Whether or not those accounts have been paid on time or in full over time?
• How much debt do you currently owe?

How to Get a Credit Card With Poor Credit?

If you have bad credit, there are still ways to get a credit card. For example, you can apply for a secured credit card, become an authorized user on someone else’s account, or ask someone with good credit (like your parent) to co-sign a card.

Know your credit score and what it means

Your credit score is between 300 and 850, with 850 being the highest. It’s based on your credit report, which is a record of your history of borrowing money. Your credit score is used to determine your creditworthiness.

An excellent way to find out if you have a good or bad credit history is through free services like CreditKarma or Credit Sesame. These websites will give you access to all three major bureaus’ reports.

Apply for a secured credit card

A secured credit card is a good option if you have bad credit. Check below what needs to be applied:

• A secured credit card needs a security deposit, which can be paid in installments or all at once.
• A secured card has a low limit of about $200 to $500 and will not affect the chances of getting approved for other types of loans.
• Secured cards are relatively easy to get and can help build your overall credit score over time.

Consider Becoming an Authorized User

If you know an individual with a good credit history willing to help you, ask them if they’d agree to add you as an authorized user on one of their credit cards. If they say yes, both of you can apply together. This will increase your score relatively quickly because it shows that someone trusts you with their finances, showing positive traits about your character such as responsibility and trustworthiness.

Adopt Positive Habits to Build Credit

• Pay your bills on time. Before you can build credit, you need to start with a clean slate.
• Keep your balance low when using a credit card for purchases. The lower the amount owed on your card, the better it is for your score.

If you have bad credit, don’t feel discouraged. As per Lantern by SoFi professionals, “If you want a credit card to build credit but are having trouble getting approved for one, a credit card that doesn’t require a credit check may be a good option for you.”

Plenty of credit cards can help you build your credit score and get you back on track financially.

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