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How to Get a Credit Card despite Having a Bad Credit Score?

How to Get a Credit Card despite Having a Bad Credit Score?
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We can’t deny the fact that credit cards have made our life easier with regard to buying things and paying them for a later date. This financial tool has literally become an imperative part of the majority of the people. There are several banks and financial institutions that offer credit cards in the UAE to the individuals who meet their eligibility criteria. Amongst all the eligibility requirements, a credit score is one of the most important factors that lenders consider before offering you a credit card.

So, what is a credit score all about and how much credit score is required to opt for a credit card?

A credit score which is also known as credit history. It is generated after the AI Etihad Credit Bureau (AECB) summarizes the individual’s payment history of credit cards, loans, and any other credit that he/she might have opted from the bank or financial institution. It is basically a 3 digit number that ranges from 300 and 900. The closer your credit score is to 900, the stronger is the credit profile of an individual.

Ideally, a good credit score falls in a range of 700 & more than that. Banks and financial institutions offer credit cards easily to those individuals who have a good credit score. People with low credit rating – usually a credit score below 500 have lesser options for plastic cards.  That is because most of the lenders would take the risk of increasing a credit limit they may not get paid for. The lower your credit score, the tougher it will be for an individual to get approved for a credit card but there is no need to completely hopeless. There are still a few options of credit cards out there for those people who have a bad credit score.

Before proceeding further, let’s have a look at a few handy tips for obtaining a credit card with a poor credit score.

Know Your Credit Score

You probably have an idea that you have a poor credit score because you have previously applied for a loan, credit card, or some other finances and your application has been rejected. And if you have not applied for any finances, till yet, make sure you check your credit rating to check where exactly you stand and whether you will be eligible to apply for that particular credit card or not.

Don’t Apply For Credit Cards That Require a Good Credit Score

It is highly recommended that you should not apply for credit cards that are designed for individuals with a good credit score just to see if your application can get approved. There are high chances that your application to be rejected and consequently, the rejection of your applications can hurt your credit score even more.

You can consider a credit card that is aimed for people with excellent or good credit scores by the kind of benefits and rewards it offers. Some of the best credit cards that require good credit ratings offer promotional interest rates, excellent rewards, and a wide range of benefits. Applicants with a low credit scores are usually denied for such credit cards because lenders don’t consider such individuals a responsible borrower and they have not the ability to repay the borrowed amount. That is why, the majority of the lenders will not keen on offering a credit card or any other type of finance ton such individuals. So, it will be completely a waste of time for you to apply for a credit card which requires a high credit rating.

Find the Best Credit Cards Apt For People with Bad Credit

When it comes to opting for a credit card, there is no need to feel restricted despite having a low credit score. Although people with low credit ratings may not get approved for each and every credit card available in the market, there are still a few options out there they can opt for.

Banks and financial institutions offer a few credit cards that are especially designed for people with a low credit score or no credit at all and can help you to improve your credit score and open other financial possibilities. But remember, credit cards that require a low credit scores usually come with a high rate of interest and low credit limits. An apt way to manage such card is to only spend a small amount and to pay your outstanding balance in full every month. Using a credit card responsibly is one of the best ways to improve credit score.

Aim To Switch To a Better Credit Card

If you got the credit card despite having a low credit rating, don’t just settle with this temporary situation to be perfect. You know, why?

Plastic cards for people with low credit rating usually don’t offer the most attractive benefits and offers. In addition to this, they charge a high rate of interest, annual membership fees, and offer a low credit limit.

So, your main aim is to pay your credit card bill at the right time and refine your credit rating so that you can easily qualify for better credit cards in the future. You can apply for another credit card in about 12-18 months if you have responsibly paid your credit card outstanding balance on time.

Try To Improve Your Credit Score

There are numerous banks and financial institutions that offer some of the best credit cards in the UAE which comes with a plenty of offers and benefits. So, if you also want to be eligible for the one, you must improve your credit score by maintaining a good payment behavior. Pay your credit card bills and other loan repayments on time, keep the borrowing to a minimum, and don’t apply for multiple credit cards. In this manner, you will able to improve your credit score gradually which makes you able to opt for the desired credit card.

Final Verdict

Availing a plastic card with a low credit score might get difficult for you but it is not an impossible task. You can certainly avail a credit card despite having a bad credit score since there are a few lenders that offer plastic cards for people with a low credit score. And don’t forget to follow these aforementioned tips. These handy tips will surely help you out to opt for the card as per your credit score.

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