There are so many companies that offer credit cards with no bad credit history. However, there is a huge chance that you will have a bad credit background. When you apply for a card, the company will ask for your income. In most cases, it is not possible to prove that your income is above the minimum requirement. If you have no proof of income, the company will not be able to issue you a card.

If you don’t have a bad credit background, it simply means that you have a good credit background or no credit background at all. To get a credit card seamlessly, your credit score must be good (670 – 799) or (800+). With this range of credit scores, you can easily get a credit card that earns you rewards for your spending. However, before applying for a credit card, you must research to know whether you qualify for one. 

Below are the basic rules that guide the insurance of credit cards. 

You must of legal age

The legal age to get a credit card is 18. You can’t get a credit card if you are less than 18 years. However, you will have to get a regular source of income before you can be approved for a credit card. If you don’t have one, you can decide to apply for a joint credit card with a friend or family.

However, if you are in the college, you can put your annual earnings from an on-campus part-time job while applying for a credit card.

You mustn’t have a lot of debts 

Before you are issued a credit card, your debit history will be checked. If your debit history on your other credit card balances and loans is much, there is a high possibility that you may be denied.

Usually, a credit card issuer will compare your debts to your income, and if the ratio of your debt to income is too high, it simply indicates that you lack enough income to pay to get another credit card, and you may be denied on this premise.

Get a good credit history

Your credit history can determine whether you will be issued a credit card or not. If your credit history is good, you can easily get a card. This is not to say that there aren’t credit card issuers that issue credit cards to individuals that have a bad credit score, or no credit history at all.

Have a source of income

For you to qualify for a credit card, you have to have a personal source of income or access to any household income, the access must be reasonable, and reasonable access includes a deposit into a shared account or regular transfer from a wage earner’s account to your account. This simply depicts that as a youngster of 18 years, you can’t put your parent’s income in the credit card application, unless your parents consent to be paying your bills every month.

Get a co-signer 

In the case, where you have a bad credit history or aren’t young enough to own a credit card or you have insufficient income, you can get a co-signer. It can be a friend or family member, and the qualification here is that the co-signer must meet up with the credit card qualification for the credit card to be approved.

Bad Credit Loans – A Guide To Avoiding Debt & Living Without a Credit Card

One may wonder if it is possible to live without a credit card, despite how hard it seems to be, it is very much possible. It is possible to break out from the addiction of always living on debt, all you have to do is to be disciplined about your spending and get to understand some principles that I will be showing you today.

Firstly, to avoid debt and live without a credit card, you have to understand the difference between bad credit loans and bad credit loans.

A bad credit loan is a loan that the bank or financial institution grants you.

The term “bad” bears different meanings, and the meaning is dependent on the lender. For instance, a bank may not require collateral for a bad credit loan but the majority of lenders do, especially lenders in the insurance companies, personal finance companies, and banks.

7 Guides To Avoiding Debt & Living Without a Credit Card

1. Track your spending

One of the most important principles for avoiding debts and living without a credit card is to watch how you spend. There is this temptation that comes when you have a credit card, you feel you can spend recklessly and foot the bill with your credit card. With this kind of lifestyle, you cannot live a life without debts.

To be able to track your payment, you have to start making use of budgeting tools. There is a financial rule that state that if you want to be rich, you should spend only a quarter of what you earn. Save 50% for the government for taxes, invest 25% and the remaining 25% is what you should spend.

1. Save an emergency fund

One of the key sections of budgeting is to save for emergencies. In your budgeting, there should be a portion for emergency funds. This is very important in that it helps you not to fall into debt, or be tempted to use a credit card when an emergency arises.

To save for emergencies, I will advise you to go for online banks. Here’s a list of the best ones you can get. You may wonder why I suggest online banks?

According to our research, online banks pay the highest rates on savings. And they constantly perform better than brick and mortar counterparts. Second, it makes it less tempting to spend the money on something that isn’t an emergency.

1. Do away with the myths about hotels and car rentals

Most people do say that is practically impossible to reserve a hotel or car rental without having a credit card, or going into debt. From my years of experience, I will tell you that this is totally false. You can get a hotel or car rental without a credit card, but the only thing is that it will need you to work harder.

1. Make use of debit card

One of the ways to do away with the temptation of not making use of credit cards is to start using the debit card linked to your checking account. Most times, these cards are part of either Visa or MasterCard debit networks. They can use them anywhere that accepts plastic. When you pay a transaction with this card, the money is automatically deducted from your checking account.

There is one thing you have to pay caution about and is that, you should avoid lines of credit that your bank may extend to you, as these can be a trap for you to start using a credit card. A debit card helps to curtail the way you spend because if you don’t have money in your checking account, you can’t spend or purchase anything with it.

1. Use a prepaid card

Prepaid cards work much like debit cards. The difference here is that they are not linked to your checking account.

For a prepaid card, you have to add money to the card, after that, you can use it as a debit or credit card. Immediately you run out of money, the card stops functioning.  

Some prepaid cards charge low fees; while they are very good ones that offer cash back rewards.

The advantage of using a prepaid card is that it helps you to control your expenses because you can only spend what you only have in it. Some prepaid cards have high-yield savings accounts linked to them that you can use.

Another advantage of a prepaid card is that they accept direct deposit from your paycheck. To get the prepaid cards that have the lowest fees and best features, try out this search tool 

1. Use a PayPal Account

Another important way to avoid debt and not use a credit card is by having a PayPal account.

The advantage of a PayPal account is that payment is very swift online, and it helps you to control your spending. You get issued a Paypal prepaid card that you can hold as a debit or credit card. Do check out her for some PayPal prepaid card reviews.

1. Reject the myths about credit

Most of you are bound to credit and the use of credit cards due to negative myths about credit. The truth here is that living a life free of debts helps you to enjoy life better. Psychologically, it gives you this peace and rest of mind. All you have to do is to work hard. If you are still young, this is a great opportunity to maximize your strength, and follow a disciplined spending culture.

Despite this, credit card has some advantage, however, the damages caused by them far surpass the benefits. 

Below are some of the benefits of having a credit card.

• Building good credit history is beneficial for future financing of assets.
• 0% credit cards serve as an effective way to pay down debt.
• The best cash back card offers to enable you to help 2% or more from your transactions.
• Credit cards help you in handling emergencies and unplanned expenses.
• Credit cards offer better protection against fraud than other payment options.
• Avoid utility deposits
• Helps your purchase travel protections, and finance your car rental

Bad Credit Loans Not Recommended For Everyone!

Many people are not aware that there are bad credit loans available in the market. But, if you want to make a good credit history, then you should avoid taking a bad credit loan.

Bad credit loan has wider consequence than you can imagine. Not only will bad credit loan history lead to fewer loan options and higher interest rates. It also will serve as a disadvantage to you while looking for a job and makes it harder for you to get housing or assets financing.

See also: https://www.youtube.com/watch?v=o5YJ9YfHdhA

What is Plastic? How Should You Apply For Bad Credit Loans?

Plastic is a plastic, which is made from polyethylene terephthalate (PET), it is used in the food industry, medicine, and cosmetics.

There have been increases in the rate of plastic surgeries, not only in the United States but across the globe.

According to AAFPRS members, the total number of surgical and non-surgical facial plastic surgery treatments has increased greatly. It is estimated that 1.4 million surgical and non-surgical procedures have been conducted in 2019 with over 600 producers done by plastic surgeons which accounts for a 40% increase.

Can You Apply for Plastic Cards with Bad Credit Loans 

If you have a bad credit loan history, all hope is not lost for you. There are several medical aided cards you can apply for to get your best plastic makeover, they include:

• Medical credit cards:  Usually, the CareCredit and Alphaeon credit exemplified these medical credit cards. These cards offer deferred interest for a set period, as they can be used for both plastics and dental cases. However, if you don’t repay at the stipulated date, you will be charged the full amount of accrued interest.
• Home equity loan or line of credit: if you own a home and have built up equity, this serves as a great alternative. The interest is tax-deductible, and relatively. However, your home or equity serves as your collateral here.

Below are some of the credit card issuers you can visit for plastic with bad credit history.

• CashUSA.com
• CreditLoan.com
• BadCreditLoans.com
• PersonalLoans.com

Frequently Asked Questions (FAQs)

Can you get a credit card with no credit history?

You can get secured credit cards if you have no credit history from banks and some financial institutions. All you have to do is to deposit an amount of money called a security deposit, that serves as collateral.

What are the easiest loans to get?

Some of the best loans to acquire include:

• Upstart –   individuals without credit history:
• Lending Point – fast approval 
• One Main Financial – flexible terms 
• Avant  – secured loan options 

 Is it impossible to get a loan with bad credit?

Yes, it is possible, but you have to look for a lender that doesn’t require good credit, however, they may charge higher interest. You can also look for lenders that consider other options such as your assets, income, debts, and collateral

Which type of loan does not require a credit check?

Most federal student loans, personal loans, some credit-builder loans, and payday loans are the types of loan that doesn’t require a credit check.

 Conclusion 

Try all your best to stay free of debit and constant usage of credit card. If you can’t, at least ensure you maintain a good credit history.

See also: /the-importance-of-business/

Originally posted 2022-07-04 02:05:56.