Credit cards for bad credit, help you work on rebuilding your credit history and improving your credit score over time. The best credit cards for bad credit come in two different varieties: secured and unsecured. Secured cards require you to put down a cash deposit that you can borrow against, whereas unsecured cards do not. Both types of cards have certain limitations, but either can put you on the path toward an overall improvement in your credit score.
If you can, I highly recommend getting an unsecured card, like the Credit One® Unsecured Visa® Card .
There are three main reasons why I recommend this card for people with subpar credit:
- Since it isn’t a secured credit card, you won’t have to put down a deposit.
- You have the ability to earn rewards for gas purchases many secured cards don t offer any rewards at all.
- After making several payments on time, you may be able to secure a credit line increase.
Another excellent option for those trying to build their credit is the Total VISA Credit Card issued by Mid America Bank Trust Company pursuant to a license from Visa U.S.A. Inc. Mid America Bank Trust Company; Member FDIC. Although it doesn’t offer a rewards program, it does offer fast or instant approval in certain cases, which is an excellent perk for anyone needing a card that reports to the major bureaus.
Another unsecured card for bad credit that should be at the top of anyone’s list is the Milestone® Gold MasterCard®. Not only does this card offer a quick pre-qualification process that won’t result in a hard inquiry on your credit report, but it also offers custom design options and easy online account access. Adding to the card’s value is the fact that past bankruptcies on your report are usually okay, provided you are using credit responsibly today.
Simple Rules For Getting A Card With Bad Credit
Getting a credit card for bad credit is one of the best ways to begin repairing any credit mistakes you may have made in the past. However, there are a few “rules” that can help guide you towards the best outcome possible. Before you apply, here are some basic tips to consider:
- Know your credit score
- Decide if you want a card or if you really need a short term loan. If its the latter, check out the Best Bad Credit Loan options.
- Sign up for a credit monitoring service
- Don’t apply for the best rewards cards, travel cards, or cash back cards
- Consider using a prepaid debit card if you find yourself falling behind
You first need to understand your credit before you can improving it. How else would you know what improvements to make? Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting agency, which enables you to ensure the information on all of your credit reports is correct and up to date. To get a copy of your free credit report from the three credit reporting agencies, visit AnnualCreditReport.com.
Once you pour through your credit report and analyze the factors that may be negatively impacting your credit score, you can also consider using a credit monitoring service as your next step. Not only can credit monitoring services help you understand what goes into your credit report, but they can also protect you from future negative impacts from fraud or identity theft.