One of the best ways to build credit aside from paying off loans each month is to have a credit card, use it, and pay it off each month. This might sound hard for those who already have bad credit but it doesn’t need to be. Let’s dive in before we talk about the best cards for bad credit.
Build Credit By Using Credit Cards
For a quick rundown of how this works, let’s start with someone who has a clean slate. This person gets a credit card that is accessible for people with bad or no credit. From there, they use the card to pay for their gas, food, and bills.
These are things that are pre-budgeted and would be paid anyway. From there, this person will pay off the card twice a month, once two days after the billis finalized and once halfway through the month.
Over time, this habit will allow for their credit score to rise naturally. It might take a while, but over six months, someone with no credit could see themselves qualified for much better cards. Keep in mind though, you should treat this credit card just as your debit card, no spending unless the money is already in the bank.
Best Credit Cards for Bad Credit
Now for the list you came looking for. Each card is designed or able to be used by people with bad or growing credit. Take a look to see which is best for you. Keep in mind, applying for multiple credit cards can actually hurt you credit so only choose what’s best for you.
Capital One® Secured Mastercard® – No Annual Fee
One important thing that those looking to build credit should want is a card with no fees. While you will need a limited history to get the card, it requires no fees to start or to maintain. However, you might have to give a minimum deposit to open the card ranging from $49 to $200 due to it being a secured credit card.
What Is A Secured Credit Card?
If you’ve never heard the term before, then you might be confused. A secured card is designed for people with bad or thin credit. In general, this means paying a refundable deposit to get a credit limit. Most credit cards are unsecured; however, secured is a great option for those who might not qualify otherwise.
If you can’t afford to pay a deposit, then this credit card may be perfect. Designed for people looking to build credit with limited income, you don’t have to worry about one-time fees or months fees. Depending on the outcome, you could no annual fee or a fee of $99 a year. This is a perfect card for those with bad credit.
Discover it® Secured – Secured
This is considered by many to be the best credit card for those with bad credit. With $0 annual fees, 1-2% cash back and reward doubling in the first year. The only thing to note is that the card does require a deposit of $200 plus as this is another secured credit card.
Indigo® Mastercard® for Less than Perfect Credit – Bad to Fair Credit
If you have poor credit that isn’t so bad, then think about this card. It has either no annual fee or a $99 annual fee depending on your credit worthy-ness. That means the better your credit is, the better your annual fee will be. What’s better, this is an unsecured credit card, so no deposite will be required.
OpenSky® Secured Visa® Credit Card – Bad or No Credit
If you don’t have credit, this is the perfect card for you. Since they don’t require a credit check, there’s a high chance you can get approved even if you have a bad rate or repaying loans. Keep in mind, this card is secured so you’ll need to pay at least a $200 deposit and also pay a $35 annual fee – A small investment for those with horrible credit.
Looking for Help With Approval?
If you’re looking for a way to get a credit card, but don’t want to get a bunch of denials, then LEAF Credit Solutions is here for you. In addition to helping you getting a credit card, we can also help you improve your credit score by getting bad marks taken off. If you’re interested in credit improvement, contact us today!