If you are looking for a credit card to repair your history and you still don’t know which one to choose this article is for you. Next, we will describe the steps to request this type of cards. In addition, you will have the possibility to know which are the most feasible offers for approval, currently. If you want to know more information, keep reading.
- 1 Characteristics of Credit Cards for bad credit
- 2 Credit Card Types for Bad Credit
- 3 Best Credit Cards for Bad Credit
- 4 Quote and Compare Credit Cards for Bad Credit
- 5 Frequent questions
Characteristics of Credit Cards for bad credit
Bad credit credit cards are ideal for helping people whose credit score is among the 300 and 639. Likewise, with this type of product you can rebuild your history and opt for better offers in the future. The best cards in these cases have annual fees as low as $ 0. In fact, some offer rewards equivalent to 1% refund cash or more on purchases.
All issuers of these cards comply with performing credit reports on a monthly basis. These reports are issued directly for subsequent approval at the credit bureaus, this is a recurring process (sometimes sponsored). This point is very important as it guarantees the possibility to rebuild your history and opt for better cards when you have increased your score.
The correct credit card for most people with bad credit will be one secured card. Secured credit cards charge lower rates and offer better odds of approval. However, in case you need loans you will have to resort to cards without guarantees. In the end, the product ordered will depend solely on your specific needs.
Credit Card Types for Bad Credit
These are the most famous and recommended credit cards for people with bad credit history. These types of products are different from conventional credit cards since they require a security deposit. This deposit is refundable and is ideal for opening your bank account. Likewise, by making a deposit you are showing that you have better opportunities for approval of your request.
These types of cards are used by those who need to improve or establish their credit record. A financial product with guarantee, report your payment history to the 3 main credit bureaus in the United States. By using these cards responsibly, you can quickly improve your credit history or build it.
This is the second major ranking for credit cards of this type. These are cards very similar to conventional credit cards. In this case, you should not make any deposit as a guarantee for the request. Therefore, they are a bit more difficult to rate when you have bad credit. With this option, you apply to cards with lower benefits and much higher interest rates.
This can be a good alternative for those seeking access to a no deposit line of credit. Finally, these cards tend to have lower interest rates than personal loans for people with bad credit; in addition, they are much safer and more reliable.
Best Credit Cards for Bad Credit
Slate Edge Credit Card
Interest Rate / APR: 14.99% – 23.74%
Annual commission / fee: $ 0
Balance Transfer fee: $ 5 or 3%
Credit level: Good, excellent
It is for you if: You like credit cards for balance transfers or if you need to improve your credit score.
Card type: Rewards / Rewards, No Annual Rate / No Fee, Zero Annual Interest / 0% APR, Low Annual Interest / Low APR, Balance Transfer / Balance Transfer
Quote and Compare Credit Cards for Bad Credit
Before requesting this type of card, it is important to consider the following recommendations:
- You must be up to date with all Late payments. These types of credit cards will not be approved for applicants with recent delinquency.
- Compare the rates of all your options. The best credit card of this type will have a low cost. On the other hand, one way to keep costs down is to find a card with low annual fees (or void), monthly fees and one-time fees.
- Always try to pay your bills in full, this way you will avoid interest charges.
- Look for options secured cards, these products will guarantee you a high probability of approval. Secured credit cards offer the greatest chance of approval because they require security deposit that acts as your line of credit.
- Secured cards are not always approved. These products work under guaranteed approval, but most will still make a credit check legal. In fact, certain items on your credit report can disqualify you. If you are looking for a secured card that does not do a credit check, you can opt for the OpenSky® Secured from Visa.
Here are the best credit card deals to rebuild history that are currently available:
|Credit card||Special feature||Annual quota|
|Green Dot Visa® Secured Credit Card||Improve credit history||$ 39|
|Credit One Bank® Visa® Credit Card||No guarantee deposit||$ 0 – $ 39|
|Capital One® Secured Mastercard®||No additional charges||$ 0|
|OpenSky® Secured Visa® Credit Card||High probability of approval||$ 35|
Remember that it will always be important to take the time to compare offers of this type of product, depending on the credit card you are looking for. If you still don’t know which one to choose, and you are still evaluating options to improve your credit history, we invite you to use our free tool to quote and compare at Cotizator.com.
What does “bad credit” mean?
Bad credit is generally defined as a credit score below 630. The credit scale ranges from 300 to 850 points. These scores are able to measure the risk of lending money to someone. Therefore, the higher the risk, the lower the score. Common mistakes such as: Lack of multiple payments, bills to the maximum, invoices delivered to collection agencies, etc., will damage your credit history.
I don’t have a credit history yet. Is that considered bad?
In many respects, not having a history is equivalent to bad credit, you are also considered a greater risk because you have not yet demonstrated your ability to handle money loans.
Can I get a credit card if I have bad credit?
Yes, it is no secret that multiple issuers have cards designed specifically for people with bad credit. These cards are generally described as “products to rebuild your credit.” Cards of this type do not offer rewards or benefits, they charge high interest rates and some of them have high costs.
Are Secured Credit Cards My Only Safe Option?
A secured card is not your only option if you have bad credit. However, it may be the best offer you get. Some issuers offer regular “unsecured” cards for people with bad credit; however, it is not a good idea as it represents a higher risk with a deposit that you cannot get back.
What do I need to request this type of card?
You must be at least 18 years old and have a Social Security number to be considered for a credit card. In addition, you need as a fundamental requirement, the approved American residence. In most cases, (not for everyone) you need to have a bank account.