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I am currently in a very low band of credit points as several banks have declined to give me a credit card. Phone contracts are also limited opportunities. I want to have a credit card to improve my score but not sure where should I apply for one?
Since you do not have a good credit score, it is very difficult to get an unsecured credit card. If you use this low credit limit card efficiently, you can improve your score. For this all you need to do is to make regular purchases with this card and make payments on time. This will help you to build up a good credit history and therefore a good score.
The most important factor that affects your credit score is your credit history because it contributes about 35% in your FICO score. Now, having a credit card with low credit limit does not mean that you cannot improve your score with the card. If you make your utility bill payments with your low limit card, and pay back the outstanding amount in time and make no late payments, then I am sure that your credit history will improve. Once your credit history improves, you can go for high limit credit cards.
Thanks Mary and Scott,
Do you know what type (or example) of those low credit limit cards? My debit account seems fine as they increase my limit of overdraft recently.
Just worried that I can not even apply for those low limit band...
If you do not have a excellent credit score, it is very difficult to get a even a low limit credit card because of the recent recession in the US economy. All you can do is to go for a high limit secured credit card. Since secured credit cards are backed by your own money, you need not require a good credit score to get such cards.