Secured credit card
4.5 ★★★★★
We have the choice of Upgrades and Rewards.
The Discover It®, Secured credit cards require a refundable security deposit like other secured cards that help people rebuild or build bad credit scores. The system automatically reviews accounts to determine if they can switch to an unsecured credit card. By reporting to the major credit bureaus, using this card responsibly can pave the way for a positive credit history.
Capital One Quicksilver Secured Cash Rewards Credit Card
4.3 ★★★★★
We have the choice of Upgrades and Rewards.
Capital One Quicksilver Cash Rewards Credit Card offers a variety of attractive features for those with low credit scores, such as cashback rewards. This is similar to your benefits on the much-unsecured credit card. Additionally, it’s an excellent option for those who’d like to consider a credit union for a secured card with more personal service. Check out our review.
Cap One Platinum Secured Credit Card
4.0 ★★★★★
We choose Low deposit.
The Cap One Platinum Secured Credit Card is a great option for those looking to establish or improve their credit while working with a credit range that matches their needs. With a low deposit requirement, this card makes it easier for individuals to get started on better credit.
The Capital One Platinum Secured Credit Card requires that you make a security deposit. Qualified applicants can get a $200 credit limit and a $49 or $99. Credit card companies may grant an automatic credit limit increase without making a deposit, which can help lower your credit utilization ratio and avoid reaching your maximum credit limit too quickly. This is especially important for those with poor credit scores or bad credit history.
OpenSky® Secured Visa® Credit Card
4.3 ★★★★★
No credit check
Are you interested in pre-approval credit cards for bad credit? The OpenSky®, Secured VISA® Credit Card comes with an annual fee. However, many people with a bad credit history will still be interested because there is no credit check. You don’t even need a bank account. You can fund your deposit using a Western Union payment or money order. Keep your credit card details secure and maintain on-time payments to improve your credit standing.
Chime Credit Builder Visa® Credit Card
4.5 ★★★★★
We choose No credit check.
You will need to have a minimum deposit. This allows you to automate your payments so that you arrive on time. This card has zero minimum deposit, no annual fees or interest, and it can automatically be automated to pay your bills monthly, so you never miss a payment.
Tomo Credit Card
4.1 ★★★★★
Our choice: There is no credit check, annual fee, security deposit, or APR
For those with low FICO scores or none, the Tomo Credit Card is available. The card issuer does not need to make a security deposit or conduct a credit check. Instead, they can look at income and account balances. There are no interest fees or charges. Late payments can negatively affect your credit score, but the card offers automatic reviews to address potential credit issues. Moreover, the Tomo Credit Card reports your account activity to major credit reporting agencies to help you build your credit history.
Get Credit Mastercard
4.5 ★★★★★
Our choice: There is no credit check, annual fee, security deposit, or APR
Stay on top of your finances by setting up monthly payment options and avoiding late payments with this credit card. Be aware of your credit score and responsibly manage your account to prevent potential credit issues.
The Grow Credit Mastercard doesn’t require a security deposit or credit check. Instead, you can use the card to establish credit and pay for eligible subscriptions like Netflix and Spotify. You don’t have to carry any credit card balance. There are no interest or other charges. Please read our review.
Credit Builder Secured Card
4.0 ★★★★★
Our choice for Adjustable credit limit
Armed Forces Bank’s Secured Credit Visa® Credit Card allows for easy expansion of credit. All you have to do is deposit more money. This will allow you to be more flexible and reduce your credit utilization. This option can benefit those with a limited credit history and looking to improve their credit standing with the major consumer credit bureaus.
DCU Visa®, Platinum Secured Credit Card
4.3 ★★★★★
We choose Low-interest rates.
The DCU Visa®, Platinum Secured Credit Card can serve bad credit. It has a lower interest than many unsecured cards for people with good credit. It offers lower interest than other unsecured cards for those with good credit. This traditional credit card helps make responsible financial decisions and build credit over time.
Other Resources
To protect yourself from Fraud Liability, you must monitor your credit card activity and report any suspicious transactions to Customer Service immediately. Also, staying informed about your Social Security benefits status can help avoid identity theft and financial issues.
How do you determine if your minimum credit score is sufficient to get a credit card for bad credit?
This is asking for a regular credit card line. You are asking for a regular credit line.
Credit cards for people with bad credit can be an option for people with higher credit risk.
Credit score access: Credit score less than 630
Credit scores below 630 are generally considered to be poor credit. A credit card tailored to your needs, such as a debit or credit card, can help you rebuild your credit profile.
Credit history could be better or better.
Bad credit is commonly associated with poor credit ratings. This can include errors such as not paying your bills or transferring your accounts to collection agencies. They can also be considered risky borrowers due to their credit risk.
What is bad credit?
Multiple factors can influence credit scores. Some are minor. A credit inquiry for a credit card application can temporarily lower someone’s credit score, suggesting a need for more financial resources.
These main factors can affect your credit score and contribute to poor credit.
- Your payment history. This is the most important thing that will impact your score. Making bills on time and regular payments can help improve your credit score.
- How much do you owe? Credit utilization is a key factor in scoring systems. Scoring systems pay special attention to credit utilization. Keeping track of your combined purchases will help to maintain better credit utilization.
- Credit history. A lack of credit history can lead to a low credit score. Close the policy if it has one. Access to credit from various sources is essential for positive credit history.
- Different types of credit. Scoring algorithms prefer to see a mix of loans and credit cards. Only allowing one account to become part of your credit history is important. Consider the approval requirements and deposit requirements of different credit lines.
- Credit applications. Each application temporarily lowers your credit score. Only apply for cards with bad credit credit cards guaranteed approval and minimal initial credit limits to reduce the impact on your credit.
What credit card is easiest to get approved?
Credit card applications are not guaranteed payday loans to be approved. Card issuers will also consider your income, credit history, and spending habits.
- Your money will be returned to you if your account is closed or enhanced with the help of financial institutions. This is done to ensure your bank account can pay the bill. If the type of credit card issuer is less risky, it will be easier to get approved.
- It’s generally easier to get a credit card from a store than a bank account, especially for everyday purchases. Store credit cards are more flexible and offer higher interest rates. However, they can still be useful for credit building and convenient for online shopping.
- Green Day Online only recommends an unsecured credit card for people with bad credit. Instead, exploring different credit types and investing in credit monitoring is better.
- Fair credit cards are an option for those who have just started building credit and have at least 600 points. See our top credit card for proper credit.
High costs can result from bad credit.
Credit scores are a measure of risk. You will pay more interest if you can get a loan.
There are other costs. Credit scores can be used by landlords, employers, and insurers to evaluate applicants or customers.
Green Day Online’s survey revealed that many people must be aware of these effects. Another 1 in 5 respondents thought 600 credit scores were enough to get a credit card.
Regardless of your credit history, a tailored card can help you build credit faster and more efficiently.
Bad credit cards
Credit cards with low starting credit limits and high-interest rates for people with poor credit are common. When you choose a credit card, these are the things to consider: eligible purchases, average approval rate, monthly maintenance fee, competitive rates, spending limit, and Minimum Score.
- They are reporting payments to credit boards.
- Low fees.
- Card benefits: Credit score. An issuer should give you free access to your credit scores so you can track your progress. Other resources should be available, such as financial education programs for free and calculators for debt repayments.
- An upgrade route. If you have poor credit, can you upgrade to an unprotected card that has no fees and offers rewards? Can I change from a secured to a regular unsecured card?
How to Apply for Credit Cards for People with Bad Credit
1. Know your credit score
Applying for credit cards can take a lot of work. It’s important to know your types of credit scores because issuers use a variety of credit scores in the potential approval decision.
2. Select a card that suits your needs
When selecting a card, consider card features such as interest rates, rewards, and an annual percentage rate (APR). Along with others on Green Day Online, this page has a “recommended scoring” graph showing how much credit you need to be approved for a card. If you don’t log in, you can view the Recommended Range.
3. Apply
Once you have a good understanding of your credit score and the desired card features, apply accordingly and constantly work on improving your credit for better options in the future.
To apply to a card, click the “apply now.” The application will usually ask for your income and might involve application fees.
4. You should deposit your security deposit
Secured credit cards require you to deposit at least $200 before your issuer opens them. If you deposit $500, your credit limit will be $500. You can deposit $1,000 to get credit lines equaling $500. Consider asking your card issuer about a potential credit line increase to help manage your expenses better. Some allow you to pay by money order.
5. Get your card and understand the terms
After you have funded your deposit, your card will be issued. Make sure to understand its terms and charges, such as the Cash advance fee for any cash advance you need and how it differs from traditional cards. Familiarize yourself with the payment schedule to avoid late fees and improve your credit score.
Credit cards can help you improve your credit score while managing regular purchases.
Low credit scores do not mean you are condemned to failure. Using your secured credit card responsibly, especially for regular purchases, can help build your credit score.
- Making timely payments is the first step in building a credit history. Be sure to use your card. This will improve your score over time and positively impact lending decisions made by creditors.
- Avoid using the card frequently. Credit utilization is an important component of credit scores. Credit utilization is how often you use credit. Look for a card with favorable reward rates to maximize benefits while minimizing utilization.
- Pay on time and in full. If you can’t make the full payment by the due date, you must complete at least the minimum payment. An affordable option would be to choose a card with lower interest rates to reduce the overall cost of borrowing.
- Track your progress. Regularly check your credit score, credit reports, and other information to see if you’re on the right track. Monthly reviews can help you stay informed about your credit standing and make necessary adjustments.
- Keep your accounts open if possible. Check with your issuer to determine if you can keep the existing account. A solid option would be a secured credit card requiring a cash security deposit to ensure responsible usage.
Below are some statistics about the best secured credit cards:
| Statistic | Value |
|---|---|
| Average annual fee for secured credit cards | $35 |
| Average security deposit required for secured credit cards | $300 |
| Average credit limit for secured credit cards | $500 |
| Average APR for secured credit cards | 24% |
| Percentage of secured credit card users who graduate to an unsecured card within 12 months | 60% |
| Percentage of secured credit card users who see their credit score improve after 12 months | 30% |
CREDIT CARDS ARE NOT TO BE AVOIDED
Credit cards for people with bad credit are often costly. This includes processing, activation, monthly maintenance, and membership fees.
These fees can quickly add up and be more expensive than a deposit on your secured credit card. These fees, unlike security deposits, are not returnable.
Green Day Online recommends that you avoid products like these:
FIRST PREMIER BANK CREDIT CIRCULATION CARD
The fees associated with the First Premier Bankcard are very high. Your credit limit will also affect your ongoing fees. This card may limit your access to a mobile device and has a variable purchase rate that could be costly. The federal law that established this fee structure is its reason for existence. This card also does not offer a bonus category or Variable APR range.
HORIZON GOLD CREDIT CARD
This card website banner states: “Bad credit, no credit?” The banner at the top of this card website says: “Bad credit, no credit?” The card has an “issuance fee” and an “accident validation fee.” It also lacks a soft credit pull feature and may not have a favorable category of choice for rewards.
CREDIT ONE CARDS
Credit One Bank, separate from Capital One, is a credit card specialist for people with less-than-perfect credit. Unfortunately, their cards may lack essential features like Monthly reporting and may not offer a solid reward bonus category.
SURGE CARD
The Surge Card, while targeting individuals with poor credit, may come with a range of fees and limited access to a mobile device. This card may have a different category of choice for rewards and might not provide essential Monthly reporting.
MATRIX CARD
Matrix Card offers a credit solution to those with a less-than-perfect credit history, but it may have high fees and limited features. It may lack a bonus category, Variable APRs range, and not offer a convenient mobile device experience.
The minimum credit limit for these cards is $500, and they charge an annual $125 fee. This fee is 25% lower than the legal maximum. In the second year, the annual fee drops down to $96. You will be charged $10 monthly for maintenance fees, totaling $216 annually.
TOTAL VISA
Total Visa is similar to the First Premier Bank Credit Card. You must pay an $89 processing fee to open an account. This drops to $48 for the second and subsequent years. You will also have to pay a $6.25 per month processing fee. This amounts to $75 per annum. Total Visa card APR as of June 2019 was shockingly high at 34.99%.
LAST RESORT OPTIONS
INDIGO PLATINUM PRIMERCARD
According to the website, the annual fee for this card varies depending on the cardholder’s creditworthiness.
MILESTONE GOLD MASTERCARD
Genesis Bankcard Services offers Milestone Gold. It is the same company that created Indigo Platinum.
Methodology
Green Day Online’s Credit Cards Team chooses the best credit cards for bad credit. This is based on overall value, star ratings, suitability for specific consumers, and minimum and maximum deposits for secured cards.
We also consider interest rates, credit education and tools, reporting options to credit agencies, and the possibility of upgrading to an unsecured account. You can also get approved without having to pass a credit check. Some of these credit cards even offer unlimited cash rewards or
Frequently Asked Questions
How do secured credit cards differ from traditional credit cards, and why are they suitable for people with bad credit?
Secured cards require a refundable security deposit which serves as the credit line. This helps people with bad credit get approved and build credit.
What are the typical deposit requirements for securing a credit card when you have a low credit score?
Expect to place a refundable deposit between $49 and $300 to secure the card. This becomes your initial credit limit.
Can you explain the benefits and drawbacks of some of the best secured credit cards available for individuals trying to rebuild their credit?
Benefits are guaranteed approval and building credit. Drawbacks can be high deposits and fees. Compare options to maximize benefits.
How does using a secured credit card responsibly help improve a person’s credit score over time?
Making on-time payments shows lenders you can use credit responsibly and builds your payment history, two major factors in credit scores.
