Apply for Unsecured Credit Cards for Bad Credit
Having bad credit is a big deal when you need credit. Lenders are not comfortable when they need to offer credit to people with bad credit scores. This explains why such credit facilities come with high interest rates.
Now, such credit packages are even common and it is easy to access them. If you have a credit score that is lower than 579, you should know that your credit score is poor. However, you can still sign up for unsecured credit cards for bad credit. Unsecured credit cards are the most common credit card options available.
These cards are not backed by any form of collateral. Although there are card options for people with bad credit, the line of credit may be low. The line of credit will depend on how you use the credit card. If you manage to establish a good credit history, your line of credit will be increased. Although lenders consider it risky to lend to people with bad credit, there are still several credit card packages for people with bad credit scores. Here is a list of the best offers.
- Total Visa Card
Total Visa Card offers you a card that charges no annual fee. The good thing is that you can build your credit history when you use your card responsibly. This is because Credit One reports to all three credit reporting bureaus. You will need to pay an $89 processing fee when you request is approved. When you apply for this card, you will provide your personal details such as name address, and contact details. With this card, you can make online payments and the card is widely accepted by merchants nationwide. You will, however, need a checking account to apply for this card. You will get the opportunity to increase your line of credit at no extra cost. the credit score requirement for the card ranges from 300 to 670. The downside of this card is that you do not get to enjoy cash backs, miles, or points on purchase.
- Fingerhut Credit Account
This credit card is easy to apply for. You will get a credit decision in no time. That means that you will know if you have been approved or not right after you apply for the credit card. You can use this card to shop in several shops. One great thing is that this company reports to all three credit reporting agencies and that will give you the opportunity to build your credit. Fingerhut currently serves over 7 million clients in the United States. Fortunately, Fingerhut does not charge you an annual fee. You can also save on interest if you pay off your balance before the billing cycle ends. You can shop from major brand shops such as Dell, Sony, Samsung, Graco, Adidas, Shark, and KitchenAid.
- Credit One Unsecured Card
This card is provided by Capital One Bank and it is one of the best options for people with bad credit. The annual fee on this card ranges from $0 to $99 and the APR on the card ranges from 19.74% to 25.74%. One winning feature about this card is the fact that it comes with cash back rewards. This is not common with unsecured credit cards for people with bad credit. You enjoy cash back rewards when you make purchases. Grocery shopping, mobile phone service payment, restaurant visits, internet service payments, and others attract 1% cash back rewards. These rewards are in the form of an automatic statement credit. This helps you to pay off your account balance. With this card, you can get pre-qualified without hurting your credit score. You will also enjoy interest free purchases if you pay off your entire balance before the billing period ends. This is because Credit One only charges interest on the balance that is moved to the next billing period.
- Indigo Unsecured Mastercard
This card is offered at an ongoing APR of 23.9%. If you have a previous bankruptcy record, you will still qualify for this card. This feature is very helpful since bankruptcy can stay on your credit report for up to 10 years. In most cases, they are cleared after 7 years. The annual fee ranges from $0 to $99. Another good thing about applying for this card is that you can apply to see if you will be approved. Your credit will not be affected since they will conduct a soft credit inquiry (your credit score will only be affected when a hard credit inquiry is conducted). You will be able to build your credit history with this card. You only need to make payments on time. Making payments on time can also help you to save on interest. Indigo only charges credit interest rate on balances that have been carried to the next billing cycle. That means that you can avoid interest payments if you make full payments before the billing cycle ends. Although Indigo charges an annual fee of $99, it waives some of the fees for the first year. Depending on your credit score, the fee for the first year maybe $0, $59, or $75. The foreign transaction fee charged for this card is 1%.
- Milestone Gold Mastercard
This card is issued by FS Card Services. You can check if you qualify for this card without harming your credit score. The application process for this card is simple and you will get a free online access to your account. You can choose a design for your card and that is also free. This card is also available for people who have filed for bankruptcy in the past. This card is a good option if you worry about fraud incidents. You will enjoy a free protection against fraud should your card get lost or stolen. Milestone Gold Mastercard is accepted at over 35 million locations in the United States. The APR charged on this card is 29.90%. The annual fee varies and it ranges from $35 to $99. You will pay a 1% fee on any foreign transaction you make. This card company does not charge a cash advance fee in the first year, However, you will pay a fee of $5 or 5% in the subsequent years. You can build your credit history if you make regular payments when you use this card. You can even choose to make payments 2 times a month. When you pay your entire balance before the billing cycle, you will not pay any interest on the purchases you make with this card.
- Discover it Student Cash Back Card
This is one of the best unsecured card options for students who have poor credit. This card offers several cash back rewards and you do not need to worry about annual fees. there is no annual fee. There is a 5% quarterly cash back reward on payments made on Amazon.com and purchases made at restaurants, gas stations, and grocery shops. However, there is a limit on the quarterly rewards for these purchases. Students are also rewarded for performing well in school. Cardholders earn $20 in statement credit each school year if they have a GPA that is 3.0 or higher. You will also receive free social security number alert. This credit card company charges 3% on balance transfer. The purchase intro APR is 0% for the first 6 months.
- Capital One Quick Silver Cash Reward Credit Card
This card issued by Capital One is available for people with fair to limited credit. The annual fee charged on this card is $39 and the APR is 24.99%. They will not charge you when you make a foreign transaction. They do not charge a balance transfer fee as well. If you want a cash advance, you will pay 3% of the amount of the cash advance, however, this fee will not be less than $10. With this card, you get unlimited opportunities to earn cash backs. You will 1.5% cash back on all purchases you make. The cash back that you earn does not expire. When you make regular on-time payments for the first 5 months, the card company offers you the opportunity to increase your line of credit. You can monitor your credit profile with the CreditWise app. With this card, you will enjoy auto rental insurance and travel accident insurance.
- Capital One Platinum Credit Card
If you are looking for an unsecured card that you will not need to worry about annual fees, this card is one of your best bets. There is no penalty APR and there is also no balance transfer fee. You will, however, need to pay a variable APR of 24.99%. You will get fraud coverage if your card gets missing. They will also offer you the chance to increase your line of credit if you make regular payments for six months. There is a mobile app that grants you access to your account at any time. you will also have the convenience of choosing your monthly due dates. You can make payments online or by check. You can also visit any of the local branches to make payments. Using this card can also help you to build your credit history. Once you make payments on time, you are building your credit for future credit transactions. Once you hold this card, you will enjoy benefits including travel accident insurance, roadside assistance, auto rental insurance, and price protection.
- Credit One Bank Platinum Visa with Cash Back Rewards
This card issued by the Credit One Bank allows you to easily check if you pre-qualify for their offer. The annual fee on this card ranges from 0$ to $99 and the APR also ranges from 19.74% to 25.74%. You get to enjoy 1% cash back on all eligible purchases. The cash back rewards are automatically posted to your account every month. You can also apply for an increase in your line of credit, however, this comes at a fee. You get to enjoy auto rental collision insurance and travel accident insurance. The cash advance fee charged on this card is 8% and the foreign transaction fee is 3%. Another feature of this card is the $0 fraud liability. With this feature, you will not be responsible for any unauthorized charges. You can also choose a customized design for your card but this may apply at a fee. You can check if you will be approved and this will not hurt your credit score.
- Journey Student Rewards from Capital One
Journey is another card offered by Capital One. This card does not come with an annual fee and you enjoy 1% cash back on all purchases. The good thing is that the percentage you will earn as cash back rewards can increase to 1.25% if you make payments on time. you can make your foreign transactions with ease since Capital One does not charge foreign transaction fees. The APR charged on this card is 24.99%. There is no penalty APR and there is also no balance transfer fee. When you process a cash advance, you will pay 3% of the amount as fees, however, the fee will not be less than $10. That means that even if 3% of the amount is less than $10, you will pay $10. You can build your credit when you use this card responsibly. You will also get the opportunity to increase your line of credit when you make regular payments for the first five months. You will enjoy $0 fraud liability when your card gets missing. It is difficult to miss payments because you have the convenience of choosing the due date that works best for you. you can also use the Capital One mobile app to monitor your account. Other benefits that come with this card are extended warranty protection on certain goods, MasterRental Coverage, and travel accident insurance.
- Capital One Spark Classic for Business
This is another card that is issued by Capital One. This card does not attract an annual fee and you will also not pay a transaction fee. The APR on this card is 24.74% and this card also attracts a penalty APR of 31.15%. Capital One also charges a cash advance fee of 3% of the cash advance. However, if the percentage calculated is less than $10, you will pay $10 as the cash advance fees. With this card, you will enjoy 1% cash back on every purchase. You will also enjoy fraud coverage if your card ever gets missing. You can also use this card to build your credit. If you use your card responsibly, your credit history will get a facelift. Cardholders enjoy other benefits including extended warranty protection, purchase security, auto rental collision damage waiver, and travel and emergency assistance services.
Frequently asked questions about Credit Cards for Bad Credit
- How Do I Use My Credit Card Responsibly?
If you want to build your credit history using your credit card, it is important to use it wisely. The two factors that can help you to improve your credit history are paying your balance on time always. Make sure you do not exceed the due date. Some card companies allow you to choose a due date. Make sure the due date you choose does not fall below the date you receive your salary. Another important thing to do is to keep your balance below the limit. It will harm your credit if you max your credit score.
- What Is the Typical Deposit Amount Required for a Secured Credit Card?
The amount you will pay a cash deposit to secure your card varies. However, it ranges from $49 to $2000. It all depends on your credit score and the amount you will receive on the card.
- What Do I Do If I Am Not Approved?
It is important to check if you meet the company’s requirements first. If you meet them but you have been rejected, contact them via the consideration number. This number is usually printed on the consideration letter. When you contact them, you can ask them why they denied you the credit. You should also ask them if you will be considered if you work on it? If it does not work out, you should consider applying for a secured card. Since secured cards require cash deposits, there is a higher chance of you being approved for the credit.
- Can I Get a Credit Card with No History?
The chances are slim but it is possible. For young people and people who mostly use cash for transactions, it will be difficult for them to build a credit history. There are credit card companies that offer credit cards to people with no credit history. Usually, credit cards that accept bad credit are good options for people without a credit history. You are most likely to qualify for such cards. If you apply for the unsecured card and you are not approved, try the secured ones. These cards have pre-qualification options. You can check if you pre-qualify before actually apply. You should also check if the company performs a hard or soft inquiry. A hard inquiry will hurt your credit score. Make sure you check and go in for card companies that conduct soft inquiries only.
- Is It Better to Have a Secured or an Unsecured Credit Card?
It is advisable to get a card that works for you. If a secured one works for you, that is fine. It is difficult to get an unsecured card when you do not have a credit history but you can try that first. When you are unable to get approval for the card, you can opt for the secured card. There are pros and cons of getting either card. The good thing about unsecured cards is that you will not need to make cash deposits to get the card. You can also build your credit with this card and you will have a higher lending limit. The cons that come with this card is that the approval guidelines are strict making it difficult to qualify. The interest rate and annual fees on these cards are also high.The advantages that come with a secured credit card include easy approvals. It is easier to get approved for secured cards. These cards have lower interest rates. The downside is that you will need to make a cash deposit before accessing the card.
- What Kind of Cards Should I Avoid If I Have Bad Credit?
Some cards are not recommended if you are struggling with your finances. One of such cards is the balance transfer card. This card is not good for you if you have problems paying bills. This card will not solve the problem. Even if the card comes with an initial 0% APR offer, you will accumulate a lot of debts when the offer ends. You should also avoid cards with high annual fees. If you have a bad credit, you may want to save as much as you can on fees and interest rates. You can use this cash to pay off most of your debts. Although cards that come with high annual fees have huge reward schemes, it is better to avoid these cards. You should also avoid cards that require high initial spending. Some cards require that you spend more at the beginning to qualify for rewards. You should avoid cards that will make you spend more.
- What to Do Before Applying for A Credit Card When You Have Bad Credit
The first thing to do when you want to apply for a credit card with a bad credit score is to check your credit score. There are several websites that allow you to check your credit score for free. You can sign up for these websites and you will be able to check your score for free. You should also apply for only cards you are certain that you will qualify for. Since you know your credit score, you should research for credit card options for that category. You can also check if you pre-qualify for the card first. Even with that, you should check for companies that conduct soft inquiries. So that you do not hurt your credit.