Top 5 Credit Cards for Poor Credit
Using a credit card responsibly is a great way to fix your credit, but if you have bad credit, you might assume that it will be hard to get approved for a credit card in the first place. It can seem like a bad situation to be in if you are trying to build credit after bankruptcy or if you just have a low score and would like to bring it up, but luckily, there are credit cards out there that are perfect for those with poor credit. These are a few of the best.
Capital One Secured MasterCard
One of the best options for those who have bad credit is the Capital One Secured MasterCard. As with other secured cards, you will be expected to make a security deposit. However, this card is a bit unique from some of the other secured cards that are out there.
With most secured cards, your credit limit is equal to the amount that you deposit, period. In some cases, though, Capital One gives customers a higher credit limit than their initial deposit. The minimum deposit will be either $49, $99 or $200. This is based off of just how bad your credit really is.
These are some of the top benefits of this card:
- The Capital One Secured MasterCard has no annual fee. Since many secured cards charge rather high annual fees, this is a big plus for this card.
- You do not have to pay your entire deposit at one time. Instead, you have 80 days after opening your account to do so.
The goal of opening up a secured card is often so that you can improve your credit score and eventually qualify for a card without a deposit. Some secured cards do not offer this option, but once you establish a good history with Capital One, you may qualify for a higher credit limit without being required to make an additional deposit.
Credit One Bank Unsecured Visa
The Credit One Bank Unsecured Visa is unique in that it is designed for individuals with bad credit but is not a secured card. Here are some of the perks of this card:
- You do not have to make an initial deposit in order to get approved for this card, even if your credit score is low. With so few unsecured options out there for individuals with bad credit, the Credit One Bank Unsecured Visa is very unique.
- The website allows you to pre-qualify, so you can get an answer in just one minute.
- Credit One Bank offers flexible payment dates. You do not have to worry about your credit card payment being due on the same day as your mortgage, for example. Instead, you can request a certain payment date that is more suitable for you.
- In many cases, rewards are only available on credit cards for people with good credit. However, Credit One Bank’s card is unique because it does offer one percent in cash back on gas and grocery purchases. This can really add up if you use this card for everyday use.
- Credit One Bank reports payment history to all three credit bureaus, so you can build your score by making payments on time.
- You may be able to score a credit line increase after establishing a good payment history.
Milestone Gold MasterCard
No list of credit cards for people with bad credit would be complete without the Milestone Gold MasterCard. These are a few perks of this popular card:
- Even some bad credit credit cards are not an option for people with a previous bankruptcy, but Milestone Gold MasterCard does approve applications for people who have filed bankruptcy in the past.
- You can pre-qualify online without worrying about an impact on your credit score, and you can get a fast answer.
- This credit card has free online access, making it easy for you to keep track of charges on your account and to pay your credit card payment online.
Digital Federal Credit Union Visa Platinum Secured
You do have to be a member of the Digital Federal Credit Union in order to apply for this card, but the good news is that you can do so easily; all you have to do is make a one-time donation to one of the credit union’s list of eligible charities. These are a few reasons why it might be worth it to do so and to apply for this card:
- There is no annual fee with this card, which is uncommon among secured credit cards.
- The interest rate on this card is relatively low, currently at 11.75% variable.
- This card reports to all of the major credit bureaus, allowing you to rebuild your credit if you pay your credit card bill on time each and every month.
- Unlike with many secured credit cards, you can actually earn interest on your deposit while it sits in savings. Even though the interest rates aren’t high, it is still a little something.
OpenSky Secured Credit Visa
As yet another secured credit card, the OpenSky Secured Credit Visa is easier to obtain than many of the other bad credit credit cards. These are a few perks of this card:
- Even many secured credit cards require you to have a bank account. This is not a requirement for the OpenSKy card.
- OpenSky does not perform a credit check at all, so you do not have to worry about being denied because of anything on your credit report, and you do not have to worry about a “hard pull” making your score go down.
- If you would like a card with a higher credit limit, such as one that you can use while you are traveling, the OpenSky card is a good choice. You can start your account with a deposit of anywhere from $200 to $3,000, but once you have the card, you can increase your limit to $5,000 at any time. Since many secured cards come with rather low limits, even when secured by your deposit, this can be a good thing for those who need a little more spending power.
- OpenSky reports to all three major credit bureaus, making it possible for you to build your score up fast.
It’s true that it can be challenging to find a credit card when you have bad credit, but you shouldn’t give up on getting a card. First, you may want to apply for an unsecured option, which will not require you to put down a deposit. However, even if you do need to put down a deposit, a secured card can help you achieve your goal of rebuilding your credit while also allowing you to enjoy the benefits of a credit card, such as using it to pay for things when you are traveling. If you check out these top five credit cards for poor credit, you’re sure to find one that is right for you