Best Bad Credit Cards to Help You Rebuild Your Credit
If you have bad credit, it can be difficult to find a bad credit card that is right for you. Many of the best cards are off limits, and the ones that are available often come with high interest rates and fees. However, there are some good options out there for people who are looking to rebuild their credit. In this blog post, we will discuss some of the best bad credit cards in the United States. We will also talk about how these cards can help you improve your credit score over time.
What is a bad credit score?
In the United States, a bad credit score is typically considered to be any score that is 600 or below. If your score falls in this range, it means you have made late payments or defaulted on loans in the past, resulting in negative marks on your credit report.
Types of credit cards for bad credit
Below are the different types of credit cards for bad credit;
Secured credit cards
A secured credit card is a good option for those with bad credit, as it requires a deposit to open the account. The amount of the deposit usually depends on your credit limit, which can be quite low. These cards are designed to help you build or rebuild your credit score by reporting your activity to the major credit bureaus each month.
Unsecured Credit Cards
An unsecured card does not require a security deposit and often comes with higher limits than secured cards. However, these types of cards typically come with higher interest rates and stricter eligibility requirements since they carry more risk for the issuer.
Prepaid Debit Cards
Pre-paid debit cards are not actually credit cards, but they can provide a way to improve your credit score if used responsibly. When you use a debit card, the company reports your activity to the credit bureaus each month, helping you build or rebuild your score over time.
How to choose the best bad credit card for you
Choosing the right bad credit card for you depends on your individual situation and needs. Here are some things to consider when selecting one:
Fees and Interest Rates
Make sure to look at all of the fees associated with a card before applying, such as annual fees and interest rates. You want to find one that has low fees and a reasonable interest rate so that you don’t end up paying too much for your card.
Rewards and Benefits
Some cards offer rewards or other benefits that can be helpful when rebuilding your credit score. Look for a card that has incentives such as cash back or travel rewards, so you can get the most out of using it.
Credit Limit
Make sure to find a card with a reasonable credit limit that fits your needs. Remember, if you go over your limit you may end up incurring fees and interest charges, which could further damage your credit score.
Annual Percentage Rates (APRs)
The APR is the amount of interest that you will be charged for using your card. Make sure to find a card with a reasonable APR so you don’t end up paying too much in interest over time.
Credit Score Requirements
Some cards have minimum credit score requirements that you must meet in order to be approved. Make sure to read the fine print and determine if you qualify for a particular card before applying.
Best Bad Credit Cards to Help You Rebuild Your Credit
Below are the top bad credit cards you can choose from;
Capital One Secured Mastercard
With this card, you can make a security deposit of up to $200 to qualify, and if you make your payments on time and keep your account in good standing, Capital One will review your credit line each month with the potential to increase it without making an additional deposit. The card also has no annual fee and includes access to your Experian Credit Score every month – giving you insight into how your credit score is changing over time.
OpenSky secured Visa Card
This is another great option for people with bad credit. Unlike other cards, there are no credit checks required to get this card – meaning anyone can be approved regardless of their credit history. It also has no annual fees and the option to have your credit limit increased after 12 months of on-time payments. The card also comes with access to financial education tools to help you understand how credit works, as well as other options like balance transfers and cash advances.
Credit One Bank Unsecured Visa Card
This card is a great option for people who don’t want to put down a security deposit but still want a chance to rebuild their credit. It offers a competitive APR, rewards points for purchases, and automatic account reviews every six months – potentially allowing your credit line to increase without any additional deposits or fees. There is an annual fee for this card that varies based on your creditworthiness, but it does come with fraud protection and access to your Experian Credit Score every month.
Discover it® Secured Credit Card
This card is perfect for those who are looking to rebuild their credit with the help of a security deposit. You can qualify for up to $2,500 in credit depending on how much you’re able to put down – and if you make your payments on time and keep your account in good standing, Discover will review your credit line every six months with the possibility of increasing it without any additional deposits or fees. The card also offers cash back rewards and access to your FICO Score 8 every month – giving you insight into how your score is changing over time.
Chime Credit Builder Visa® Credit Card
This is another great option for those with bad credit. It offers a competitive APR, rewards points for purchases, and the ability to increase your credit line after six months of on-time payments. There are also no annual fees, fraud protection, and access to your Experian Credit Score every month – giving you insight into how your score is changing over time.
Tomo Credit Card
This card is perfect for those with bad credit or no credit history. It offers a low APR, rewards points for purchases, and the option to increase your credit line after six months of on-time payments. There are also no annual fees, fraud protection, and access to your TransUnion Credit Score every month – giving you insight into how your score is changing over time.
Grow Credit Mastercard®
This card is perfect for those looking to rebuild their credit without putting down a security deposit. It offers a competitive APR, rewards points for purchases, and the ability to increase your credit line after six months of on-time payments. There are also no annual fees, fraud protection, and access to your Equifax Credit Score every month – giving you insight into how your score is changing over time.
DCU Visa® Platinum Secured Credit Card
This card is ideal for those who want to put down a security deposit and rebuild their credit. It comes with a competitive APR, rewards points for purchases, and the option to increase your credit limit after six months of on-time payments – without any additional deposits or fees. There are also no annual fees, fraud protection, and access to your FICO Score 8 every month – giving you insight into how your score is changing over time.
Mission Lane Visa® Credit Card
This is another great option for those with bad credit or no credit history. It offers a low APR, rewards points for purchases, and the ability to increase your credit line after six months of on-time payments. There are also no annual fees, fraud protection, and access to your Experian Credit Score every month – giving you insight into how your score is changing over time.
Self – Credit Builder Account with Secured Visa® Credit Card
This card is the perfect combination of a credit builder loan and a secured Visa® Credit Card. It offers an affordable APR, rewards points for purchases, and the option to increase your credit line with no additional deposits or fees after six months of on-time payments. There are also no annual fees, fraud protection, and access to your TransUnion Credit Score every month – giving you insight into how your score is changing over time.
Conclusion
When it comes to rebuilding your credit, having the right kind of card can make all the difference. The cards listed above provide a range of benefits that can help you rebuild your credit – from competitive APRs and reward points to access to your credit score every month so you can track your progress. No matter which one you choose, these are some of the best bad credit cards available to help you get back on track.
Make sure to compare the features and fees associated with each card carefully, weigh them against what’s important for your financial goals, and make an informed decision that will give you the best chance of success in rebuilding your credit.
