If you have a credit rating lower than 630, then you need to rebuild your credit score. One of the best ways to do so is by using credit cards for bad credit, as these usually have low fees and some even offer rewards. Additionally, all significant credit cards for individuals with bad credit account information to the credit reporting agencies each month. That is why using the credit card that is right for you is one of the best methods to rebuild credit.
The ideal credit card for the majority of individuals with terrible credit will be a secured card. Secured credit cards charge the lowest prices and extend the very best approval chances. But if you want to have extra credit available, then you are going to need to compare bank cards for individuals with poor credit.
7 Best Credit Cards for Bad Credit
1Discover it® Secured
The very best credit card for bad credit is your Discover it ® Secured card. This secured credit card comes with some solid benefits:
- $0 annual fee
- Provides 2% cash back on gas stations and restaurant purchases (up to $1,000 spend per quarter)
- Provides 1% cash back on all other purchases
Cardholders earn 2% cash back back on up to $1,000 spent at restaurants and gasoline stations every quarter, and 1% back all other purchases. The Discover it ® Secured card will not demand a $200+ security deposit, but a deposit is required by all the best bad-credit charge cards.
2Indigo® Mastercard® for Less than Perfect Credit
Indigo® Mastercard® offer a pre-qualification alternative in which you can get a decision in 60seconds without impacting your credit score. The yearly fee of the card is $0 depending on your creditworthiness. You can choose the design of your credit, making this option a funky one!
3Credit One Bank® Platinum Visa®
For those that must borrow cash whilst fixing their credit, the ideal credit card with no deposit would be your Credit One Bank® Platinum Visa®. It has an annual fee between $0 – $99, based on an applicant’s creditworthiness. It also gives you 1% Cash Back rewards on everyday purchases while giving you credit line increase opportunities.
4Capital One® Secured Mastercard®
This credit card provides you with an initial credit line of $200 with the chance to increase it after making 5 monthly payments. It does not have a yearly fee, which makes the Capital One® Secured Mastercard® a great alternative for building your credit back.
5OpenSky® Secured Visa® Credit Card
If you’re in need of a credit card without a credit check, OpenSky® Secured Visa® Credit Card is the option for you. They have a low annual fee of $35 and require a security deposit of $200.
6Green Dot Visa® Secured Credit Card
If you have no credit and no bank account you need to consider the Green Dot Visa® Secured Card into one of your options. You can fund your account with $200 and go up to $5,000 depending on your deposit. Their annual fee is $39 fee, but it lets you build credit over time.
7Citi® Secured Mastercard®
The Citi® Secured Mastercard® is one of the best options if you’re looking for a credit card with no annual fee to rebuild your credit. It requires a minimum security deposit of $200.
Overall, if you want to rebuild your credit without inquiring in extra costs your best options are secured cards with no annual fee. That is true for everybody with bad credit, except individuals who desire to have emergency loans.
Below you can find out more about what to keep in mind when deciding on a credit card when you have bad credit.
How Do You Get a Credit Card With Bad Credit?
- Don’t have late payments: Many credit cards will not accept applicants with current delinquencies. Make sure you have everything sorted before applying.
- Look for high approval rates: Concentrate on cards with high acceptance chances. Secured credit cards give the greatest likelihood of acceptance. This is mainly because they ask that you put a security deposit that functions as your own credit line.
- Make sure to compare all fees: Low-cost credit advancement should be your top priority. 1 way to keep prices down is to locate a card with low (or no) yearly fees, monthly charges and one-time charges. Another would be to always pay your bill.
- Don’t asume you’ll get approved just by giving a deposit: Do not presume secured means guaranteed acceptance. Secured cards offer you the closest thing you can get to guaranteed acceptance, but many will still carry out a credit rating report. If you are worried your chances of approval are slim to none, go with a guaranteed option at OpenSky® Secured Visa® Credit Card that does not require a credit check.
Secured credit cards will be the easiest option since they require to be backed by a security deposit. This gives the lender less risk in approving you a credit card. If you want an alternative that does not require a credit check you can try OpenSky® Secured Visa® Credit Card.
If you have a credit score of 550 you need to rebuild your credit. The best option is to go with secured credit cards, since they require a security deposit, the chances of approval will be higher.
The best alternative is a secured credit card. You can try out any of these:
Discover it ® Secured Card
Citi® Secured Mastercard®
Green Dot Visa® Secured Card
OpenSky® Secured Visa®
Capital One® Secured Mastercard®
Credit One Bank® Platinum Visa®