Having bad credit can make it difficult to get approved for credit cards‚ but there are still options available to you. Store credit cards are one type of credit card that can be easier to get approved for‚ even with a low credit score.
Why Store Credit Cards Are Easier to Get With Bad Credit?
Store credit cards are issued by retailers; rather than traditional financial institutions like banks or credit unions. Because of this‚ the approval criteria for store credit cards may be less strict than for other types of credit cards. Additionally‚ store credit cards often come with lower credit limits‚ which can make them a good option for those with bad credit.
One other reason that store credit cards are easier to get with bad credit is that many retailers offer credit to their loyal customers. Retailers know that the more customers use their store credit card‚ the more likely they will be to shop in their store. As such – retailers are often willing to approve store credit cards for customers who have a history of shopping at their store‚ even if they have bad credit.
How to Get Approved for a Store Credit Card with Bad Credit?
- Building a credit history with the store: Many retailers will be more likely to approve a store credit card for a customer who has a history of shopping at their store.
- Providing a co-signer: Some store credit card issuers may allow you to apply with a co-signer‚ which can increase your chances of approval if your credit score is low.
- Applying during a promotion: Some retailers offer special promotions for store credit cards‚ during which approval criteria may be less strict. It’s worth keeping an eye out for these promotions and taking advantage of them if you’re looking to apply for a store credit card with bad credit.
Examples of Store Credit Cards that are Easy to Get with Bad Credit
- The Target REDcard: This store credit card is known for its generous rewards program‚ which includes 5% off purchases at Target‚ free shipping on Target.com‚ and an extended return policy. The approval criteria for this card is known to be relatively lenient‚ making it a good option for those with bad credit.
- The Walmart Credit Card: This card also offers rewards and discounts on purchases made at Walmart stores and on Walmart.com. It also has a relatively lenient approval process‚ making it a good option for those with bad credit.
- The TJX Rewards Credit Card: This card can be used at TJ Maxx‚ Marshalls‚ and HomeGoods stores and offers rewards and discounts on purchases. It also has a relatively lenient approval process‚ making it a good option for those with bad credit.
The Bottom Line
Bad credit doesn’t necessarily mean that you can’t get approved for a credit card. Store credit cards can be easier to get approved for‚ even with a low credit score. If you’re looking to apply for a store credit card‚ it’s worth considering one of the cards mentioned above‚ or looking into store credit cards offered by retailers where you frequently shop.
It’s important to remember that store credit cards can have high-interest rates and less benefits and rewards compared to other credit cards‚ so it’s important to consider the overall terms and conditions of the card before applying. Additionally – having a store credit card with a low credit limit can be beneficial for building credit‚ but it’s important to use it responsibly and make payments on time. Late payments can have a negative impact on your credit score‚ which can be particularly detrimental if you’re trying to rebuild your credit.
It’s also important to keep in mind that having a high balance on your store credit card‚ even if you make payments on time‚ can negatively affect your credit utilization ratio which is an important factor in determining your credit score. It’s recommended to try to keep your credit utilization ratio below 30% for maximum positive impact on your credit score.
It’s also good idea to check your credit report and score before applying for a credit card. This will give you a good idea of what areas you need to work on to improve your credit score. There are several free credit report and score services which you can use.
Finally‚ consider the fact that having multiple credit cards‚ including store credit cards‚ can have a positive effect on your credit score‚ as long as you’re using them responsibly and making payments on time. By following these tips‚ you can increase your chances of getting approved for a store credit card with bad credit and use it to improve your credit score over time.