There are credit cards for folks just like you. If your credit score is in the range of 350-500, you don’t have a vast amount of options, but you do have some. The best strategy may be to get a secured card. Secured credit cards require a deposit when you set up the account. That money sets your credit limit. If you deposit $200-300, that’s how much your credit line is. If you don’t pay what you owe, the lender doesn’t lose out, they will take money from your deposit. If you are a model credit citizen and pay your bills promptly, over time you’ll raise your credit score and qualify for an unsecured card. When you upgrade or close a non-delinquent secured card, the issuer refunds your deposit.
Because you put up collateral, it’s easy to get a secured credit card. Keep in mind, the goal of getting a secured card is to build and boost your credit. Be sure to find out if the secured card you’re applying for is reports to the three major credit bureaus, Experian, Equifax (NYSE:EFX) and TransUnion. If your secured card doesn’t report to them, it won’t help your credit history and negates the point of having the card.