Best Credit Cards For Bad Credit
Does your credit score fall somewhere between 300 and 639? Do you want a credit card, but you’re not sure if a lender will ever approve you?
You might be surprised at just how many options you have regarding credit cards specifically for people with bad credit, or how many come low to no annual fees and even some rewards.
Secured credit cards give you the highest chances of approval, and aside from an initial deposit that the lender holds as collateral and minimal fees, they’re a great way to start building your credit. As you use it, the issuer reports your payment history to the three major credit bureaus. If you stay on top of your monthly bills and don’t make any late payments, your credit score will rise, and you can upgrade to an even better card.
If you want a credit card and don’t know which one to choose, check out WalletHub’s list of the best credit cards for bad credit.
Discover it Secured
WalletHub ranked the Discover it Secured card as the top choice for people with bad credit because it offers much more than other secured cards. Like most secured credit cards, it comes with a $200 deposit, but that’s easily offset by the money you save with no annual fee and 2% cash back up to $1,000 in dining and gas purchases. And for your first year, Discover will double all of your points for even more savings. Not many secured cards have these perks, so that’s why the Discover it Secured card stands out.
Credit One Bank Visa Credit Card
What makes the Credit One Bank Visa Credit Card stand out is that it doesn’t require a deposit. It’s one of the best cards for building your credit because you get a $300 line of credit without having to pay a deposit, which also makes it one of the cheapest options on the market. And depending on your credit score, you pay an annual fee between $0 and $99.
OpenSky Secured Visa Credit Card
There are many reasons why you wouldn’t want the lender to do a credit pull when you apply for a credit card. Maybe you don’t want your rating to take a hit from a hard credit inquiry, or perhaps you’re afraid it will scare the lender away. Whatever the case, you should check out the OpenSky Secured Visa Credit Card. It comes with no credit check, so you’re almost guaranteed approval. It has a $200 deposit, but only a $35 annual fee.
Citi Secured Mastercard
Hidden fees don’t do you any favors, especially if you’re on a strict budget. The Citi Secured Mastercard makes it easier to follow your budget and build your credit because it has zero fees. There’s no annual fee, maintenance charges, or anything else. The only thing you pay is the $200 deposit.
Capital One Secured Mastercard
The Capital One Secured Mastercard is one of the affordable secured cards available because it has no annual fee, plus you only pay a $49, $99, or $200 refundable deposit to receive a $200 line of credit.
Indigo Master Card For Less Than Perfect Credit
There’s bad; then there’s less than perfect. For those people, there’s the Indigo Master Card For Less Than Perfect Credit. Like the Credit One Bank Visa Credit Card, you pay $0 to $99 annually, depending on your credit score. And since there’s no deposit, you can get it for free or next to free.
How To Apply For A Secured Credit Card
- Pay outstanding balances because many creditors won’t accept your application if you still owe money to someone. Not only that, but many experts advise against getting any credit card before getting out of debt.
- Shop for the card with the lowest fees and rates because it will make it easier to manage your costs, pay the entire balance each month, and focus on building your credit.
- Look for a card with a high approval rating and minimal deposit amount. Lenders are more likely to approve applications for secured cards, but some factors in your credit history may lead to rejection. Consider a card like the OpenSky Secured Visa Credit Card, which doesn’t require a credit inquiry.
- “Apply for the Best Credit Cards for Bad Credit: Read User Reviews and Compare Credit Cards for Bad Credit.” WalletHub, wallethub.com/credit-cards/bad-credit/.