The economic recovery is slower than expected, and the credit crunch is actually far from over. It is still difficult to apply for cash back credit card with bad credit at major banks because these financial institutions are still not relaxing their credit guidelines. You can only get approved for secured credit cards for bad credit which is designed to help you rebuild credit at the cost of higher fees and no cash rebate incentives.
So is it still possible to get a 5% cash back credit card with no balance transfer fee, zero percent APR for 12 months, zero percent interest on purchases for 6 months, etc when you have poor credit? Not at the moment, so you may just need to focus on using a secured credit card that reports monthly to the credit bureaus. This will help you improve your FICO score fast so that you can try applying for a cash rewards credit card after 3 months.
And if you want to further increase your chances to get approved for a cash rebate credit card, you can actually do a few more things instead of waiting indefinitely. Simply pay off your personal debts one by one starting with the smallest one, and increase your income by taking another job. This will quickly lower your overall debt to income (DTI) ratio and help you apply for the best cash back credit card. Pay off your short term payday loans with high interest as soon as possible.
As your credit score improves, you will find pre-approved cash back credit card offers in your mail as now the banks want you to become their customer. This is so much better than begging them to give you a credit card in the past. As better card offers come along, you can sign up for these and enjoy longer interest free balance transfers. If you know how to managing your expenses carefully with cash back credit cards with zero APR transfers, you can save a lot of money while maintaining a high FICO credit score.
How To Get Approved For Cash Rewards Credit Card With Bad Credit
There is an easy way to check whether you can get a new cash back credit card for bad credit. Simply ask yourself the following questions to check your eligibility for a credit card from major banks. Do you carry any balance on your existing cards? Make sure you pay off the balances so that you are under 25% of the credit limits for every card.
As long as your credit score is not very bad, banks are less concerned provided your total credit card debts are not overwhelming. Banks will then be offering you nice 5% cash rewards card offers even with bad credit.
And there is no need to wait for pre-approved credit card offers in the mail. You can try applying online anytime and look for those with no annual fees. Consider where you spend most of your money. If it is on gas, groceries or books etc, make sure you apply for the card that gives the most reward points on such purchases such as a gas credit card or a grocery store credit card.
If you have a big unpaid balance and is subjected to 20% credit card APR interest, forget about cash back rebates since they will not help you save money. What you need now is a free balance transfer card offer with the longest introductory zero percent APR. This can save you a lot of interest fees every month up to 12 months or more. Meanwhile, cut back on the expenses and forget about earning cash back rewards. Its 5% cash back versus 20% interest on your credit card balances for God’s sake! The same applies to debts from installment loans for bad credit whih are easy to get because of no credit check and other easy lending rules.
Even when you see major banks advertising their latest 5% cash back credit cards, it does not mean you can get it with bad credit. Usually, the 5% maximum cash rebate is only applicable for certain types of purchases or at certain stores. Some people with different types of cash rebate credit cards will remember to use the card with the highest cash back for each type of purchases.
For example, if you spend a lot on grocery or gasoline expenses especially for big families, look for cash back cards with extra bonus reward points at gas stations and grocery stores. You will be able to get 5% cash back gas credit cards and maximize your cash rewards. For singles who dine out a lot, get cards with full 5% rebates or discounts at cafes and restaurants. For frequent travelers, get the best airline miles credit card offers, so that you can quickly earn a lot of rebate points when using the airline rewards credit card to pay for air tickets, hotel books, car rentals etc.