A high number of the American population is so indebted. We are talking about hundreds of billions of dollars on credit card debts. Having good credit can open several work opportunities. On the other hand, having a bad credit does not only limit opportunities but also leaves a wrong impression in your records.
However, there are still a few credit cards that might help you build a better credit score. You must consider several factors before you get one of these credit cards. Comparing available credit cards for those with bad credit is one step to making the right pick. Remember, you want to rebuild your credit from scratch. You aim to fix credit mistakes you did in the past. With that, you are creating a new path for a better financial future for you and your family.
It is important that you are keen in choosing the best credit card for you. There are three things to consider:
1. A credit card that offers pre-qualification checks,
2. It should provide low upfront fees, and
3. Reports to all three credit bureaus.
Here are some of the credit cards that are best for bad credit:
1. Low-Security Deposit: Capital One Secured MasterCard
Allows each holder to make a minimum security deposit of $49, $99 or $200 credit limit. Your credit history will determine if you are qualified for the lower security deposit amounts. A bank account is required to pay your security deposit.
Capital One will consider holder for an automatic credit limit increase without an additional security deposit when holder makes monthly payments on time for the first five (5) months.
Accesses to CreditWise, a free credit monitoring tool that will help you stay on top of your credit score. The Annual Percentage (APR) is 26.99%, and there is no annual fee.
2. For No Credit: First Progress Select MasterCard Credit Card
This does not require any would-be cardholders to have a credit history or minimum credit score.
It is issued by three (3) banks, namely, Synovus Bank, Columbus, and Georgia. All three banks are members of the FDIC.
Reports to the three major credit bureaus that will help you build your credit score.
There’s a minimum security deposit of $200 for approval. The Annual Percentage rate (APR) is 14.49%, and the annual fee is $39.
3. For No Bank Account: OpenSky Secured Visa Card
Allows each cardholder to make a security deposit from $200 to $3,000 to secure your credit limit. You can use Visa or MasterCard debit to pay your security deposit, an advantage since many secured card issuers require you to have a bank account.
After your account is opened, you may request an increase in your credit limit for OpenSky. The APR is 19.64%, and the annual fee is $35.
4. Top-Tier Secured Credit card: Citi Secured MasterCard
This card is issued by Citi– one of the major credit card issuers. A good management account with your credit card may qualify you for their better credit cards.
Each cardholder can make their security deposit between $200 and $2,500 at the time you make an application.
Deposits go to the “Collateral Holding Account” for 18 months.
The APR is 24.74%, and there is NO annual fee.
5. For Money Saving: Total Visa Unsecured Credit Card
Just pay a one-time fee of $89 to open your account. The Initial credit limit for Total Visa Credit Card is capped at $300.
Moreover, this card has an APR of 34.99% with an annual fee of $75 for the first year and $48 for the following years.
Making your monthly payments on time, keeping your credit card balances low and monitoring your credit for positive changes are the key factors to using your credit cards to your advantage.