Let's face it – having bad credit is not something you want. It can make life more difficult and limit your access to credit and financial products. However, it doesn’t mean you have to give up on your favorite clothing stores. Thanks to clothing store credit cards designed for those with less-than-stellar credit, you can still enjoy shopping without breaking the bank. Read on as we explore the options available to you and how you can use clothing store credit cards judiciously to improve your credit score.
Clothing Store Credit Cards For Bad Credit Table of Contents
Finding the Right Clothing Store Credit Card
When looking for a clothing store credit card that caters to individuals with bad credit, there are multiple factors to consider. Here is what to look for:
Ease of Application and Approval
Search for cards that have a simplified application process and are more likely to approve applicants with low credit scores. Keep in mind that each application usually results in a hard inquiry on your credit report, which can negatively impact your score. So, try to find a card that offers a prequalification process that doesn’t require a hard inquiry.
Secured vs Unsecured Cards
Some clothing store credit cards are secured, meaning you must provide a deposit as collateral. Your credit limit is then determined by the amount of your deposit. On the other hand, unsecured cards do not require a deposit but may have higher interest rates and fees. Determine which type suits your financial situation better before applying.
Interest Rates and Fees
Cards for bad credit often come with higher interest rates and fees. Be aware of these costs and compare them when choosing a card. Take advantage of cards with no annual fee or a low-interest rate introductory period.
Select cards that report your credit activity to the three major credit bureaus (Equifax, Experian, and TransUnion). This will help you keep track of your progress and improve your credit score with responsible use.
Popular Clothing Store Credit Cards for Bad Credit
Here are a few examples of clothing store credit cards that cater to individuals with bad credit:
- Fingerhut Credit Account: Offers an application process that considers applicants with bad credit. They report to all three credit bureaus and offer a wide variety of products, including clothing, electronics, and home goods.
- Genesis FS Card Services: Genesis offers several store credit cards for individuals with low credit scores. These include the Indigo Platinum Mastercard, Reflex Mastercard, Milestone Gold Mastercard, and Fit Mastercard. They report to the credit bureaus and offer small credit limits with the potential to increase over time.
Responsibly Using Your Clothing Store Credit Card
While obtaining a clothing store credit card for bad credit can be a valuable tool in rebuilding your credit, it is essential to use it responsibly. Here are some tips:
- Make all your payments on time each month. Late payments negatively affect your credit score and can lead to high late fees and other charges.
- Try to keep your credit utilization low – ideally under 30% of your available credit. High utilization can damage your credit score.
- Closely monitor your account activity to ensure you don't overspend and can pay off your balance each month.
- Track your credit score progress. Keep an eye on the improvements and setbacks in your credit score and make any necessary adjustments to your habits.
Clothing Store Credit Cards For Bad Credit Example:
Meet Sara, a millennial with a not-so-great credit score, due to a few late payments. Sara is determined to improve her credit score so she can enjoy better financial opportunities in the future. She researches clothing store credit cards for bad credit and discovers the Fingerhut Credit Account. After applying and getting approved, Sara makes a plan to use her new card responsibly.
Sara sets a monthly budget for her Fingerhut account purchases and diligently monitors her spending. This helps her keep her credit utilization low and allows her to stay on top of her monthly payments. Over time, Sara notices a steady increase in her credit score due to her responsible card usage. Eventually, Sara qualifies for more favorable credit card offers and is well on her way to achieving excellent credit.
With smart choices and responsible use, clothing store credit cards for bad credit can be a helpful step in rebuilding your credit score. As always, it’s essential to understand the terms and fees associated with any credit product before applying. Don't forget to share this Flik Eco guide with friends who could also benefit from these tips. And to continue learning about personal finance and credit management, visit our website for more articles and advice tailored just for you.