Getting a HIGH RISK credit card is not very easy

A Credit Card is a plastic card which allows you to make purchases on credit which means “Buy Now Pay Later”. Using the credit card you can buy what you like immediately and pay for it in instalments which is why it is one of the most popular products that is offered by any bank. However, issuing a credit card to a customer has a lot of risk associated with it for the bank. Hence, the banks are extremely careful. Therefore, getting an approval for the credit card is a difficult task without having a good credit report backing you. It is a Catch-22 situation because to be approved for the credit card, you should have a good credit report and to get a good report you need to have credit.

This cycle does not approve credit cards for those without previous credit, limited credit or negative credit report. But you can get a credit card by getting to know the types of credit cards that are available in the market and know the methods to build a good credit report for your self.

You should decide which type of credit card you want to apply for depending on your present situation. Suppose you are studying, then you should apply for the student credit card. However, if you are not a student and a person who has not taken credit before then the card which is safe and secure and has a co – signer will be the best bet for you. With such a card the co – signer is the guarantee that you will pay your credit card debt on time, which means that if the card holder does not pay his debt then the co – signer has to do it. According to the historical reports, 75% of the time the co-signer is forced to repay the debt.

Additionally, the bank which issued the card will first try to get the money without going in for a settlement with the holder of the card. The same methods can also be applied to the co – signer. They may be sued in court. Worst part is, if the debt isn’t repaid, then the credit reports of both the card holder and the co – signer will be dented.

In spite of all these risks, the co – signed card is a great tool for a relative or a friend to build a good credit report so that one fine day they will be able to get their own credit card. The three options that can help you are: pre – paid, secured or co – signed credit cards. However, these options should be used only till you build a good credit report to get approved for the normal credit card.

You should know how the banks determine your credit worthiness. This will help you get a credit card. It is referred to as the “3 C’s of Credit”; collateral, character and capacity. Collateral is the assets owned by you to guarantee your debts, character is your length of employment, credit history, etc and Capacity is how capable you are to pay your debts.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account, high risk ach account or offshore merchant account for a high risk merchant.