Despite how you get there, being stuck trying to rebuild bad credit might be a difficult state. Unfortunately, even if you have made the decree to turn over a new financial page, the credit card companies are usually unwilling to take your word for it.
On the plus side, some of the credit card issuers are happy to present credentials to the credit-challenged. On the negative side, these offers typically come with strings that make them less attractive. For example, secured credit cards are the easiest to obtain with bad credit, but require an upfront cash deposit to open.
Meanwhile, those looking to avoid an initial deposit will face other complications. Primarily, the select will likely come down to a store card with restricted usability, or a universal unsecured card with high-interest rates and fees. For those who cannot afford to — or simply don’t wish to — make an initial cash deposit, the limitations and/or increased fees of an unsecured credit card can be worth the trade.
Although the optimal way to boost your credit card approval odds is to improve your credit, thus decreasing your apparent credit risk, you can find success by approaching the problem from the other end. Specifically, you may reduce your potential credit risk by selecting a credit card that is inherently less risky.
For example, store credit cards, such as Fingerhut’s unsecured credit account, might be much easier to obtain than other kinds of credit cards. This is because of the fact that you may only use them with the issuing store, which restricts your apparent ability to accrue so much debt that you’d be unable to pay it, thus making it less risky for the issuer.