Credit Card for Bad Credit Possible or Not

The card payment has become necessity of today. The shortage of cash doesn’t matter when you have the liberty to swipe your card at the shopping joint. You can spend as much as your account balance and beyond by using debit card and credit card. The latter one permits the holder to spend up to the credit limit whether you have the amount in account or not. This amount has to repaid at the end of month cycle.

The CC provides freedom to fulfill the desires and gratify the wants. It is the useful medium that can be used in the times of emergency. CC is like a short term loan where the advanced money can be used anywhere and anytime. Also, the user doesn’t has to pay the interest on the advanced amount if the bill payment is done on time that is within the interest free credit limit. There are several advantages of using the credit card and they are as follows:

Advantages of Using a Credit Card:

The benefits of using a credit card are as follows:

Convenient- Credit Card payment is easy and saves the time of locating the ATMs. The customer doesn’t require cash to buy an expensive commodity. The card user can make a large purchase and pay for it in installments.

Quick Cash- The user can avail cash instantly as and when required.

Perks- The card providers give several incentives and privileges on the card purchase. The user can avail advantages like heavy discounts on shopping and dining, fuel surcharge waiver etc.

Enhance Credit Score- The wise usage of credit card and timely repayment increases the credit score of the user. Which in turn helps in building the loan eligibility.

Track Record- Credit card statements assist in maintaining the record of expenditure made in a month.

But the issue is that these benefits cannot be consumed by all. The Bank checks the eligibility before issuing the cc. The card is provided only when the customer has good income and decent credit history. The credit history is checked by calculating the CIBIL score. If the individual has defaulted in paying the earlier advances or has made late payments the CIBIL score is affected. So, getting the credit cards for bad credit score is not an easy task. The Bank avenge from giving the credit card to the customers whose credit score is not good.

The idle score required for acquiring the credit card is 750. The candidates whose score is above 750 are dearer to the Bank authority. However, to the candidates whose credit score is equal to or above 600, the cc is provided. Therefore, it is advisable to maintain the CIBIL score. The score is affected because of the following factors:

• Average timely payments - If the customer pays credit bills or EMI on time the score builds up.
• Negative marks - If the customer doesn’t maintain the advances properly and defaults or forecloses the loan the score is hampered.
• Length of credit - The longer the history, higher is the score. The Bank trusts the people who have a clean track record in the past.
• Number of enquiries - Without checking the eligibility if the customer continuously apply for the loans and cards at various lending institution, the score gets affected as each lender will verify the score with CIR resulting in bad score.

The cc is very common these days and is useful too. But anyone and everyone cannot get it. Credit cards for bad credit scorer is next to impossible until and unless you try and improve your credit score. To improve the score the customer has to clear off the previous credits, pay the bills on time, avoid keeping the bills pending and avail the advances as much as you can pay back.