Advertiser Disclosure

How to get a credit card with bad credit

How-to-get-a-credit-card-with-bad-credit

Deciding how to get a credit card with bad credit means you may have to do some research.

Credit card options are limited when bad credit is involved. Just know that finding a credit card with bad credit means it won’t be a fancy rewards card or even one with exclusive perks.

Instead, it will be a credit card that will help rebuild credit. And, once you have accomplished the goal of building a better credit history, you can move on to a better card. 

Use your new card responsibly to build your credit history. All payments must be on time, every month. Late payments kill credit scores. If you want to avoid paying interest, pay in full each month.

The most useful strategy for improving your credit scores is to maintain a low account balance. Low credit utilization can do wonders to raise your credit scores.

That means if your credit limit is $500, never use more than 10 percent of your available credit if you plan to carry a balance from month-to-month. You can do this by using the card sparingly or making multiple payments each month.

How to get a credit card with bad credit

1. Unsecured Credit Cards

FIT Mastercard® – 400 credit limit doubles to $800!

The Fit Mastercard® is designed for people with less than perfect credit. It features an initial $400 credit limit (subject to available credit) that doubles to $800 by making your first 6 monthly minimum payments on time.

This card reports to the three major credit bureaus and gives customers free access to your Vantage 3.0 score from TransUnion (When you sign up for e-statements), it will be easy to monitor your credit score.

You will need a checking account in order to apply for this card but don’t worry if you don’t have one. Open a checking account for bad credit to satisfy this requirement.

FIT Mastercard® Features:

  • $400 credit limit doubles to $800! (Simply make your first 6 monthly minimum payments on time)
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Initial Credit Limit of $400.00* (Subject to available credit)
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere Mastercard® is accepted
  • Free access to your Vantage 3.0 score from Experian* (When you sign up for e-statements)
  • Checking Account Required

Indigo® Mastercard® – No security deposit required!

unsecured-credit-card-bad-creditThe Indigo Mastercard® is a good choice for people struggling to get approved for other cards but need to build a positive credit history.

You can apply for prequalification for the card without placing a hard inquiry on your credit reports.

Indigo® Mastercard® Features

  • Pre-qualify for a card today and it will not impact your credit score.
  • Less than perfect credit is okay.
  • Mobile account access at any time.
  • Fraud protection for stolen or lost cards.
  • Account history is reported to the three major credit bureaus in the U.S.

Surge Mastercard® – Up to $1,000 credit limit doubles up to $2,000!

The Surge Mastercard® is a high limit credit card for bad credit. Depending on creditworthiness, your limit could be up to $1,000 and double up to $2,000 by making your first 6 monthly minimum payments on time.

Get free monthly access to your credit score with the Surge Mastercard®. Checking your credit scores regularly gives you a good idea of what influences your credit score.

Surge Mastercard® Features

  • Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
  • All credit types welcome to apply!
  • Free access to your Vantage 3.0 score From Experian* (When you sign up for e-statements)
  • Initial Credit Limit of $300 – $1,000* (subject to available credit)
  • Monthly reporting to the three major credit bureaus
  • See if you’re Pre-Qualified without impacting your credit score
  • Fast and easy application process; results in seconds
  • Free online account access 24/7
  • Checking Account Required

Milestone® Mastercard® – Good for rebuilding credit

easy-approval-credit-cards The Milestone® Mastercard® is designed for people who are rebuilding their credit. While you won’t have rewards, you can build a better credit history with timely payments reported to the credit bureaus.

But keep in mind your credit limit may be on the lower end — just $300. That means you must keep your credit utilization under 30%, which might be a challenge with this card.

It’s recommended that you use the card for small purchases while working to improve your credit history. That way you can pay the credit card account balance in full each month.

Milestone® Mastercard® Features

  • Pre-qualify for a card today and it will not impact your credit score.
  • Less than perfect credit is okay.
  • Mobile account access at any time.
  • Fraud protection for stolen or lost cards.
  • Account history is reported to the three major credit bureaus in the U.S.
  • Disclaimers: *Dependent on credit worthiness.

2. Credit Builder Cards

Chime Visa® Credit Builder Card

best-secured-credit-cards-for-bad-credit The Chime Visa® Credit Builder Card hands down is one of the best secured credit cards for bad credit. That’s because Chime offers a secured credit card with no credit check, no security deposit, it does not charge interest plus has no annual fee.

Based on a representative study conducted by TransUnion®, members who started using the Chime Visa® Credit Builder Card saw an increase of 30 points in their credit score after 4 months of reporting.

Chime Visa® Credit Builder Card Features

  • No minimum security deposit is required, but your spending limit equals the amount that you transfer from your Chime Spending Account.
  • To be eligible for the card, you will need a Chime Spending Account and to receive a payroll direct deposit of at least $200 within 365 days of applying.
  • No credit check to apply.
  • No annual fee.
  • No interest charges.
  • Reports to all three credit bureaus.
  • Turn on Safer Credit Building and your balance will be automatically paid on time, every month.
  • Add money from your Chime Spending Account into Credit Builder Secured account anytime.

Self Visa® Credit Card – Secured Credit Card

Open a Self account and pay the $9 administrative fee. Self’s bank partner will lend you funds to put into a certificate of deposit (CD), and you can’t access the money until the CD matures. Make your next three monthly payments on time.

Once you’ve accumulated at least $100 in savings and your account is in good standing, you’re eligible to open the Self Visa® Credit Card.

Self Visa® Credit Card Features

  • Use your savings progress to secure your Self Visa® Credit Card.
  • $300 credit limit (subject to available credit).
  • When you pay off your credit-builder loan, you’ll receive your principal back minus fees and interest.
  • You don’t need a credit score.
  • No hard inquiry.
  • Fund your secured-card deposit with your credit-builder loan.

3. Secured Credit Cards

Merrick Bank Secured Visa® from Merrick Bank

Consumers with bad credit need to replace bad credit with good credit. The Merrick Bank Secured Visa® from Merrick Bank is designed to help individuals build or rebuild their credit. Your credit line is based on a security deposit up to $3,000, rather than on a credit score.

Merrick Bank Secured Visa® from Merrick Bank Features

  • Choose your own credit line based on how much money you want to put down as a security deposit.
  • Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
  • After 9 months, we review your account for a credit line increase. No additional deposit required!
  • Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
  • Unlike a debit card or a pre-paid card, it helps build your credit history. As you pay your bill every month, we report to all three major credit-reporting agencies.
  • Get 100% U.S.-based customer service & get your FICO® Credit Score for free each month.
  • Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with Auto Pay and account alerts.
  • Card issued by Merrick Bank, Member FDIC.

OpenSky Secured Visa® Credit Card – No credit check required

how-to-get-a-credit-card-with-bad-credit The OpenSky Secured Visa® Credit Card does not require a credit check and no checking account to apply. You choose your credit line as low as $200 up to $3000, secured by a fully-refundable* security deposit. The security deposit needs to be submitted before the credit card can be issued.

Get extra credit when you need it by increasing your credit line up to $5000.

Customers get access to online financial education resources. If your score isn’t where you want it to be, the OpenSky® Secured Visa® Credit Card is the ideal tool to use to improve it.

OpenSky Secured Visa® Credit Card Features

  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.

Make wise financial decisions

The desire for a credit card does not solely rest with spending. Credit cards are needed in certain situations and a matter of convenience in other situations. Renting a car, reserving a hotel room and even an emergency repair may involve the need for a credit card.

Avoid any credit card offer that is too costly. Even though the Credit Card Act of 2009 capped upfront fees to 25% of a credit card’s limit, some subprime credit card issuers are finding ways around the law by charging upfront processing fees.

For some consumers, the upfront fees may be worth rebuilding credit. However, you must keep in mind credit card balances should be kept to no more than 30% of the available credit limit in order to increase credit scores.

Leave a Reply

Your email address will not be published. Required fields are marked *