Introduction
Credit cards for bad credit are designed for individuals who have a poor credit score or limited credit history. These types of credit cards typically have higher interest rates and fees, but they can also provide an opportunity to rebuild credit with responsible use. Some credit cards for bad credit may also offer rewards programs or other benefits to help cardholders improve their financial situation. It’s important to carefully review the terms and conditions of any credit card before applying, especially if you have bad credit.
5 Best Credit Cards for Bad Credit
Credit cards are a convenient way to make purchases and build credit. However, if you have bad credit, it can be challenging to get approved for a credit card. Fortunately, there are credit cards designed specifically for people with bad credit. In this article, we will discuss the five best credit cards for bad credit.
1. Capital One Secured Mastercard
The Capital One Secured Mastercard is an excellent option for people with bad credit who want to rebuild their credit score. This card requires a security deposit of $49, $99, or $200, depending on your creditworthiness. The credit limit is equal to the amount of your security deposit, which can be increased over time with responsible use.
The Capital One Secured Mastercard also offers access to CreditWise, a free credit monitoring service that allows you to track your credit score and receive alerts when there are changes to your credit report.
2. Discover it Secured
The Discover it Secured card is another great option for people with bad credit. This card requires a security deposit of at least $200, but you can get a credit limit of up to $2,500. The Discover it Secured card also offers cashback rewards on every purchase, including 2% cashback at gas stations and restaurants and 1% cashback on all other purchases.
One unique feature of the Discover it Secured card is that after eight months of responsible use, Discover will review your account to see if you qualify for an upgrade to an unsecured card. This means you may be able to get your security deposit back and continue building your credit with a higher credit limit.
3. OpenSky Secured Visa Credit Card
The OpenSky Secured Visa Credit Card is a good option for people with bad credit who want a simple, no-frills credit card. This card requires a security deposit of at least $200, and the credit limit is equal to your security deposit. There are no rewards or cashback programs with this card, but it does offer a low annual fee of $35.
One advantage of the OpenSky Secured Visa Credit Card is that it doesn’t require a credit check, so even if you have a very low credit score, you may still be able to get approved.
4. Credit One Bank Platinum Visa
The Credit One Bank Platinum Visa is a good option for people with bad credit who want to earn rewards on their purchases. This card offers 1% cashback on eligible purchases, including gas, groceries, and mobile phone services. The credit limit varies based on your creditworthiness, and there is an annual fee of up to $99.
One downside of the Credit One Bank Platinum Visa is that it has a high APR, so it’s important to pay off your balance in full each month to avoid interest charges.
5. Indigo Platinum Mastercard
The Indigo Platinum Mastercard is a good option for people with bad credit who want a simple, straightforward credit card. This card offers a credit limit of up to $300, and there is an annual fee of up to $99. There are no rewards or cashback programs with this card, but it does offer fraud protection and online account management.
One advantage of the Indigo Platinum Mastercard is that it pre-qualifies applicants without affecting their credit score, so you can see if you’re likely to be approved before applying.
In conclusion, if you have bad credit, there are credit cards available that can help you rebuild your credit score. The Capital One Secured Mastercard, Discover it Secured, OpenSky Secured Visa Credit Card, Credit One Bank Platinum Visa, and Indigo Platinum Mastercard are all good options to consider. Remember to use your credit card responsibly by making payments on time and keeping your balance low to improve your credit score over time.