If you end up with poor credit, it can seem like a monumental experience to build that credit back up. While it’s not always easy to build your credit back from a poor credit area, it is completely possible for someone to go from poor credit to excellent credit as long as they know how to do it. Here are four tips you can use if you’re looking to get the best credit card for poor credit as a family.
1. Become an Authorized User on Someone Else’s Account
One option you can consider looking at is becoming an authorized user on someone else’s account. As an authorized user, you get your own card for that account and the same ability to make purchases, and typically, the bank reports information for that account to the credit bureau for your name as well. If you have bad credit and your partner has good credit, or vice versa, this can be a helpful way to increase credit for the partner with worse credit.
2. Only Apply for Credit Cards You Think You Can Qualify For
When you apply for a credit card, the credit card company typically does a “hard inquiry” on your credit report. While a so-called “soft inquiry” doesn’t show up on the credit report, a “hard inquiry” does, and it can have a significantly negative impact on your credit score. It’s important to limit the number of credit card applications you put in to maximize your score.
3. Work Your Way Up to a Better Card
If you have an especially low credit score, chances are that you’re not going to get the credit card you want right out of the gate. Instead, you’re going to need to settle for a more low-tier credit card until you’re able to get the credit score necessary for a great credit card. Settling for this credit card that isn’t as good is a great stepping point. In the next year, you can improve your score until you can qualify for a better card.
4. Be Patient and Wait for Your Score to Steadily Improve
Your credit score is not going to change overnight. Oftentimes, you’ll want to wait at least 4-6 months before you start seeing a marked improvement in your score. You need patience when you’re waiting for your credit score to improve, and that’s why it’s important to leave it alone for multiple months at a time for best results.
Families often want to make sure they have great credit so they can get a good house, a good apartment, a good car, and even access to better credit cards. However, if one or both of the adults of the house have bad credit, there’s hope. You can use these tips to improve your credit. It’s possible to get a credit card even with bad credit, and the more you invest into this, the better your credit will end up becoming.