This may come as a surprise to you, but you can still apply for a credit card even if you have bad credit. In fact, this may be just what you need to get back on your feet!
If you use your new credit card wisely, you can end up improving your credit score significantly. The trick is to limit your spending and pay it on time. Plus, you can also try to consolidate all of your debt onto your new card, which makes payments much easier to manage.
Whatever you do, remember to play the long game when applying for a new credit card. Keep your focus on improving your credit and getting out of debt as you apply for different bad credit credit cards and start using them.
Here are five of the best bad credit cards available to you right now.
1. Discover It Secured
A secured credit card is basically your bad credit’s saving grace. It works similar to a debit card, but it gives you the chance to improve your credit because your spending is reported to the three major credit bureaus.
When you apply (and get approved) for a secure credit card, you actually put down a deposit on it. This deposit is what you “borrow” from whenever you use your credit.
Typically, your deposit is also your spending limit so you have to be careful not to go over.
You can still enjoy your card for in-person and online purchases, though. Some, like the Discover It, will even give you the opportunity to earn cash back rewards!
The Discover It card offers users 1-2% cash back on all purchases. You earn 2% for all gas station and restaurant purchases for up to $1,000 each quarter and 1% cash back on everything else.
Additionally, Discover will match your cash back earnings at the end of your first year using this card! But, they may transition you over from a secured line of credit to an unsecured line before your year is up.
This is a good sign that you’re in a better financial state, just be sure that you’re aware of the change if/when it happens.
2. Capital One Secured Mastercard
Another secured bad credit credit card worth looking into is the Capital One Secured Mastercard. Depending on your credit score, you may be able to put down as little as $49 on your deposit.
However, the payments range from $49, $99, and $200, so be prepared to put down more if need be.
Regardless of what your deposit is, you get an initial $200 credit line that you need to keep up with payments on for the first 5 months.
After this time passes, you can access more credit with this card. All of this is available with no annual fee or monthly fees.
3. First Progress Platinum Select Mastercard
The First Progress Platinum Select Mastercard is the only card on this list that doesn’t even require a credit check. There’s no credit history necessary to be approved for this card, which is great if you’re just starting to learn about credit or if you don’t want to have yet another check done on your score.
Still, it’s better to know about everything you’d be getting yourself into before applying for this card on a whim. The First Progress Platinum does come with an annual fee of $39 and it requires a deposit of at least $200 to get started.
But, you can put down a bigger deposit if you need to access more credit.
You can then get your deposit back at any time, so long as your payments are on time. This card sends reports to the top credit bureaus each month and gives you 24/7 access to manage your account.
4. First Access VISA
Up next on the list is the First Access VISA. This card comes with a few fees that you need to be prepared for. They include:
- a one-time fee of $89
- an annual fee of $75 in your first year
- a $48 annual fee after your first year
- a $6.25 monthly fee after your first year
There’s also a 29.99% APR on all your spending if you miss payments.
This can sound like a lot to handle, but it does come with a lot of benefits. You don’t have to put a deposit down to access your line of credit and your spending limit can increase over time depending on how well you manage this card.
5. Total VISA
Last but not least, the TOTAL VISA card. The fees for this card are identical to those listed in the First Access card above. However, there are a few differences between each card worth noting.
The first is that you need a checking account to qualify for the Total Visa. The monthly payments are a little more flexible than with most cards, although you should still aim to pay your dues in full if you want to improve your credit.
Discover What Bad Credit Credit Cards Can Do for You
At the end of the day, the most important thing to remember about all bad credit credit cards is that the effect they have on your credit is in your hands. These can either be your biggest financial relief or a huge nightmare; it all depends on how well you use your card and pay it off.
Take your time to choose the right one for you and start using it for only the things you need. Work the monthly payments into your personal budget and don’t forget about annual or monthly fees, if applicable.
In time, you’ll be surprised to see just how much good this kind of card can do for you. For more tips and tricks on how to be financially savvy even when you have bad credit, click here.