When you have a bad credit score it’s difficult to get a credit card or purchase anything on credit or loan. However, having a credit card and making on time payments is one of the best ways to improve your credit. Credit cards are also great to have as backup for financial emergencies or travel. Fortunately, the following credit cards are designed for people in this situation to help them boost their score and rebuild their financial history:
1. BankAmericard Secured Credit Card
The BankAmericard is a secured credit card, meaning that users with a low credit score can put money down to secure the card and set their own credit limit on the card. These cards are specifically designed for users who need to establish or rebuild their credit history. The BankAmericard will allow consumers to secure the card with a line anywhere from $200 to $5,000. Having a higher credit line may help improve your credit score faster, but consumers who want to work on their credit and put down a low security deposit will find a good fit here. The BankAmericard does do regular reviews to possibly remove the security deposit after a history of on time payments. It also comes with the ability to check your credit score within the bank’s app.
2. Discover It Secured Credit Card
The Discover It card is another secured credit card option designed for people with poor credit. Consumers may put down a security deposit as low as $200 and up to $2,500. The security deposit amount will work as the credit limit on the card. Discover It does automatic reviews of your account starting at seven months, at which time you’ll be eligible to convert to a traditional unsecured credit card if you have a strong payment history during that time. The Discover It secured credit card also comes with cash back benefits on your purchases.
3. nRewards Secured Credit Card
The nREwards credit card is another secured option. This card was specifically built to help members of the military establish or rebuild their credit history. The card comes with cash back rewards. For a credit card meant for people with poor credit, it has a low APR of 18%. There is no annual fee and no foreign transaction fee. You will need a membership account with Navy Federal in order to get a secured card with them. To get one, you’ll need to deposit a minimum of $200 to secure the card. After only three months, they will review your account to possibly increase the credit limit without requiring you to deposit more security for the card. In six months, there will be an automatic review to see if you’re eligible for an unsecured credit card.
4. Capital One Platinum Credit Card
The Platinum card from Capital One is designed for consumers with a poor credit history. It is a traditional unsecured credit card, so no money needs to be put down in order to have this card. The card comes with no annual fee and can be applied for online without affecting your credit score. One of the big perks is that there are automatic six month reviews. With a strong payment history, consumers may be able to raise their credit limit on this card. One of the big factors in calculating your score is credit utilization. What this means is that having more credit available to you, but utilizing under thirty percent of it, improves your credit score. Consumers who pay their monthly bill on time, use under thirty percent of the credit available to them, and have their credit line increased regularly, will see improvement in their scores with this card.
5. DCU Visa Platinum Secured Credit Card
DCU membership and a savings account are required to apply for their Visa Platinum secured card. This card comes with overdraft protection. If you overdraft in your checking account, the amount will automatically go on your secured Visa card up to the account limit. This helps you avoid overdraft fees. There is no annual fee and a fairly low APR that is dependent on your credit history. This card is particularly popular with people who want to transfer their balance from an old credit card with a high APR to a new account where they can rebuild their credit and make lower interest payments to get back on track.
