Can you still get a credit card if you have a low credit score?

When you miss payments, or forget to pay a bill, this pattern will be recorded on your credit history, and can leave you with a low credit score. This can unfortunately make it difficult for you to borrow money down the track. 

But Can You Get a Credit Card with a Bad Credit Score?

It certainly isn’t impossible to qualify for a credit card if you have a below average credit score. Credit cards generally have higher interest rates as they are unsecured loans – which is loaned money that does not have any collateral. If you have a low credit score, you will likely not qualify for lower interest credit cards. 

Our Top 3 Tips for Preparing to Apply for a Credit Card with a Bad Credit Score

1. Improve your Credit Score

Take 6 months to a year to improve your credit score. You can start by contacting a credit history agency, such as Centrix or Equifax, so you can see where you can improve your credit. Pay any outstanding payments. Rearrange your budget and see where you can reduce your expenses so that you can make all your bills and payments on time. Jump on NZ Compare’s comparison platforms to compare your different utility bills and see if you can find a better deal that’s easier to manage. 

Compare your Bills

2. Consider your Income 

Do you have a steady stream of income? The credit card provider will want to know that you have a consistent stream of income. Make sure your employment position is stable and also be sure that you are applying for a credit limit that is appropriate for your income and expenses. Your lender will want to make sure that you can afford to pay off the balance as they don’t want to lend money to someone who cannot afford to pay it back. 

3. Pay Off Other Loans

If you have any other loans or credit card balances outstanding, it’s a good idea to pay it all off before you apply. If you can prove to your lender that you can pay off your loans consistently, your lender will consider you as less of a risk and will be more likely to approve your credit card. 

Don’t forget to jump on NZ Compare to compare your bills!

It is easy to compare your bills with NZ Compare. Unlock potential savings that will make a difference to your budget within minutes for FREE. Here at NZ Compare, we are all about helping Kiwis make better decisions with their hard-earned money and our user-friendly platforms make it easy to compare broadband, power, mobile, and loans and insurances. 

Choosing the Right Credit Card

Further Reading:

6 Tips for a Budget

Personal Loan vs Credit Card