Second chance credit cards are a great way to rebuild credit.
But choosing a second chance credit card can be overwhelming. We’ve compiled a list of second chance credit cards to help you pick the best credit card to rebuild credit.
Second chance credit cards should be treated just like a traditional credit card when it comes to management.
Purchases made on your credit card must be repaid on time. Even though the credit card issuer gives you the option to repay your balance over time, it’s best to pay in full each month when you want to rebuild credit.
Once you’ve established a good repayment history over 12 to 24 months, you’ll be in a good position to open credit cards for good credit to take advantage of the many perks, for example:
- Rewards credit cards: Rewards cards pay cash back, miles, or points rewards on your purchases.
- Balance transfer credit cards: Balance transfer cards offer a (temporary) low introductory rate on balances you transfer to the credit card.
- Low interest rate credit cards. Low interest cards offer a low introductory rate on purchases. Some credit cards offer the low rate for both balance transfers and purchases.
Start rebuilding your financial future with a second chance credit card today
- No credit check to apply. But, you must first open the Chime Spending Account which is a free checking account. The money you spend on your credit card account is tied to the money you move over from your Chime spending account.
- Based on a representative study conducted by TransUnion®, members who started using Chime Credit Builder in September 2019 observed a median credit score (VantageScore 3.0) increase of 30 points by January 2020.
- Use your card at locations everywhere Visa® is accepted.
- No interest. The Chime Credit Builder Visa® Secured Credit Card does not charge interest.
- 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.
- Chime will report your activities to Transunion®, Experian®, and Equifax®. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
- 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
- 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.
- Build Your Credit fast with our monthly reporting to all 3 major credit bureaus.
- Choose your credit line as low as $200 up to $3000, secured by a fully-refundable* security deposit.
- Security deposit needs to be submitted before the credit card can be issued.
- No credit check necessary and no checking account required; apply in less than 5 minutes.
- Extra credit when you need it, increase your credit line up to $5000.
- Access to online financial education.
- *View our Cardholder Agreement located at the bottom of the application page for details of the card. Click the Apply Now button to get to the application page.
- Receive Your Card More Quickly with New Expedited Processing Option
- No Credit History or Minimum Credit Score Required for Approval
- Quick and Complete Online Application; No credit inquiry required!
- Includes Free Real-Time Access to Your Credit Score and Ongoing Credit Monitoring powered by Experian
- Full-Feature Platinum Mastercard® Secured Credit Card; Try our new Mobile App for Android users!
- Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
- Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
- Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
- Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
- 24/7 Online Access to Your Account
- Nationwide Program though not yet available in NY, IA, AR, or WI *See Card Terms.
- Get a fresh start! A discharged bankruptcy still in your credit bureau file will not cause you to be declined.
How to avoid credit card debt with second chance credit cards
There’s always that possibility of getting into debt with credit cards because you are essentially borrowing money. It can take years to get out of credit card debt, especially if you pay only the minimum due. Here’s how to avoid credit card debt:
- Charge only what you can afford. Never use your credit card to live above your means.
- Purchase only items you need, like gas, groceries, or even pay utilities with a credit card. These are basic necessities which you pay monthly anyway. In order to rebuild credit put the basic purchases on the credit card, then pay in full the next month and you’ll have an excellent payment history.
- Pay your balance in full each month. As long as you’re paying off your credit card balance, you’re staying out of debt.
- If you don’t have the cash in your bank account to cover the full amount purchased with a credit card, don’t make the purchase. Credit cards are not additional income – they are borrowed money.
Best practices to manage a second chance credit card
A second chance credit card gives you an immediate opportunity to build your credit if managed correctly. Here are few tips that will help your credit score:
- Track your purchases using the mobile app to stay in front of your credit card balance.
- Low balances will help build a higher credit score.
- You can help establish a positive payment history by setting up automatic payments and alerts each month. If you need a bank account, there are several banks that offer second chance checking accounts.
- While you just need to make the minimum payment for it to be considered on time, never pay just the minimum payment due. You’ll end up paying the balance over a longer period of time which means you’ll pay much more in interest than had you paid more than the minimum payment due.
- Maintain a low account balance. If your credit balance is too high, it will hurt your credit score. Consider making multiple payments throughout the month.
- Find out when your credit card issuers report your account activity to the consumer credit bureaus and make a payment before that date.