A less than stellar credit score limits your options to apply for top credit cards. But, don’t feel dejected. There are many companies out there who are ready to offer cards designed to meet your needs.
Some of these options include:
- Secured credit cards that need a refundable security deposit with the bank for determining your credit limit.
- Unsecured credit cards are available for people with average credit.
- Store credit cards having lower credit needs and higher interest rates than regular credit cards.
What Exactly is Bad Credit?
Bad credit or FICO score of 579 or less restricts your access to high-rewards credit cards in the market. Mostly, a credit score represents your creditworthiness or ability to repay your debts. Based on these scores, banks lend the best credit cards.
When you bring your score to an upper limit exceeding 690 and above, you are likely to find better rewards and benefits. But if this is not the case, you can still select a card that offers lesser features by paying a higher rate of interest until you improve your creditworthiness.
How to Select a Credit Card for Bad Credit
Even if you don’t have the best credit, don’t apply desperately for any credit card offer that comes your way. Take time to research the best cards with features including:
- No-Fee Options
It’s alright to pay a small fee for a credit card that improves your credit. But, this fee needn’t be exorbitant. So, look for top credit cards that ask for no annual fee or a reasonable charge. Also, avoid cards that require additional costs like signup costs or monthly fees.
- Easy Payment Method
When applying for a credit card, choose an option that comes with an easy online billing process. Some card issuers lack a proper payment system that causes more delays and issues down the line. Avoid such issuers and look for the major banks offering multiple payment modes.
- Does it Report to All Three Credit Card Bureaus?
Most credit card bureaus or credit reporting agencies ensure that the credit cards you choose will help to build your credit and bolster your scores. The top three credit card bureaus in the USA are Equifax, TransUnion, and Experian. They gather, update, and maintain credit histories of US consumers. Choose cards that are recommended by these unions.
Top Credit Cards for Bad Credit
These are our top picks for credit cards for buyers with bad credit:
1. Credit One Bank Platinum Visa
- 1% cashback on purchases
- Free access to Experian credit score
- Exclusive shopping discounts
- No credit history needed
2. Wells Fargo Secured
- Credit line ranging from $300-$10,000
- Travel and emergency assistance
- Access to FICO credit score
3. Indigo Mastercard
- Fraud protection for theft or lost card
- Mobile account access
- Reports account history to all three credit card bureaus
4. Capital One Secured
- High credit line for first five on-time monthly payments
- Reporting to three main credit card unions
- No annual fees
- Flexibility to choose payment date and method
Before applying for a credit card, check your credit score, and make the right selection. If you pay your bills and purchases on time, you can even repair your bad credit score to upgrade to a high-benefit credit card.