Credit card for bad credit
Having bad credit could be a big problem. This is because it restricts you from applying for a variety of credit cards. It becomes a challenge to find a credit card you can get approved for. Do you know what the worse part is? If you keep applying for credit cards and get rejected, it goes right into your credit record which can further be of negative impact to your credit score.
Basically, this article will help you deal with this problem. Do you have a bad credit score and you’re having a hard time applying for a credit card that suits your score and could help you build it? If yes, there are two ways to go about this.
- Acquire a secured card where you put down a security deposit equal to the line of credit you’re seeking.
- Acquire an unsecured credit card designed for people with poor credit, you wouldn’t have to put down a deposit for this but often, unsecured cards for people with bad credit often comes with a lot of fees and sky high APRs.
I’ll recommend option 1 for you but whichever one you end up choosing, building a stronger credit profile should b your main drive as it will enable you qualify for better cards, rates and loans in the future.
For the option, secured credit cards is what you will be searching for as they are the best cards for people with poor credit scores and credit histories.
Below are some of the best credit cards for bad credits.
This card helps people with low credit scores build a stronger credit profile.
Welcome bonus – N/A
Annual fee – $0
Regular APR – 19.99% – 24.49% Variable
Credit score – Fair/Bad
Pros:
- doesn’t require a security deposit
- No annual fee
- Restricted reward program
Cons:
- Rewards are only available at select Merchants
- No balance transfer options are available
This card has no annual fees and no balance transfers. The NRewards is a solid choice for those who qualify and are eligible for the Navy Federal credit union.
Pros:
- No annual fee
- No foreign transaction fees
- Earn 1 point per dollar spent
- No cash advance fees
Cons
- You need to have at least a grandparent or grandkid that’s a veteran or active military member.
- The account requires a deposit
Capital one platinum secured card is recommended for people whose credit is damaged but not necessarily destroyed. You can rebuild your credit with them.
Annual fee – $0
Rewards rate – N/A
Intro offer – N/A
Recommended credit score – Poor
Pros:
- No annual fees
- With capital one, you can get a credit limit of $200 for a deposit of $49, $99 or $200. You can also make this deposit in installments.
- You can be considered for a higher credit line in as little as 6 months with no additional deposit needed.
- You could earn back your security deposit as a statement credit when you use your card responsibly like making payments on time.
Cons
- People with damaged credit such as a bankruptcy on their credit report are likely not to qualify for this card.
This credit card is a great path to rebuilding credit with no credit check or bank account required. However, you will have to come up with a minimum of $200 for the security deposit.
Annual fee – $35
Rewards rate – N/A
Intro offer – N/A
Regular APR – 17.39% Variable
Credit score – No credit check
Pros:
- No credit check and instant approval check
- Relatively low APR for a “bad credit” card
- No bank account required
- Opportunity to improve your credit with an 85% average approval rate for the past 5 years
- Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card
- Nearly half of OpenSky holders who make on-time payments improve their FICO score 30+ points more in the first 3 months.
Cons:
- The card charges an annual fee. There’s no process to upgrade to o an unsecured card.
Discover It offers an unlimited 1% cash back rate on all purchases plus 2% cash back at Gas stations and restaurants on up to $1000 in combined purchases each quarter, no annual fee and penalty APR, perfect for rebuilding credit.
Pros:
- No annual fee
- Free Fico score access each month
- Cash back match doubles cash back rewards earning at the end of the first year
Cons:
- Rewards are capped.
Conclusion
Are your credits bad and your intending to build them? This article is a must read for you. Consider this top 5 credit cards as one of the best credit cards for people with bad credit scores who intend to rebuild them.
