Building or restoring your credit might help you get more favorable treatment from creditors, landlords, and even possible employers. Using a card made with low credit in mind can help those with credit scores in the 300 to 579 FICO range. The top credit cards for bad credit offered by our partners have been selected by us to make it simpler for you to locate one that meets your needs.
If you have a bad credit score, your chances of getting credit cards are much lower. In a way, this is good because it makes it harder for the person to get more credit. Many with bad credit are also having financial difficulties. Therefore, increasing an existing high debt load is not exactly a prescription for financial success.
The difficulty of having limited access to fresh financing sources is another issue. This is because a big part of fixing a low credit score is showing that you know how to handle credit responsibly. It’s a catch-22 since you can’t do this if you can’t get a card.
Financial institutions have developed a remedy since they are aware of this. They provide credit cards that are specially made for people with bad credit. Most of these cards must be activated with a cash deposit, which means they are secured. Most of the time, but not always, the deposit is the same as the card’s credit limit. Additionally, unsecured choices exist. They usually have higher interest rates, though, and you can only get one if your credit score isn’t great but isn’t too bad either.
When it comes to credit card availability, people with low credit scores will have fewer options than typical consumers. However, as some cards are made specifically to assist you in repairing damaged credit, you should still look for the finest offers you can.
Capital One QuickSilverOne Card for Cash Rewards
You can be eligible for a Capital One QuickSilverOne Cash Rewards card if your credit score has been lowered but is not in the lowest range (300 to 579). The most important thing about this card is that you get 1.5% cash back on all purchases. There is an annual cost of $39, but if you spend around $200 a month, you can get that money back through the rewards program. Your cashback earnings are good as long as your account is active and will never go away.
We also enjoy this card because you don’t have to manage to change cashback reward categories, and there are no balance transfer fees. In the case that your card is misplaced, stolen, or unlawfully used, you are also not liable for anything.
Capital One Platinum Mastercard
A 580 credit score is a prerequisite to qualify for this card. This credit card with the Mastercard logo now has a low credit limit and no annual fee. Balance transfers are free, and if you use your card responsibly for five months, your credit limit will automatically go up.
Another benefit is that you can choose when your monthly payment is due. This way, you can make sure it’s due around the time you get paid, so you don’t run into cash flow problems. In the market for low-score credit, the variable annual percentage rate reaches a maximum of 26.96 percent, which is on the higher end of the whole spectrum.
Platinum Mastercard for Indigo
Before applying for the Indigo Platinum Mastercard, you can check online to see if you are eligible. The Indigo system gives you a simple way to keep your credit from getting worse. As you may know, trying to get a credit card and getting turned down hurts your credit score. You are likely to get preapproval because it is available to almost everyone, even those who have recently gone bankrupt.
Once you have the card, all you need to do to go down to a lower interest rate tier is make your payments on time each month. If your credit rating is below 580, this is one to look at since it is recommended by several consumer experts as one of the finest cards for restoring severely damaged credit.
OpenSky Secured Visa
Given that it provides a number of unique features, the OpenSky Secured Visa is a compelling choice. First, account holders can put in anywhere from $200 to $3,000 using a debit or credit card with a Visa or Mastercard logo that is still active. You don’t need a bank account, nor do you need to pay the entire deposit amount in cash upfront. The fact that the card doesn’t require credit checks makes it a safe pick for customers with poor credit scores and those with no credit history at all.
If you pay your bills on time, OpenSky will help you quickly get your credit score back up because it reports to all three major bureaus every month. Although the attractive 19.64 percent annual interest rate is the highest, there is a $35 annual fee for the card. Also, cardholders don’t have the option to switch to a version of the card that isn’t secured. These flaws, however, are rather minor given the positive aspects of the card.
Discover it Secured Credit card
The Discover It Secured credit card is something you might want to think about if you don’t mind using a Discover card, which is widely used but not as universally recognized as Visa or Mastercard. With just a $200 deposit, you can open an account, and the card offers hefty cashback returns of 2% in restaurants and gas stations (up to $1,000 in combined spending per financial quarter) and 1% on all other purchases. Additionally, each bill will show your credit score, making it simple to keep track of your progress.
Although the variable APR reaches a maximum of 25.24 percent, it can be challenging to make balance transfers because your credit limit is restricted to the same amount as your security deposit. But as your finances get better, you can raise your limit by putting down more money. This gives you more options.
Conclusion
As the last point implies, just because you meet the requirements for a credit card doesn’t mean you should take it. Some credit card companies are dishonest and prey on consumers with low credit scores. Think over and contrast terms and circumstances, such as interest rates, grace periods, and late payment penalties, carefully. You should also avoid credit cards that raise your credit limit without telling you. This can lead to spending that gets out of hand. If you don’t take care, you can just end up accruing more debt that you can’t afford to pay off, which is the last thing you need.
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