My credit score is 650 and I still cannot get a credit card due to late payment history what should I do?
Answers:
I recently read an article about this and the answers were:
1) do NOT close any of your existing credit cards
2) gradually pay off cards with the highest interest first, but keep the cards open once paid off.
3) find credit card companies that are lenient for bad credit.
you can read the full article here:
http://self-betterment.com/money-finance...
i have the same problem also ..i don't know how this credit card companies can trust you if they won't give you a chance..i suggest you can start with a secured card
Make sure you stay current with your credit card and keep your balance less than 50% of the credit limit. This will boost your score and will not make you look like a risk to the credit card company.
Get a secured card. Your local bank should offer them. Basically you put up $500 for a $500 limit. $1000 for a $1000 limit etc. Show them that you are respponsible and you should be able to get a unsecured one pretty quickly, I'd say within 12 months.
Try First Premier Bank or Orchard Bank. They will give you one with less than perfect credit. Although they will charge you a annual fee, but it will help build your credit score.
I second the orchard bank reference. They were the first to give me a chance when I was re-building my credit. I've had that card for 5 or 6 years now. I keep it just as a thank you to them really.
If you are in credit card debt, you probably don't want to admit that your car payment is part of the problem. But it is. You're thinking, but I need a car and my car payment isn't related to my credit card.
In some ways, that's true. But from a cash flow perspective, your car payment severely limits your ability to pay off your credit card debt.
Sell your car. Buy a cheaper one (ideally, pay cash for the new car). Use the money that you're saving (on the car, the insurance, and everything else) to pay down your debt. You'll pay off your debt faster. In a few months or years, you'll be driving a better car than the one you have right now. Read more about it at: http://www.credit-card-gallery.com/artic...
I agree with everyone that's mentioned a secured credit card especially through Orchard Bank. Bank of America and Wells Fargo also offer secured cards as well. If you do your banking with them, you might be able to get one with them. But definitely check out Orchard. Matter of fact, I posted a link to Orchard's website where you can fill out some information to see what you're pre-approved for. I know for certain that you'll be able to get at least a secured card with them.
Good Luck
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