Second Chance Credit Cards – Tips For Approval
A second chance credit card would be the perfect solution for anyone who has suffered a recent financial hardship. These cards are specifically designed for those who have recently fallen on the credit repair ladder. These cards are normally offered to those with an imperfect credit record who no longer qualify for unsecured credit. They let you rebuild your damaged credit by making small, one-off payments. The second chance credit card will help you get back on track and restore your damaged credit rating.
There are two ways to qualify for a second chance credit card. Either you have a credit limit which is the maximum amount you can apply for at any time; or you have a regular bank account that is being held in a positive manner. In order to qualify for the second chance credit cards, you will be required to open and use an active checking or savings account. You must also keep your balance below your credit limit at all times.
One of the first things the lender will want to know is whether you have a regular job and how much income you bring in each month. This will take into account things like overtime, commissions, and bonuses. The second thing the lender will look at is your current level of debt and the amount of money you currently owe. Lenders want someone who is responsible and pays off their bills on time. If you have good credit but find yourself struggling with bill payments, then it may be a good idea to get approved for a secured credit card.
Secured credit cards often come with higher interest rates than other options, but there are pros and cons to both. For example, secured cards often come with an annual fee which isn’t usually as high as the fee charged by unsecured credit cards. With a secured card, you don’t need to worry about late fees or over limit fees. If you use your card responsibly, you can build up your credit and be offered a low rate in the future. On the other hand, if you don’t pay off your bill in a reasonable amount of time, then you risk losing your secured card.
Your payment history and credit score are factors that lenders use when deciding whether or not to approve you for a second chance credit card. If you make your payments on time, they may be willing to offer you a second chance. The better your payment history and credit score, the more likely it is that you will qualify for unsecured cards. Lenders look at how you manage your money and pay your bills. If you have poor money management habits, then chances are you won’t have a lot of choices when it comes to credit cards.
You should make sure that you keep your personal finances in good shape. If you have a lot of consumer debt, you should seek credit repair help. The sooner you start improving your personal finances, the more likely you are to be given a second chance credit card. Don’t spend money you don’t have or use your card in ways you don’t intend. By being responsible with your money and following a budget, you can turn your financial situation around and get approved for a second chance credit card.