When you have bad credit, it can be difficult to get a credit card – and it is easy to get stuck in a negative financial cycle. Without the opportunity to rebuild your credit, you will have a hard time raising your score. But what you may not realize is that you can still find credit cards for bad credit.
If your credit is less than perfect, but you’re looking to rebuild your financial livelihood, then a pre-approved credit card may be perfect for you. Unlike standard credit cards, which will require an extensive application and credit check, pre-approved, starter credit cards are available to those with no or limited credit.
Though these cards commonly carry high APRs and sometimes require yearly charges and/or security deposits, they can be a helpful option for those hoping to rebuild their credit.
The following are some of the best credit cards for bad credit.
OpenSky Secured Visa
The OpenSky Secured Visa is a secured card, and it does not demand a credit check. The person who is opening the account can choose their credit line, and can then make their refundable deposit based on their amount. One of the biggest advantages of this card is the fact that since there is no credit check, a hard pull isn’t going to affect your score.
Credit limits range from $200 to $3,000. OpenSky reports to all the 3 major credit bureaus each month, which helps improve users’ scores.
There is an yearly fee of $35, and the APR is around 19.64%. The card has all the perks of a traditional Visa. According to the company, 99 percent of customers who started without a credit score built their score in as few as six months.
Credit One Bank® Platinum Visa® for Rebuilding Credit
Credit One Bank specializes in offering cards to people who either do not have a credit history or who don’t have great credit. One of the options is the Credit One Bank® Platinum Visa® For Rebuilding Credit.
What is good about this card is that it allows qualified applicants to earn 1 percent cash back on all purchases, and the rewards post to their account each month.
Account holders can monitor their credit score for nothing. Because it is a Visa card, it has all the standard benefits of any other Visa card. The yearly fee for this card varies from $0 – $99. The purchase APR is 19.74%–25.74% variable.
Discover it Secured
The Discover it Secured Card requires a refundable security deposit. This card has no yearly fee, and the standard variable purchase APR is 25.24%. With this card, users can get a free Social Security number alert to help protect their identity.
With the Discover it secured Card, users can also check their FICO Credit Score for free online and on statements.
One of the best things about this card is that account holders can earn 2 percent cash back at restaurants or gas stations on up to $1,000 in purchases every quarter, and 1 percent cash back on every other purchase. The company matches all your cash-back earnings at the end of your first year after opening the account also.
Indigo® Platinum Mastercard® Credit Card
The Indigo® Platinum Mastercard® Credit Card is a popular option for people who have bad credit score. The card features a pre-qualification option that does not impact the applicant’s credit score. The company reports to all the three major credit bureaus.
The Indigo® Platinum Mastercard® Credit Card features fraud protection that might come with typical a Mastercard. Even people who’ve had a bankruptcy may qualify.
Merrick Bank Double Your Line Visa Credit Card
The Merrick Bank Double Your Line Visa Credit Card lets users double their credit line if they make an on-time minimum payment every month for the first seven months after opening their account. After that, the credit line increases automatically.
There are no penalty charges, and pre-qualification will not show up as a hard pull on your credit report. You can also check your FICO score monthly with this card.
Milestone Gold Mastercard®
The Milestone Gold Mastercard® isn’t a secured card. You can see if you pre-qualify before submitting an application. Most cardholders receive a $300 limit when they are first approved. However, consider that their yearly fees range from $35 – $99*.
The yearly fee is waived in the first year and ranges from $35 – $99* subsequently. The Milestone Gold Mastercard® comes with the Mastercard Gold Benefits.
Green Dot Platinum Visa
The Green Dot Platinum Visa is a secured card specifically and specially designed for establishing or rebuilding credit. The required, refundable security deposit can be as low as $200 to get a credit line, and a bank account is not required.
Usage and payment history is reported to the major credit bureaus, and users can go to some participating retail stores to make deposit.
The APR for the Green Dot Platinum Visa is 19.99%, which is comparatively low. The yearly fee is $39, and credit limits range from $200 to $1,000.
DCU Visa Platinum Secured Credit Card
The Digital Federal Credit Union gives this secured Visa Platinum Secured Credit Card. It allows account holders borrow against their savings account with DCU, and there’s no yearly fee.
The USAA Secured Platinum Visa has a yearly fee of $35, but no foreign transaction fee and no penalty APR. The variable APR ranges significantly with this card though it starts on the lower end, ranging from 11.65% to 21.65%.
The card offers unique features for military recruits, security protection, and no liability. Account holders receive a free credit score also. When users apply, they can choose their credit limit based on their security deposits. Deposits can range from $250 to $5,000. Unlike a lot of cards, the security deposit also earns interest.
Citi Secured Mastercard
The Citi Secured Mastercard lets users deposit for security from $200 to $2,500, giving account holders a higher credit line than what is offered with many other secured cards.
There are credit requirements for approval for this card, which includes a review of debt and income. The card has a variable purchase APR of 24.74%. To qualify for this card, account holders must not have had any bankruptcy in the past two years. This card has no yearly fee.
There are many credit cards, but these are some of the best choices. You can do the comparative analysis of credit cards based on the types mentioned above and their features and perks, then choose the right option for yourself.