How To Get Credit When You Don't Have Any Or Your Credit History Is Bad
Low Limit Credit Cards
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A low limit credit card is a credit card with a low credit limit, such as $200 - $250.
Most of the large credit card companies offer low limit credit cards. A company particularly in the market is Capital One, www.capitalone.com .
Many local department stores or other stores offer low limit credit cards which are worth seeking out if they report their accounts to the national credit bureaus.
If you take a low limit card:
- Watch for excessive fees. For instance, one company charged "an annual fee, an account processing fee, a program participation fee, and a monthly account maintenance fee." By the time all the fees were accounted for, the $300 credit limit meant the account holder really only had $53 credit available at issue.
- Be aware of the normal credit card fees -- annual credit card fees, late payment fees, and fees for charging more than the credit limit.
- Watch the limit. You would think that given sophisticated computers, a credit card company wouldn't allow you to charge more than your limit. However, this doesn't seem to be the case. Instead, the credit card companies often let you charge above the limit -- and add an extra fee because you did!
To turn the low limit card into an ever larger credit limit, pay on time each and every month. After three months, ask the company if you can increase the limit. Keep up timely payments, and keep asking for increases in the credit limit.
There is no obligation to tell the company about your health condition. If it seems to be in the past, you can use it to explain what happened to your credit and that it's in the past. This fact then sets the stage for arguing that the company should increase your limits sooner than it usually does.
In addition to searching for companies that offer low limit credit cards, see: http://www.creditstep.com/damaged-credit.php.
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