Bad credit can make it difficult to get a credit card — and easy to get stuck in a negative financial cycle. Without a chance to rebuild your bankroll, you’ll have a hard time increasing your score. But what you may not know is that you can still find credit cards for bad credit.
If your credit isn’t perfect but you want to rebuild your financial existence, then a pre-approved credit card may be perfect for you. Unlike standard credit cards, which require extensive application and credit checks, pre-approved starter credit cards are available for those with no or limited credit.
Although these cards typically have high APRs and sometimes require annual fees and/or deposits, they can be a helpful option for those looking to rebuild their balance.
Below are some of the best credit cards for bad credit.
Secured OpenSky Visa
The Secured OpenSky Visa is a secured card and does not require a credit check. The person opening the account can choose their credit limit and then make their refundable deposit based on their amount. One of the biggest advantages of this card is the fact that a hard draw will not affect your score as there is no credit check.
Credit limits range from $200 to $3,000. OpenSky reports to all 3 major credit bureaus every month, which helps improve user results.
The annual fee is $35 and the APR is around 19.64%. The card offers all the benefits of a traditional Visa. According to the company, 99 percent of clients who started without a credit score built their score in just six months.
Credit One Bank® Platinum Visa® for credit rebuilding
Credit One Bank specializes in offering cards to people who either don’t have a credit history or don’t have a good credit history. One of the options is the Credit One Bank® Platinum Visa® for credit reconstruction.
The good thing about this card is that qualifying applicants receive 1 percent cashback on all purchases and the rewards are posted to their account every month.
Account holders can monitor their credit scores for free. Because it’s a Visa card, it offers all the standard benefits of any other Visa card. The annual fee for this card varies from $0 to $99. The APR for the purchase is variable from 19.74% to 25.74%.
Discover it Safely
The Discover it Secured Card requires a refundable deposit. This card has no annual fee and the default variable APR for purchase is 25.24%. This card allows users to receive a free social security number notification to protect their identity.
The Discover it Secured Card also allows users to check their FICO Credit Score online and on bank statements for free.
One of the best things about this card is that account holders can earn 2 percent cashback every quarter at restaurants or gas stations on purchases up to $1,000 and 1 percent cashback on any other purchase. The company also reconciles all your cashback earnings at the end of your first year after opening the account.
Indigo® Platinum Mastercard® Credit Card
The Indigo® Platinum Mastercard® credit card is a popular option for people with bad credit. The card has a pre-qualification option that does not affect the creditworthiness of the applicant. The company reports to all three major credit bureaus.
The Indigo® Platinum Mastercard® credit card offers fraud protection that can come with a typical Mastercard. Persons who have had bankruptcy can also qualify.
Merrick Bank Double your Visa credit card
The Merrick Bank Double Your Visa Credit Card allows users to double their credit line if they make a minimum on-time payment each month for the first seven months of opening their account. After that, the credit line increases automatically.
There are no penalties, and pre-qualification doesn’t show up as a strong pull on your credit report. You can also use this card to check your FICO score monthly.
Milestone Gold Mastercard®
The Milestone Gold Mastercard® is not a secured card. You can see if you prequalify before submitting an application. Most cardholders are given a $300 limit when they are first approved. However, keep in mind that annual fees range from $35 to $99*.
The annual fee is waived for the first year and ranges from $35 to $99* thereafter. The Milestone Gold Mastercard® includes the Mastercard Gold benefits.
Green Dot Platinum Visa
The Green Dot Platinum Visa is a secured card that has been specifically and specifically designed for building or rebuilding credit. Refundable security deposit required can be as little as $200 to maintain a line of credit and no bank account is required.
Usage and payment history is reported to the major credit reporting agencies, and users can go to some participating retail stores to make deposits.
The APR for the Green Dot Platinum visa is 19.99%, which is comparatively low. The annual fee is $39 and credit limits range from $200 to $1,000.
DCU Visa Platinum Secured Credit Card
The Digital Federal Credit Union issues this secured Visa Platinum Secured credit card. It allows account holders to borrow money into their savings account with DCU and there is no annual fee.
You have the option to use Visa Checkout and Apple Pay. Interest rates are very low for the DCU Visa Platinum Secured credit card . The effective annual interest rate is currently 13.75%.
USAA Secured Platinum Visa
The USAA Platinum Assured Visa has an annual fee of $35 but no foreign transaction fee and no APR penalty. The variable APR varies significantly on this card, although it starts at the low end and ranges from 11.65% to 21.65%.
The card offers unique features for military recruits, security protection and no liability. Account holders also receive a free credit score. When users apply, they can choose their credit limit based on their deposits. Deposits can range from $250 to $5,000. Unlike many cards, the deposit also earns interest.
Citi Secured Mastercard
The Citi Secured Mastercard allows users to deposit anywhere from $200 to $2,500 in security, giving account holders a higher line of credit than many other secured cards.
This card has credit requirements for approval, which includes a debt and income verification. The card has a variable APR of 24.74%. To qualify for this card, the account holder must not have had a bankruptcy in the past two years. This card has no annual fee.
There are many credit cards out there, but these are some of the best options. You can do the comparative analysis of credit cards based on the above types and their features and benefits and then choose the right option for yourself.
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