When it comes to credit cards for people with bad credit, your choices are limited. But you don’t have to be stuck with a lousy credit card. Below we list some of the best credit cards for people with bad credit. If your credit is too bad for an unsecured credit card (unless it comes with outrageously high interest and fees), then consider a secured credit card that requires a refundable deposit but often has better terms otherwise.
Unsecured Credit Cards for Bad Credit
The Mission Lane Visa® Credit Card – Mission Lane specializes in credit cards for people who are rebuilding credit after past credit problems. Card terms vary, with the possibility of a $0 annual fee up to a $59 annual fee, depending on your credit history. You’ll get an instant decision on your application, and you could qualify for a higher credit line after making your first 6 payments on time.
The good news: You can see what Mission Lane would offer you by pre-qualifying on their website with NO HARD PULL on your credit report. If you like the terms, you can go ahead and complete a firm application, which would then result in a hard pull.
Worried that your application could still be denied after being pre-qualified? Mission Lane says: “The only way to be declined after you’re pre-qualified is if we can’t verify your identity or income with the information you’ve provided. If you’re pre-qualified, you’ll be approved as long as we can verify the information you’ve filled out on your prequalification form.” Pre-qualify now with NO Hard Pull.
Petal® 1 “No Annual Fee” Visa® Credit Card – This up-and-coming credit card company may have a no-annual-fee credit card for you even with bad credit. Your credit limit might start a little lower, but your first credit line increase could come as soon as 6 months after approval. No guarantees, but Petal does offer a pre-approval process to give you an idea if you’re likely to qualify for the card. Petal credit cards are issued by WebBank, Member FDIC.
Capital One Platinum Credit Card – No frills, but this no-annual-fee credit card has been the starting place for many people with poor credit scores who’ve been turned down by other credit card issuers — as a result, it has a fan club of grateful cardholders who held it while building their credit scores to a place where they could qualify for one of Capital One’s generous reward credit cards. If approved, Capital One says you’ll be “automatically considered for a higher credit line in as little as 6 months.”
Secured Credit Cards for Bad Credit
Capital One Platinum Secured Credit Card – Solid secured credit card option with no annual fee, and you could be automatically considered for a higher credit line in as little as 6 months. You’ll put down a refundable security deposit of at least $200 (in most cases) and get an initial credit limit of that same amount (or maybe a little more, depending on your credit history). Otherwise, it functions just like any other credit card, and if you make your payments on time, it could be a building block toward a credit score that’s not so bad anymore.
OpenSky® Secured Visa® Credit Card – This secured card is popular with people who are rebuilding their credit for a couple of reasons. Number One, it has no credit check when you apply — so you don’t have to worry about any hit to your credit score. Number Two, its fees and rates are reasonable. You set the credit line based on the amount of your refundable security deposit, anywhere from $200 to $3000. Annual fee of $35.
Author: Adam Jusko