With less than perfect credit, it can seem like an uphill battle to get credit card approval. While there are many factors that come into play when a card issuer reviews your application, being aware of the following can increase approval odds.

1. Make timely payments on current debt. Even one missed payment can lower your score by 100 points.
2. Keep your credit utilization ratio under 30% month-to-month. This means if you have a $1,000 credit limit, keep the open balance at $300 or less consistently.
3. Think twice before closing old zero balance accounts. The longer you can show a favorable credit history, the better potential you have at approval.
4. Don’t apply for multiple card all at once. Having back-to-back inquiries on your credit report can be a red flag for financial troubles.
5. Keep an eye on your credit score. Review your credit score on a regular basis and immediately dispute any questionable changes.

Both secured and unsecured credit cards work in the same manner – both can make purchases wherever the card brand is accepted and both require regular payments towards an outstanding balance. The main difference between the two is a secured card requires a refundable deposit to be sent to the card issuer upon approval. In most cases, your deposit equals your credit limit. Approval for a secured credit card is often easier as there is less risk of loss to card issuers. If rebuilding or establishing your credit history, this is an excellent option for you. Secured credit card issuers often report to the credit bureaus, meaning timely payments helps build your credit profile. An unsecured credit card does not require a deposit and fully relies on your credit rating for approval. There are excellent options for unsecured credit cards for those with less than perfect credit. While you might pay higher interest and fees compared to someone with an A+ credit rating, responsible use and timely payments can build your credit history quickly.

Monitoring your credit score is important to stop identity fraud in its tracks and correct reporting errors before they affect your rating. When signing up for credit score monitoring service, expect to receive alerts the moment suspicious activity is detected. This invaluable tool is must-have to regain financial health for a wide-array of reasons. From scanning the dark web to disputing fraudulent transactions, the main goal of credit score monitoring is to improve and protect your credit history. By reviewing all three credit bureaus, these services minimize damages to your credit and good name. This “warning” systems also allows you to freeze your credit so no hard inquires or additions can be established without your permission. There are many services to choose from and it’s important to weigh the pros and cons of each to decide which is the best fit for you.

When considering whether to apply for a personal loan, it’s important to understand the big picture. A personal loan is most often used to consolidate debt or fund a large purchase. With interest rates historically lower than credit cards, a personal loan is more cost effective when needing a low monthly payment. Whether or not a personal loan will help you, largely depending on how you spend the funds and how responsible you are with repayment. Before applying for a personal loan, have a specific amount you are looking to borrow and know how the funds will be used. Are you needing to replace a refrigerator on the fritz? Do you need to pay for school or an out-of-control medical bill? Are you looking to consolidate your credit card debt from multiple high-interest cards? Knowing the answers to these two questions will help determine the best lenders for your needs. Making on-time payments on a personal loan help build a positive credit history and improves your credit score. You also benefit by establishing a solid track record with your lender, making it easier to borrow in the future. Additionally, most personal loans are funded quickly, meaning you can have cash fast when it’s needed most.

Credit Card Chest is a trusted destination for those with less than perfect credit looking for financial products that fit their needs. Our goal is to educate our customers on how they can take control of their finances by providing reputable financial offers. From credit cards to auto loans, our well-respected partners are able to deliver reputable products no matter your credit history. We have been publishing hand-picked financial offers for consumers since 2013.We aim to educate our readers on how they can get better rates, improve their credit score, and rebuild their finances. Our mission is to help all people – regardless of income level or credit history – get the best possible terms that are tailored to meet their needs. We aim to help our customers achieve financial independence and live a better life today, tomorrow, and always!