Bad credit is an increasingly worrying trend globally. In the US alone, it is estimated that 60 percent of the people run into bad credit before they hit the age of 30. Changing economic times in the last decade has had an impact on how people are able to pay their loans in time.
Credit cards misuse was the main cause of the recession a decade ago and a sizable number of Americans were in bad credit. You might be asking yourself what credit cards you can get with bad credit.
In this article, we lay out your options on the credit cards with bad credit.
1. Capital One Secured MasterCard
This credit card has been rated by many reviewers as the best option for you in bad credit. The main reason is that it allows you to rebuild your credit history. By depositing as low as $49 as a security deposit for a credit maximum of $200, you get the flexibility to grow. If your credit history is extremely on the red, you might be forced to pay a higher deposit of either $99 or $200.
It also allows you to pay for any credit line interest-free if you are able to meet your monthly obligation for at least five months.
If you do not miss a payment, you automatically get your credit limit increased through Capital One Secured MasterCard. You can do international payments at no extra fee.
2. OpenSky® Secured Visa® Credit Card
This card is increasingly being viewed with optimism due to the fact that it works for those who are outside the traditional banking systems. You do not need a bank account to open and operate this card. Once you are approved, you can make payments through debit card or through a cheque.
It also doesn’t require a credit check shielding you if your credit history is in bad shape. The only challenge with this card is that it does not offer you a chance to convert it into an unsecured one. You also have to pay an annual fee of $35.
3. Wells Fargo Secured Visa
This card is great for those who want to have access to the high credit limit. It allows you to put in a $300 security deposit and going up to $10,000.
You can only access credit equivalent to your security deposit. This amount is stored in non-interest earning account and refunded once you repay your credit line.
The card doesn’t look into your history record so much. You must have a Wells Fargo account in order to be considered for this card. Equally, there is an annual fee of $25 and an Annual Percentage Rate (APR) on purchases of 21 percent.
It is accessible to both US citizens and holders of Social Security Number.
4. Earn Rewards with Discover It secured
You could be feeling punished by your credit history. However, this card helps you earn rewards and cash back for your purchases of up to $1,000 during your credit duration. This amount can be redeemed at various outlets including Amazon.
You will need to pay a security deposit of $200 to get started and which is refunded after you finish your credit line. Besides, Discover It Secured monitors how your Social Security Number is used and if it finds its way to the dark web, you get a notification.
5. Been Bankrupt? Try Indigo Platinum MasterCard
Going bankrupt can have serious implications for your credit score. It takes above ten years to reestablish your credit score. Also, when you try applying for your credit cards, a negative response can affect your credit score. By applying for this card, pre-qualification does not affect your score.
The card has a favor for those who have been declared bankrupt in the past as it does not affect your qualification as long as you meet other measures. It’s also good to know that this card does not require extreme cases but a fair rating.
6. First Progress Select MasterCard Secured Credit Card
The good thing about this credit card is the low interest charged compared to other secured cards. You will, however, need a $200 security deposit to get going and an annual fee of $39 dollars.
7. DCU Visa Platinum Secured Credit Card
The interesting thing about this card is that it offers very low-interest rates as compared to other credit cards. With no entry APR and a 13.75 for ongoing APR, this is a darling for many. This rate sometimes exceeds those offered to people with better credit history.
The penalty charged for failing to pay your credit line in time is 18% which is lower than most banking institutions. You have to be a member of Digital Federal Credit Union to access this card. This card comes with other benefits including free travel insurance cover and free auto rental collision damage waiver.
8. Milestone Gold MasterCard
This is also another card that is not interested in your bankruptcy past. As stated above, most cards will reduce your credit score if your history is bad. This card does not affect this and a disqualification report keeps your score intact.
The Milestone Gold MasterCard allows you to pay your credit line either monthly or twice per month. As you build your credit history with timely payments, you are likely to qualify for a card that comes with a reward scheme. Avoid late payment as this not only affects your credit history but attracts penalties and a $39 as well.
Bad Credit is not permanent
While bad credit can negatively affect other areas of your life, it’s good to know that this situation can be reversed. It, however, requires a lot of financial discipline and efforts. Most important, it requires you to choose a credit card that accommodates your past.
If you are in bad credit and you need credit cards with bad credit, we have listed a few of them and what they offer. Here at Bonsai Finance, we offer more information that will help you make the right financial decisions.
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