Be it travelling to an exotic location or fulfilling the immediate cash requirements, we, most of the time, apply for a loan, don’t we? And it’s all smiles when that is approved by the concerned bank or any other financial institution. Then comes the time to repay the faith reposed by the lender in us by paying the EMI on time. But the dynamics of the modern life is such that we all look to breach the wish boundary even if it takes humongous spending to achieve that. In a bid to do so, we, sometimes, go haywire and fail to repay the EMI on time. And when the pattern lengthens due to the reasons best known to us, the credit score or say the CIBIL score starts to bite the dust.
Even then, we people don’t want to stop spending, right! And, what happens next? You and I apply for the credit card, hoping that it will get approved. But comes the rude shock in the form of rejection. And we start scouting for the ways to get the card so that we can shop even without cash.
Yes, there are some ways by which credit card can be given to people with a bad credit history. But that requires strong discipline and commitment with regards to your spending. Are you ready to ride that tough road? Then, read the article carefully and implement the steps as advised.
Table of Contents
How to Gain Credit Card Approval with a Bad Credit Record?
So, if you have a bad credit record on account of constant defaults on loans, you can adopt the following ways. These ways may sound tough, but can be effective when you get disciplined in your overall spending. Without much ado, let’s focus on the steps.
Pay Off the Outstanding Loan
The first and foremost thing you need to do is to clear off the debts as soon as possible. Keep a track of your daily expenditure so that the EMI repayment can be done smoothly. Even if you are required to cut down the expenses on your favourite stuff, you should do that. This will help save the bucks to repay the EMIs. When you do it regularly, you will get to save even more and can repay the loan faster. With the improvement in the repayment, the CIBIL score would start to jump and enhance your creditworthiness. By following this routine, you are more likely to gain the nod from the lender for a credit card, unlike when you get stuck to the routine of overspending and not able to pay off the EMI.
Secured Credit Cards
Willing to open a fixed deposit with a bank? If ‘Yes’ is your answer, a credit card can be in your wallet against the fixed deposit. The credit limit, of course, will be based on the amount of fixed deposit. Either the limit can equal the quantum of deposit or a bit lower than that. But again, you should not go overboard and make a disciplined shopping via credit card. If it all the need arises to go for a big purchase, you can convert it into EMI and let things be easy for your pocket to handle. The interest will be charged, but will be lower than the normal cards.
So folks, adhere to the aforesaid steps and get a credit card even if you are fraught with a bad credit record. A disciplined shopping, coupled with a focus on cutting the expenses on non-needy things can go a long way in improving your credit profile. Remember, a disciplined financial life leads to a world of luxury and privileges that the credit cards offer. But even when you get the card, shop well within your limit to repay. The credit utilization ratio must not be on the higher side.