Best Credit Cards for Bad Credit
It will be difficult for people to get approved for a credit card with a bad credit history due to its poor credit score. How to build and maintain your credit? The only way to solving it is to make the payments every month on a credit card on time. However, most credit cards don’t accept the people with a poor credit history.
The good news is that there are some credit cards specially designed for people who want to build their credit. Secured cards are the best credit cards for people with bad credit. People need to have a cash security deposit equal to the credit line to help themselves build credit and qualify for the unsecured card.
We’ve rounded up a list of the best credit cards for people with poor credit to build up their credit. If you’re looking forward to improving your credit history, take the following recommendations for reference.
- No.1 Capital One® Secured Mastercard®
- No.2 Discover it® Secured Card
- No.3 OpenSky® Secured Visa® Credit Card
- No.4 Citi® Secured Mastercard®
- No.5 primor® Secured Visa Gold Card
- No.6 Digital Federal Credit Union Visa Platinum Secured Credit Card
No.1 Capital One® Secured Mastercard®
- No annual fee
- Access to higher credit line
- Flexible deposit requirement
Pros
Unlike most secured cards, Capital One Secured Mastercard doesn’t require cardholders to make a deposit which equals to their credit line. Besides, people don’t need to come up with the whole deposit upfront. However, people will have a credit limit of $200 for the deposit of $49, $99, $200 depending on the credit score. This card gives cardholders access to a higher credit line without depositing money when making the first five payments on time.
Cons
People who want to own this card need to have a checking or savings account. For individuals who have a severely damaged credit won’t be qualified for this card.
Summary
Capital One Secured Mastercard will be a great option for people whose credit is not severely damaged. If you are searching for a good credit card for bad credit, take this card for reference.
No.2 Discover it® Secured Card
- No annual fee
- Great cash back rewards
- Clear upgrade process
- Good bonus offer
Pros
For people with bad credit, the Discover it Secured Card will be the best credit card available due to its benefit of no annual fee. Aside from that, it also offers great rewards: 2% cash back when spending up to $1,000 per quarter on restaurants, gas and 1% on other expenses. Cardholders will have an opportunity to upgrade to an unsecured card if they take responsibility of the Discover it Secured Card for eight months.
Cons
People who want to use this card need to get access to the traditional financial services because they have to pay the initial deposit with a bank account. They cannot use Discover it Secured Card if they are not lucky to enjoy the traditional financial services.
Summary
The rewards and bonus of this secured card for bad credit is even better than those of the unsecured cards for people with good credit.
No.3 OpenSky® Secured Visa® Credit Card
- No credit check
- Low annual fee
- No applications fees
- Easier approval
Pros
OpenSky® Secured Visa® Credit Card enables people to qualify even with badly damaged credit because it doesn’t require the credit check, unlike most other secured cards. However, people who issue this type credit card have to meet the income standards. Meanwhile, people don’t need a bank account to set this card separate from other secured cards. They can use the debit card to make the deposit, payment, transfer or order.
Cons
The only disadvantage of this card is it cannot be upgraded to an unsecured card.
Summary
For people who are working to rebuild credit, as well as for those without access to traditional banking services, the OpenSky Secured Visa Credit Card is an excellent choice.
No.4 Citi® Secured Mastercard®
- No annual fee
- High credit limit
- Reasonable APR
- Solid fringe benefits
Pros
For people with bad credit history, this card may be the best option with which people don’t need to have the credit check. Unlike most secured cards, this card report to all three credit bureaus including Experian, Equifax, and TransUnion which ensure the good credit behaviors be noticed. Furthermore, this card offers more perks than other cards, like the rental car insurance, purchase protection, travel accident insurance and warranty coverage.
Cons
This card may not be proper for people with marred credit. For instance, it may deny your application if you once had a bankruptcy in the past two years. Unlike the Digital Federal Credit Union Visa Platinum Secured Credit Card, this card requires the balance transfer and cash advance fees.
Summary
If you are trying to rebuild your credit history, the Citi Secu
No.5 primor® Secured Visa Gold Card
- No minimum credit score requirements
- Fast, easy application process
- no penalty rate
Pros
With Primor Secured Visa Gold Card, people don’t need to pay the processing or application fees, which will save them a great amount of money. Besides, the interest rate is very low, especially for people who happen to have a balance. People will get the fast and easy services when applying and waiting to be approved for this card with the bad credit history. The greatest advantage of this card is that people can earn interest on the money they deposit in the savings account.
Cons
People must pay Primor Secured Visa Gold Card with $49 annual fee which is slightly larger than most other cards. Another point which will disappoint people is that people cannot withdraw money from the savings account without the consent of the card. Moreover, cardholders cannot get rewards when making purchases with this card.
Summary
Primor Secured Visa Gold Card is proper for people who carry out the monthly payments on time, especially for the people who have a balance. The low 9.99% fixed APR makes it an ideal card for people who don’t pay the full balance at the end of the month and also want to improve the credit score.
No.6 Digital Federal Credit Union Visa Platinum Secured Credit Card
- No annual fee
- No cash advance fee
- Lower ongoing APR
- No balance transfer fee
- high credit limit
Pros
The ongoing APR 12.5% is almost half the rate of most popular secured cards. Meanwhile, you can get more rewards here than many unsecured cards. What attracts cardholders most is that this card requires no annual fee and 0 balance transfer/cash advance fees. Unlike most secured cards, this card doesn’t require the security deposit equal to your credit limit.
Cons
Starting to use this card, firstly you need to be a member of Digital Federal Credit Union. However, there are many ways to become a member. Therefore, it will be a disadvantage of this card, which makes it a hoop to jump through.
Summary
You had better pay the bill of your credit card on time every month, especially when trying to rebuild your credit. However, the Digital Federal Credit Union Visa Platinum Secured Credit Card will still be less expensive than other secured cards if you must have a balance.