Finding a bad credit credit card, when you have poor credit, can be difficult. That doesn’t mean it’s impossible. Today, we’ll give you an overview of credit card companies that work with borrowers that have less than perfect credit.
If you have bad credit, you should only look to get a credit card if you want to rebuild your credit. Secured credit cards are a great way to rebuild your credit. You’ll have to deposit money into the account, but the goal should be to use the card responsibly and pay the balance off every month.
By doing this, you are proving to creditors that you are financially responsible. After 6 months of using the card and paying it off every month like clockwork, you should receive an offer for an unsecured credit card. The initial amount you can charge won’t be very high, but if you follow the same strategy you use for the secured card, the creditor will gradually increase your credit limit.
That said, here are a few creditors that have credit cards for bad credit:
Discover it® Secured
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With no annual fee and a modest deposit of only $200, you can have a secured credit card. On top of that, you can get up to 2% back on eligible purchases. Use this card for everyday purchases, but make sure you pay the balance off every month. This will help you rebuild your credit and, eventually, become eligible for unsecured credit cards.
Credit One Bank® Platinum Visa
Emergency expenses come up and when they do, a secured credit card from Credit One Bank may be your best option. Instead of a high APR loan, try applying for this card; it will be much cheaper in the end. You can get up to $225 of an immediate credit line, after paying the $75 annual fee. If your emergency expense is $200 or less, this is the way to go. Not only that, but you’ll be rebuilding your credit.
Capital One® Secured Mastercard®
Limited credit? No credit history? The Capital One Secured Mastercard may offer hope. It’s made specifically for people with a limited credit history. It has a $0 annual fee and offers an initial credit line of $200. On top of that, you can get started with a security deposit as low as $49, if you qualify. Bonus: Capital One reports to all 3 major credit bureaus. So rest assured, this card will also help you rebuild your credit.
Indigo® Secured Mastercard®
Another great secured credit card for people with bad credit. The annual fees and initial deposit are a bit more than the cards above, but it’s excellent for rebuilding credit. Annual fees start at $99. It’s also a great option to have this card on hand if an emergency expense comes up. You won’t have to deal with high APR loans, and potentially, digging yourself deeper into debt.
Check back soon for more secured credit cards that help you rebuild credit, or that you can use for emergency expenses that come up.
Are there any credit cards you’d recommend? Let us know in the comments!