top 12 Best Credit Cards for people with Poor Credit
Are you struggling with poor credit scores? Do not let your credit scores stop you from getting a credit card. There are several options for you to choose from and you cannot go wrong when you have all the right information. We do not want you to make mistakes when choosing a credit card simply because the options were limited.
Here we have researched into credit card companies that issue credit cards to people without considering their credit scores. Although there are several credit card options for people with bad credit, some of the options stand out more. They have better rates and you have better chances of building your credit history with such cards. Here is a list of these card options.
Capital One Secured MasterCard
- Capital One Secured MasterCard is one of the best card options for people with bad credit scores. There is no annual fee and the variable APR is 24.99%. If you have a credit score that ranges from 350 to 629 you are likely to qualify for this credit card. The Capital One Secured MasterCard can help you to strengthen your credit history. The credit card company reports to the three main credit reporting companies (TransUnion, Experian, and Equifax) and when you pay up your minimum balance before each billing cycle ends, you will be building your history. Since this card is a secured card, you will need to make a cash deposit along with your application. The amount you will provide will depend on your creditworthiness. In some cases, you will be required to make a $49 deposit. You may also make a $99 or $200 deposit to access the credit card. The initial line of credit is $200 but you may be eligible for an increase if you use your card responsibly for the first five months. When they increase your line of credit, you will not be required to make an additional deposit. Unfortunately, people with a bankruptcy history cannot apply for this credit card. You will also need to check or savings account to apply for this card. You can access your account at any time through the mobile app.
Discover it Secured Cards
With this card too, the annual fee is waived. The variable APR on this card is 24.99%. Fortunately, you will pay a low APR for balance transfers for the first six months. The intro balance transfer rate is 10.99%. you will need a credit score that ranges from 350 to 629 to qualify for this card. One of the winning points of this credit card is the rewards it offers. You will enjoy 2% cash back rewards on gas and restaurant purchases up to $1,000 every quarter. You will also enjoy 1% cash back reward on all other purchases. If you use your card responsible for the first eight months, you will be eligible for an increase in your credit limit. There is also a possibility that your card will be upgraded to an unsecured card. You will need to provide a bank account to get access to this card since the initial deposit must be paid with a bank account. You will also receive free social security alerts when you use this card. Discover will also match all your cash back rewards automatically. There is no need for you to sign up for this.
OpenSky Secured Credit Card
OpenSky presents a good credit card option for people who want to build their credit history. Making regular payments when you use this card can help you to build your credit history. The annual fee charged on this card is $35 and the variable APR is 19.14%. When you apply for this card, there is no credit check. However, there is an income check that requires that you meet a certain income level. This level is not high, they just need to confirm that you can pay your balances. You do not need a bank account to access this credit card. They offer several ways for you to make payments and these make it convenient for you to pay your balance. You can pay your balance by wire transfer, money order, check, or debit card. You will need to make a cash deposit to get this card. This cash deposit is refundable. The minimum cash deposit is $200 and the cash deposit determines your credit limit. A high cash deposit means a high credit limit. OpenSky offers credit education to customers through its website. There is a Facebook page that has been dedicated to cardholders. They can share their insights and experiences on this page. Unfortunately, there is no opportunity for you to upgrade the card to an unsecured card.
Digital Federal Credit Union Visa Platinum Secured Credit Card
This card is known for its low fees and interest rates. There is no annual fee when you get this card. The variable APR is as low as 13.25% which does not happen often. There are no balance transfer fees, and there are also no cash advance fees. Since the card is a secured card, you will be required to make a cash deposit. This credit union does not put a limit on the amount you can deposit. The amount you will provide a cash deposit will determine your credit limit. Since there is no cap on the cash deposit, you can deposit as much as you want to increase your credit limit. This credit card is compatible with Apple Pay, Samsung Pay, and Google Pay. Other benefits that come with holding this card include car rental, travel, insurance, and warranty. The card features an embedded EMV chip that will help protect your information. With this card, you must be a Digital Federal Credit Union member to get this card. Fortunately, there are several ways to become a member.
First Progress Platinum Elite MasterCard
This is another secured card that offers cardholders all that they need in a credit card. You will get your card more quickly with the New Expedited Processing Option. Your credit history or credit card is not required when you apply for this card. You can use The First Progress Platinum Elite MasterCard at locations where credit cards are accepted. They report to the three main credit reporting bureaus, which mean regular payments can help you strengthen your credit history. You will need to make a cash deposit that ranges from $200 to $2,000 to get this card. The cash deposit is refundable; you only need to pay off your balance to get your deposit back. You can access your account at any time by logging online. The annual fee charged on this card is $29. The variable APR is also 20.24%. You will pay a cash advance rate of 3% or $10 whichever is bigger. If you are late on payments, you will pay a late fee up to $38. The foreign transaction fee is 3% of the transacted amount.
Total VISA Unsecured Card
The application process for this card is easy and simple. When you apply, you will receive a response in no time. This card is accepted at all locations where VISA cards are accepted. The monthly payments are manageable. When you are approved for this card, you will need to pay an $89 processing fee to open your account. You will also get to choose a unique card design for your card. The Total VISA card can help you to build your credit history. You will only need to pay your balances on time and your credit history will improve. This is possible because they report to the three main credit reporting bureaus. You should note that the initial credit limit on this card is $300 and you should be cautious when making huge purchases. This limit is likely to increase if you use your card responsibly.
Indigo Platinum MasterCard
The Indigo Platinum MasterCard is another card that is popular among people with poor credit. The annual fee on this card ranges from $0 to $99. The APR on this card is 23.9% and you can check if you pre-qualify for this card without impacting your credit score. You can apply for this card even if you have a bankruptcy history. You will enjoy protection against fraud even if you lose your card. Genesis FS Card Services does not make you responsible for unauthorized charges. You can get free online access to your account at any time. This card is accepted in over 35 million locations worldwide. Since this is an unsecured card, you will not make any cash deposits to get the card.
Milestone Gold MasterCard
- You can easily check if you qualify for this card without impacting your credit score. When you apply to see if you pre-qualify, you will receive a response quickly. You can choose a custom design for your card at no extra cost. When you apply for this card, you will get a free access to your account. You will not be charged when unauthorized charges are made to your card when you lose the card. You can apply for the Milestone Gold MasterCard even if you have a bankruptcy history. The annual fee charged on this card ranges from $35.00 to $99.00 In the first year, you may qualify for a lower annual fee depending on your creditworthiness. The APR is also 23.90%. you may also need to pay an opening fee of $5, $25, or $50. When you add authorized user to your card, you will pay a fee of $25. A late payment can also attract a fee of up to $38.00 You get to enjoy $0 cash advance fees for the first year. The foreign transaction fee on this card is $1.00.
USAA Secured Card American Express
This card is a good option for people who want to build or establish their credit. This card attracts low rates; the APR ranges from 11.90% to 21.90% and depends on your creditworthiness. This APR is applicable to purchases, cash advances, and balance transfers. There is no penalty APR when you get this card. The annual fee is $35.00 and there is no foreign transaction fee. You can pay up to $35.00 when you make late payments. You will pay 3% of the transacted amount when doing a balance transfer or a cash advance. Unfortunately, this card is available to active and former military members and their family members.
Fingerhut Credit Account
The application process is easy and fast. You will get a credit decision in minutes. You can build your credit history with this card since they report all three credit reporting bureaus. With this card, you can make purchases at several major brand shops including Samsung, KitchenAid, Sony, Adidas, Black and Decker, DeWalt, and LG. Since this is an unsecured card, you do need to worry about cash deposits. The penalty fees charged by this card include late fees. You can pay up to $38 when you make fees.
When you get this card, do not waste the opportunity to repair your credit history. A good credit history can take you a long way. It can help you to get credit cards with lower fees and better rewards. Although the above cards are considered to be the best for bad credit, you should consider certain factors before concluding on one card.
You should consider the APR on the card. Some cards charge $0 as APR while others charge hefty amounts. You should weigh the benefits you will receive against the APR you are required to pay.
One thing that is important to people with poor credit is building their credit history. You should make sure that the card you have chosen can help you to build credit. You can easily check this by confirming if the credit company reports to the three main credit bureaus.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.