Bad credit score? Don’t worry. Find the best credit card for you on credit cards NZ.

You can still apply for a credit card with bad credit – without being rejected by the banks and ruining your credit score further.

If you have a bad credit rating, it’s not the end of the world. You can still apply for a credit card with bad credit, and there are still reputable lenders out there that can give you a second chance at being a responsible borrower. But you have do have to do your homework first and provide a bank with good reasons to give you a line of credit.

How to get approved for a credit card

The banks have typical lending criteria that you need to meet when you apply for a credit card with bad credit:

1. You must have a job and should be earning over $20,000 a year

A lending institution is not legally allowed to give you a credit card unless you have enough annual income to meet the minimum repayments for that card’s credit limit.

2. Pay off other loans or credit

Lenders usually approve credit cards (or other types of loans) based on your repayment history with cards or loans you already have. You will need to demonstrate a consistent history of meeting your required monthly repayments over the past months. For credit cards, you will need to show that you’ve been making more than just the minimum monthly repayment, to show that you can repay the debt.

3. Fix your credit report

You can check your credit rating and your credit history report for free with several websites.

You can’t improve your credit rating until you know what black marks you need to fix. And you never know what it might uncover – an unpaid phone bill that you can afford to repay now, or even an administrative error that is the whole reason why you have bad credit.

4. Start saving

Lenders look at your current bank statements when you apply for a credit card with bad credit. If you’ve overdrawn your account recently, or if any direct debits have been dishonoured because there wasn’t enough in your account at the time, these things do not look good to lenders.