Want to apply for a credit card when you have a bad credit score? Here’s what you need to know.
It’s hard to get a credit card in Australia when you have bad credit. Credit card guarantors utilize your credit score and the information on your credit report, and your pay, business circumstance and different variables, to decide your unwavering quality as a borrower. On the off chance that your credit profile demonstrates you experience difficulty reimbursing advances and credit, you may not be endorsed for a credit card.
While a bad credit score can negatively affect your odds of getting a credit card for the time being, working to improve your credit rating can help increment your odds of getting endorsed for a credit card later on.
This guide will take you through what you have to know.
What is my credit score?
Your credit score is a numerical portrayal of the information on your credit report and decides your prosperity with regards to applying for credit. Right now, there is anything but an institutionalized method for ascertaining credit scores, so the credit rating bodies utilize their own rating frameworks.
Get your free credit report and credit score
Here is a breakdown of credit scores and credit score grades from two credit announcing bodies, Equifax and Experian. Note that in the event that you arrange your credit score and report from finder.com.au (which you can do by following the connection over), your information will be conveyed by Experian.
Fair / Average
Weak / Below average
What credit products can I get with bad credit?
While you may be looking for a credit card, it is difficult to get approved when you already have bad credit. As bad credit rating credit cards and no credit check credit cards aren’t available in Australia, you might need to consider some of the following options:
- Prepaid travel cards.
- Charge cards. A great approach to stay away from obligation is to direct far from credit and just spend what you have. Debit cards are obligation verification and generally acknowledged as installment. In any case, take note of that utilizing a platinum card will have zero impact on your credit report and can’t enable you to revamp your credit rating.
- Prepaid credit cards. Prepaid cards are like platinum cards as in you’re spending just what you have. Dissimilar to a charge or credit card however, you stack finances on the card before utilizing it. These cards likewise don’t influence your credit rating and don’t charge intrigue, so they can be a decent method to develop your planning aptitudes.
- Here and now loans. This is a advance of up to $2,000 that must be reimbursed between 16 days and 1 year, however for the most part terms are around 62 days. Remember these advances accompany high expenses (a 20% foundation charge and a 4% month to month expense) so truly consider the amount you require it before you apply.
- Bad credit individual loans. If need a bigger sum than a transient advance, there are some bad credit individual advances accessible that can offer amounts up to $5,000 or even $10,000.