How To Get a Credit Card With a Low APR With Bad Credit

Bad credit will follow you not just in your finances, but also when you are applying for jobs and seeking housing. Improving a credit score can be challenging, but it is essential. If you currently have a poor credit score, you can still get a low-interest credit card to begin improving your credit history. It can be difficult--especially if you are relying only on your credit report.

Instructions

1

Pull a recent copy of your credit report. Visit this website: www.annualcreditreport.com. This will give you access to a free credit report. You should also pay for your credit score, also called a FICO score. This is the three-digit numbers lenders use to assign rates and fees on credit accounts. Scores above 720 are excellent, but scores below 600 are poor. In general, the higher your score, the lower your credit card interest rate. Regardless of your credit score, however, if you pay late companies will almost invariably raise your rate.

2

Look at the programs offered at your bank. Some lending institutions will look favorably on credit applications if you already do business with them. If you have a long banking history with a checking or savings account at your local bank or credit union, ask a loan officer about low-limit, low-interest cards for current customers.

3

Apply for a secured credit card. These accounts are secured with your own money in a separate savings account. The credit limit is determined by the amount of money in this "collateral" account. While fees and rates on these accounts are traditionally high, you may be able to negotiate a lower rate once you make several consecutive, on-time payments.

4

Ask a friend, family member or colleague to be a cosigner on a credit card. This must be done delicately. A cosigner is as obligated to a credit account as is the primary signer. If you fail to make the payments, your cosigner must pay or suffer the same credit consequences.

5

Ask a family member or friend if you can be an authorized user on a credit card. As an authorized user, you will not be obligated to the credit account but will have access to funds. The credit history on the card is reflected on the credit reports of both the primary signer and authorized user. If you become an authorized user, you can enjoy the benefits of a low-interest credit card account (presuming the co-signer has good credit).