Millions of Americans have a poor credit score, and as a result, they are often unable to get approved for a credit card. This can be extremely frustrating, as it can make it difficult to purchase items or take out loans when you need them. However, there are some credit cards available for those with poor credit scores. In this blog post, we will discuss these cards and how they can help you improve your credit score.
The main issue with having a poor credit score is that you have a higher risk for default or late payments. This means that in order to get approved for a credit card, lenders require a much higher deposit in order to offset this risk. They also need some reassurance that their investment will be protected if anything goes wrong. One of the main ways that credit card companies can ensure your repayment is through a required deposit. If you are unable to make the initial deposit, it will be difficult for you to get approved for a credit card with poor credit.
There are some cards available online that don’t require a deposit. However, these cards typically have an extremely high-interest rate, which means you may end up paying much more for your purchases or loans. These cards are not beneficial to getting your credit score up, so it is typically better to pay off the balance as quickly as possible and avoid these high-interest rates.
If you do have a deposit available, there are still some companies that will allow you to apply for a card. They will typically use this deposit as your credit limit, meaning that you won’t be able to spend much more than the amount of your deposit. This is because these cards are designed specifically for those with poor credit who need help improving their score.
As previously mentioned, one way companies can minimize risk when approving customers with poor credit scores is by setting a high required deposit. However, another way they reduce risk is by placing restrictions on the cards themselves. These restrictions allow them to more easily keep track of your spending habits and ensure that you are able to make the payments on time every month. One common restriction is an over-the-limit fee, which will charge you extra if you ever spend more than the limit they have set on your card. This can be helpful in some cases, but it can also make it more difficult to get approved for future cards if you are constantly paying this fee.
Finally, poor credit scores are typically caused by late or missed payments in the past, so there is a risk that you may repeat this mistake. This means that many cards designed for those with poor credit forbid international transactions on their cards. Since the issuer of the card will not know your location, it is difficult to dictate whether or not you are making a legitimate purchase. For this reason, some companies only allow domestic transactions on these cards in order to reduce risk and ensure they get their money.
However, if you do plan on using your credit card abroad, there are some cards available for people with poor credit that will allow this. They typically charge a higher fee than normal in order to offset the increased risk.
Therefore, the best type of card for those with poor credit is one that charges no fees and has no card restrictions. However, these cards are typically difficult to get approved for. The best option for most people is to find a card with at least some of the following restrictions: no over-the-limit fee, no international transaction fee, and no penalty interest rate. These cards will still require a deposit but can help you improve your creditworthiness.
Below are the best credit cards for poor credit score:
- Secured Credit Cards, Minimum Deposit Required: $200 for deposit of $1,000 (can be used as credit limit), APR (fees may apply): 24.99%*. As one of the few cards available with no annual fee, it’s a great choice to get your score up. But the limit is low and the interest rate will still cost you. If you can afford to pay it off in a few months, then switch to another card with a higher limit and lower APR.
- Unsecured Credit Cards, Minimum Deposit Required: $300 for deposit of $500 (can be used as credit limit), APR (fees may apply): 15.24%. This card is less secure because you put down a deposit, but it’s worth it if you want to make a purchase soon and don’t have the cash on hand. The low interest rate and transactions fees are great for those with poor credit. Plus, the annual fee is waived the first year!
- *Note: The interest rate may not seem very high compared to other cards, but it’s still more than what you would pay on a traditional loan or credit card with good credit. It can really add up quickly if you don’t pay your balance off every month.
Companies offering the best credit cards for poor credit score are
listed below. Make sure you click on the ‘Read Full Review’ link to learn more about the card, including interest rates if applicable:
No Annual Fee Secured Credit Card (The only company offering this unique feature)
Hopefully these cards will help you improve your credit score and provide you with a way to make large purchases for special occasions.
To check your credit score, visit Credit Sesame . It’s free and offers you an instant score every month. I’ve been using it for over a year now and highly recommend checking your score at least once per month to ensure its accuracy. Their website is also great for tracking all of your spending in one place!
Below are some of the providers that can offer you a credit cards even if you have a poor credit score
- CitiBank: Minimum deposit is $200 for $1,000 initial limit.
- Capital One: Minimum deposit required is $75 for $300 initial credit limit.
- First Premier Bank: Minimum deposit required is $225 for $300 initial credit limit. If you would like to learn more about what you need to do in order to improve your score, head on over to Credit Sesame . The company offers credit cards for poor credit score, if you do not know your location the card is less useful than it would be otherwise. If you still think, there is something worth looking at on this offer see the last paragraph. With no annual fee , an introductory APR of 0% for first nine months, and low fees for balance transfer (with 0% intro APR) it is one of the best credit cards for poor credit score. Cardholders can monitor their progress through a free online account at Credit Sesame, which also gives users access to a free monthly FICO score.
Q: what is the best credit card to help build credit?
A: The best cards for poor credit score are secured credit cards with no annual fee. ou can try one offered by Capital One or Discover.
Q: where can I get the best credit card for poor credit score?
A: The best place to apply is at Credit Sesame, which offers 0% APR on balance transfers and only requires a deposit of $200 for $1,000 initial limit. You can also try Capital One or Discover.
Q: what is the best credit card to build credit?
A: Try a secured credit cards first. a secured card with a higher limit and no annual fee will be more effective than one with a low initial limit. The best cards for poor credit score have no annual fee , which can help you save money in the long run.
Q: what is the best credit card to get if i have no credit?
A: I would recommend a secured or a prepaid debit card. They are the easiest, fastest way to re-build your credit score after having zero or bad credit history. A secured/prepaid card is best because you put a small sum of money down as a deposit and they report it to the credit bureaus. So in essence you are not spending money when they report it, but your score goes up by default. Best cards for poor credit score include Capital One or Velocity (at MR MR).
Q: what is the best credit card if i have bad credit?
A: Secured cards with no annual fees are the best cards for poor credit score. These cards do not have high annual fees, so you can save money in the long run. The best cards for bad credit include Capital One and Discover.
Q: what is a good credit card to get if you have no credit?
A: The best place to apply for a credit card is at Credit Sesame or Capital One. Although you may not receive the best credit card offers available, it is a good way to start rebuilding your credit score with a secured card . It’s also good for those who want to check their score every month and track all their spending!
Q: how does Credit Sesame work?
A: Credit Sesame is a free website that gives you access to your TransUnion credit score (for free) and also allows you to track all of your spending in one place. You can even receive personalized credit card offers based on what you spend money on!
Q: how can I get a credit card with bad credit and no deposit?
A: A secured credit card with no annual fee is best for people building their credit score. The best cards for bad credit and no deposit include Capital One and Velocity (at MR MR).
Q: how to get a credit card if you have zero credit history?
A: If your goal is to build your score, your best option is to apply for a secured credit card with no annual fee. The best cards for zero credit history include Capital One and Velocity (at MR MR).