Have you applied for a credit card and been rejected because of your bad credit score? Don’t worry – you have options available.
In fact, unsecured credit cards for bad credit can help build your credit score to help you get better lending options later.
Let’s take a closer look at the available options and how you can benefit from bad credit credit cards.
What Are Credit Cards for Bad Credit?
A credit card for bad credit can help you to rebuild your credit score.
These are credit cards that don’t require a good credit score to qualify, although it won’t come with all the perks and rewards that traditional credit cards do.
- Pre-qualify without impacting your credit score
- No security deposit needed
- Enjoy easy online account access 24/7
- Monthly reporting to 3 major credit bureaus
Most of these bad credit cards come with a high APR and relatively low credit limits.
If you want to rebuild your credit, these cards can do the trick. Be sure to pay on time every month and preferably not carry a balance.
Some credit cards for people with bad credit may require a deposit to serve as security in case you can’t make your card payments.
These cards are also referred to as secured credit cards and usually require a $200 deposit minimum while some cards allow for a deposit of up to $2,500.
Here is a list of the top-rated credit cards for poor credit:
|CardBenefitsApply NowPre-qualify without impacting your credit score|
No security deposit needed
Enjoy easy online account access 24/7
|Ideal for borrowers with bad credit|
Starting credit limit of $300
Annual fee $75 for the first year
|Simple application process with a quick decision|
Monthly payments reported to three credit bureaus
No security deposit
|Fast and easy application; results in seconds|
All credit types welcome to apply
$0 fraud liability for unauthorized charges
|No annual fee|
26.99% variable APR
No foreign transaction fees
|Initial credit limit ranges from $300 to $1,000|
Peace of mind with $0 fraud liability
Free monthly credit score
How To Apply for a Credit Card With Bad Credit
Most credit cards allow you to apply for credit without any guarantee other than your contract that you will pay it back.
There is generally no collateral associated with the card that the lender can use to get their money back. However, if you don’t need a good credit score when applying, there is a high chance that you will be rejected for these kinds of cards.
This is why you may need to consider applying for secured credit cards for bad credit, as it will allow you to get a credit card – even with a bad credit score – if you have collateral to offer.
- 24.9% APR
- Choose your card design
- Deposit of $300
- Payments reported to all three credit bureaus
Credit cards for bad credit are set up differently to help those with bad credit access some form of lending. Issuers have a less strict application process, which allows more people to get acceptance.
Credit cards for low credit are usually secured by a cash deposit upfront as collateral, or they will offer a small initial credit balance. They offer lower fees and give the best chance of approval.
There are unsecured credit cards for bad credit available; however, their fees will be much higher because they are more of a risk for the issuer.
- Ideal for borrowers with bad credit
- Starting credit limit of $300
- Annual fee $75 for the first year
- Easy online application
The goal of getting a bad credit card would be to keep your debt low, pay it off on time, and slowly rebuild your credit score to be able to get a better credit card as your score improves.
It’s never a good idea to have multiple credit cards as it increases the temptation to get into more debt when they should be to get out of debt.
When it comes to unsecured credit cards for bad credit, if you apply for a credit card and get rejected, don’t immediately apply for another card.
Multiple rejections in a short period can damage your credit score further.
The best thing to do is to find out exactly why the credit card issuer rejected you.
There could be several reasons, including incorrect information on your credit file or a bank error. The credit card issuer can tell you the reason for denial.
Get Your Credit Report To Apply for a Credit Card
Before you rush in and apply for a credit card, it’s a good idea to check your credit score to determine what kind of card would best suit you.
Checking your credit score is free and easy. You can check your score through Credit Karma or Credit Sesame, or most banks offer the service through their online portals. Applying for multiple cards may shine poorly on your credit score.
Check what’s in your report and dispute any accounts you don’t recognize.
Find any collection accounts and reach out to set up payments or settle the bill.
Verify your personal information is accurate, like name, address, employer, etc.
Make sure to keep all your current accounts in good standing going forward.
4 Tips To Improve Your Credit score
Use Credit Cards to Build Your Credit Score
After receiving bad credit credit cards, ensure you pay by the due date. Even with bad credit cards, paying on time improves your credit score.
You can start by comparing the best credit cards for bad credit here at Financer.com, to find the best credit card rates from leading lenders.
This lets lenders know you can be trusted, thus increasing your chances of qualifying for better credit cards in the future.
- Initial credit limit ranges from $300 to $1,000
- Peace of mind with $0 fraud liability
- Free monthly credit score
- Monthly reporting to all three major credit bureaus
Use this credit card for everything, from groceries to utility bills. Pay off as much as possible after the bill is posted. The more, the better. When feasible, pay the card off in full.
It is a myth that leaving a balance on your card is beneficial to credit. By paying off your card in full, you avoid interest and credit utilization.
The more you use the card and make monthly payments, the more positive credit history you build.
Be sure to contact your company after six to eight months to see if you qualify for better credit options.
Credit Cards for Bad Credit FAQs
Can I get a credit card if I have bad credit?
There are credit cards specifically designed for people with bad credit. These are generally without perks and may require a security deposit.
Can I get a credit card wtih a 450 credit score?
Although it’s not impossible to get a credit card with a 400 to 450 credit score, you will likely need to accept high interest rates and fees.
Does Capital One approve bad credit?
You can apply for the Capital One Secured Card to help rebuild your credit.