Good Credit Cards for Bad Credit
Wondering how you can turn a bad credit situation around and improve your credit score. One way to turn things around is to look for good credit cards for bad credit. Bad credit can keep you from obtaining important loans that you may need, like mortgages and car loans. But sometimes we encounter the unexpected and our credit scores plummet, leaving us to rebuild. The good news is that there are ways to rebuild your credit.
It takes a little time and patience and responsibility, but you can achieve a high credit score once again in just a few simple steps.
First, be prepared to pay your bills on time. Don’t spend outside of your budget and when you’re ready you can open up a credit repairing credit card. They’re out there if you look hard enough and do your homework.
But that’s why you’re here, right?
If you’re working on improving your credit and you don’t know where to start, you’ve come to the right place. In this article, we’re discussing good credit cards for bad credit. Keep reading to learn more.
Good Credit Cards For Bad Credit
If you’re just starting out with bad credit and you’re having a hard time deciding which credit cards are good credit cards for bad credit, it can do more harm than good. Make sure you review all of your options before allowing a credit lender to run your credit. Hard inquiries affect your score.
The key to establishing good credit is to know which credit card to choose. Here’s a list of seven good credit cards for bad credit that can help you rebuild:
OpenSky Secured Visa
This lender will give anyone an opportunity without a credit check. You’ll start the account with a minimum $200 deposit that will serve as your credit line. In addition, you can build your credit score in as little as six months.
You should also note the annual fee at $35 per year and the variable APR interest rate that hovers around 18.64%.
You will need to meet income standards for this card because there is no credit check. This is a great card for someone that is just starting out with no credit or someone that is struggling to build their credit.
Credit One Bank Platinum Visa
This is a good card for bad credit with benefits. You can get 1% cash back on purchases that are eligible according to the terms and conditions. You’ll also be eligible for credit limit increases if you pay your bills on time each month.
This card allows you to find out if you’re pre-qualified without affecting your credit score so you can try it out without hurting yourself. Once you have an open account, you can monitor your credit score and receive email or text alert reminders for payments due.
First Progress Secured Credit Card
This credit card is designed for people with bad credit or no credit. You don’t even need a minimum credit score to qualify. And, you determine your credit limit with a security deposit of no less than $200 and no more than $2000.
There are three different credit cards available here:
- Platinum Elite
- Platinum Select
- Platinum Prestige
Each card has a zero annual fee for the first year and then tiered fees for each card thereafter. Interest rates vary from 11.99% to 19.99%.
Bankamericard Secured Credit Card
This card is issued by Bank of America with a minimum $300 security deposit that serves as your credit line. The nice thing about this card is that the maximum security deposit is $4900. If you have bad credit but a lot of cash, this is a great card to get started.
Bank of America will review your card after 12 months. If they think you’ve used the card responsibly, they’ll return your security deposit. And, you can still use the card for a $39 annual fee at 20.99% a
Wells Fargo Secured Visa
Wells Fargo will allow you to set up this secured Visa with no less than $300 but you can set the maximum all the way up to $10000. With responsible credit use, you can work your way up to an unsecured card.
You’ll enjoy a low annual fee of $25 and an ongoing APR of 19.99% variable.
Capital One Secured Platinum Mastercard
Capital One won’t charge you an annual fee but you will need to set up the card with a deposit. The security deposit ranges from $49 to $200 depending on your creditworthiness. Then, you’ll get an initial credit line of $200.
This card reports to all three major credit bureaus. If you use this card responsibly, you can easily build your credit.
There is no annual fee with the Capital One card and you’ll enjoy a basic APR variable at 24.99%.
Discover It Secured Credit Card
The Discover It card doesn’t have an annual fee and you can even perform balance transfers with this card. The balance transfer has an intro APR at 10.99% variable.
This is a secured card meaning you will need to provide a refundable security deposit of no less than $200 to establish your credit line. You’ll also need to provide banking information to get started with this card.
Discover will review your account beginning in the eighth month of usage to consider transitioning you to an unsecured line of credit.
This card has a regular APR of 24.24% variable.
The best thing you can do to build your credit is to pay your credit card bills on time. Also, try to keep your balances below 30% of your available credit limits. This will establish trust among lenders when you try to use your credit later.
Don’t get caught up in opening too many credit cards either. You could find yourself in serious debt sooner than you think. Open one or two cards and use them monthly while making no less than the minimum payment each month.
Soon, your credit score will be rising and you’ll be getting even more offers from even better credit card companies. Just be careful, you’ll need your credit for other loans in the future. But lenders will appreciate a healthy credit score and responsible credit card use.
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