Compare Bankrate’s best cards for bad credit
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A closer look at top credit cards for bad creditCapital One Platinum Secured Credit Card: Best for rebuilding credit
Learn more: Capital One Platinum Secured Credit Card vs. OpenSky Secured Visa Mission Lane Visa Credit Card: Best for low annual fee
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How to use the Mission Lane Visa Card Discover it Secured Credit Card: Best secured card with rewards
Learn more: Discover it Secured vs. Petal 1 Self – Credit Builder Account with Secured Visa Credit Card: Best for building credit with savings
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to use the Self Credit Builder Account with Secured Visa OpenSky Secured Visa Credit Card: Best for low-interest credit-building
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How to use the OpenSky Secured Visa Credit Card All information about the BankAmericard® Secured Credit Card has been collected independently by Bankrate.com and has not been reviewed or approved by the issuer. What is a bad credit score?A bad credit score — a FICO score under 579 — can happen for a number of reasons and negatively impact your finances. Defaulting on loans, missing credit card payments or even opening too many credit cards can negatively impact your credit score. If you’re a victim of credit card fraud or identity theft, your credit score could also take a hit, making it more difficult to qualify for the financial products and services you need. Renting an apartment, getting a credit card or applying for a mortgage all become more difficult with poor credit. Thankfully, there are ways to build your credit with a credit card. Learn more: How bad credit can affect your mental and physical health Lightbulb Bankrate Insight Checking your credit score regularly is a good financial practice that can help you spot inaccuracies. Spotting inaccuracies on your credit report can help you keep your credit report tidy, making it easier to get and keep your credit score where it needs to be. Luckily “cleaning” your credit report is a fairly easy five-step process. Pros and cons of credit cards for bad creditPros
Cons
Types of credit cards for bad creditSecured cards for bad creditSecured cards are a great way to learn responsible credit use while issuers maintain a safety net for themselves in the form of credit card security deposits. When you open a secured credit card, you typically provide cash upfront that often acts as your starting credit limit. If you default on your card, the issuer keeps your security deposit, but if you use the card responsibly with on-time payments and low credit utilization, you may be able to increase your credit score and graduate to an unsecured card. Unsecured cards for bad creditIf you don’t want to — or can’t — provide the funds for a security deposit, unsecured credit cards are still available for people with bad credit. Unsecured cards for bad credit usually come with higher-than-average interest rates, no benefits and no rewards. You can still build credit with an unsecured credit card, but it’s important to do your best to pay your balance in full each month to avoid interest charges and practice positive credit use while you do so. Student cards for bad creditWhile college students without credit history don’t necessarily have bad credit, plenty of student credit cards may accept applicants with scores in the 500s. For example, the Discover it® Student Cash Back may be accessible for students without credit history (but other factors may influence your eligibility). What sets student credit cards apart from bad credit credit cards is that it’s much more common to find student credit cards with benefits, rewards, and no annual fees. Who should get a bad credit credit card?Credit cards for bad credit often have fewer requirements to qualify and come with many credit-building features. Some of these features may include limited fees or free credit score access and credit monitoring. When used responsibly, credit cards for bad credit are a good fit for the following people: How to choose the right credit card for bad creditGetting a credit card for bad credit is an excellent opportunity to improve your credit profile, but it’s important to choose the right credit card for you. Here are some important factors to consider: Still unsure if a credit card is right for you even if you have bad credit? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs. How to build your credit score with a credit cardResponsible credit card use is one of the best ways to build a positive credit history and move on to the next stage of your credit journey: Finding a credit card for fair credit. Here are five tips to follow to help you improve a bad credit score:
Lightbulb Bankrate insight There are major changes to how medical debt impacts credit scores. Implemented July 1, 2022, medical debt was wiped from Equifax, TransUnion and Experian credit reports. Many consumers could see credit score increases of up to 100 points from the three credit bureaus’ policy changes. Credit-building alternatives to credit cardsAlthough responsible use of a credit card is a great way to build credit, it’s not the only way. In many cases you’re better off building your credit without using a credit card — perhaps your credit score isn’t in the right place (many credit cards aimed at people with low scores are predatory in nature) or because you’re simply not ready to carry the responsibility of using a credit card wisely. In either case, there are plenty of suitable options for people looking to build their credit without using a credit card. Get a credit-builder loanA credit-builder loan is a great tool for someone who doesn’t have strong enough credit to be approved for a credit card, but still hopes to build their credit score. With a credit-builder loan, you’ll receive the loan amount (usually between $300 to $1,000 dollars) to a secure account that you won’t have access to right away. You’ll make a fixed monthly payment until you’ve paid off the entire amount of the loan and then get the full amount back. All of your payments will be reported to the three credit bureaus, which boosts your credit score over time. Repay an existing loanRepaying an existing loan — like a car or student loan — can help you improve your credit score if you pay on time and pay your entire balance each month. All loan payments are reported to the credit bureaus by the lender. Conversely, defaulting on a loan, or not making payments in a timely manner can negatively affect your credit score. Report existing billsA tool like Experian Boost can help you build your credit score quickly by adding alternative data to your credit report. The Experian Boost service lets users add cell phone bills, cable and internet bills, gas bills, electric bills and bills for streaming services to their credit reports. Traditionally these types of bills had no impact on your credit report because they weren’t reported to the three credit bureaus, but with Experian Boost these payments are used by FICO to calculate your score. Other services similar to Experian Boost are Experian Go, UltraFICO and eCredable Lift. Experian Go in particular doesn’t require an existing credit score to use. Video guide: What to do if your credit card application is denied
How we chose our list of top cards for bad creditBankrate uses a 5-star scoring system that evaluates credit cards based on annual fees, APR , sign-up bonuses, rewards programs and other features. For credit cards tailored to people with poor or bad credit, we focus on the attributes you might be most concerned about when selecting a new credit card. Annual feeGetting charged a fee every year for being a cardholder can eat into the value you’re getting from your card. We look for benefits that help make up for the cost of an annual fee. 0% introductory APR offerThe annual percentage rate is the rate of interest you’ll have to pay on your outstanding balance. The longer the period with a 0 percent APR, the better. Balance transfer offerWhen you move part or all of the outstanding balance you owe from one lender to another, this is called a balance transfer. Some cards offer a low fee on transferred balances — usually around 3 percent to 5 percent of the transferred amount. Transferring a balance can be a tool to consolidate debt, pay down what you owe at a lower rate and improve your credit score. RewardsEven if your credit score isn’t perfect, there are cards that offer fantastic rewards that help you earn cash back, points, or miles on what you’re spending every day. We evaluate the rewards and identify which card is a good fit for different types of spenders. Further reading on bad credit credit cardsHaving bad credit is an uphill battle, but being informed and armed with research is the best tool in your arsenal. Here’s more information on credit cards and bad credit:
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate. * See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer. What is the easiest unsecured card to get?The Credit One Visa Card is the easiest unsecured credit card to get. It is available to people with bad credit or no credit. Cardholders also earn 1% cash back on eligible purchases.
What is the quickest credit card to get?Top credit cards you can use instantly after approval. Bank of America® Premium Rewards® credit card.. Amazon Prime Rewards Visa Signature Card.. United℠ Explorer Card.. Upgrade Triple Cash Rewards Visa®. SoFi Credit Card.. Other notable options.. Major issuers and their policies on instant credit access.. Which bank give credit card easily?Some of the most popular banks offering credit cards in India are HDFC, SBI Card, ICICI, Amex, Axis, Citibank, Standard Chartered Bank and Kotak Mahindra Bank. However, the best credit card for you would be the one that matches your needs.
Can I get approved for a credit card in one day?Getting approved for a credit card can take as little as 60 seconds, once you fill out an online application and hit “submit.” However, it may take a few days, or even a few weeks, to receive an email from a card issuer that says whether you're approved or not.
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