We already have a detailed article explaining what credit histories are. Therefore, we will not repeat ourselves. We only note that in Russia there are several dozen credit history bureaus (CHBs). And banks, checking you, request information from these CBIs, and, in turn, they pass the information on to them.
If you have received at least one refusal from the bank, this is already a reason to think. To avoid wasting time, find out what your credit history is like. How to do this is described in the article mentioned above.
Got a negative result? You should not give up, because. You can still apply for a credit card . There are several solutions, about them below.
Presumption of innocence
First of all, having received the data of your credit history, analyze the indicators. Bad credit history is formed due to delinquency. Check the documents to see if you were late with payments? It happens that this happened through the fault of the bank – the money was credited late.
It happens that the human factor “turns on” – it’s just that a bank employee makes a mistake and sends the wrong data to the CBI. In general, there are many options and you should check them out.
If the delays occurred through no fault of yours or you have a serious excuse for them (illness, temporary disability, dismissal, etc.), then you need to contact either the bank or directly to the BKI. Your arguments may be accepted, and the story will become positive.
Credit card options with a bad history
If you are to blame for the presence of bad credit history, then let’s consider possible options for the design of “plastic”.
Firstly, if you receive a salary through any bank (or keep a deposit in it), then the first thing you need to do is contact it. Because If you (or rather, the bank) will have insurance in the form of a deposit or regular salary receipts, then the probability that the bank will issue a credit card is extremely high.
You can also get a debit card with an overdraft. The interest on a loan from such cards is quite high, but they are more readily issued.
Secondly, the chance that in some banks a credit card will still be issued to you, in any case, remains. Try to apply to systemic large institutions for which the card business is a priority. Of course, they will also check you, but not scare them much. Here, each case is individual and depends on the rating of the story. Examples of such banks include Russian Standard, Renaissance Credit, Home Credit, Biobank, and Tinkoff Credit Systems.
The next method is opposed. It is worth trying to contact small or regional banks They may also turn a blind eye to bad credit. But for other reasons – because of the high competition in the market and the lack of customers.
Thirdly, you can make the easiest move. Go online and start sending applications to all banks in a row. Fortunately, modern Internet technologies make this task not so tedious. Again, it should be noted that there is a fairly high chance that some banks will agree to issue you a credit card. And if the applications are approved by several financial institutions at once, you can choose the most suitable option for yourself.
Fourthly, there are now enough firms that offer assistance in obtaining credit cards. They don’t care what your credit history is or whether you have a source of income. But we do not recommend contacting such companies.
How to improve credit history with a credit card?
There is no doubt that sooner or later you will receive a credit card even with a bad history. But be prepared for the fact that the bank, going towards you, wants to protect itself. You will most likely be agreed on a minimum credit limit and the maximum possible interest rate.
But it’s better than nothing, right? This is your chance to improve your credit history. All that needs to be done for this is to use the card and pay off the debt promptly (data on this will be sent to the CBI).
If you have a card with a grace period, this is generally wonderful. You pay with it in stores, keep within the preferential limit, pay off your debt on time without interest, and your credit history is slowly improving.
As you can see, there are no hopeless situations. And getting a credit card with a bad credit history is real. There are even multiple paths. Which one to choose is up to you.