Credit cards can be an excellent tool for boosting your credit score but only if you use them responsibly. Many people with bad credit don’t have any credit cards, which can hurt their scores. A study by WalletHub found that people with bad credit who had at least one credit card saw their score improve by an average of 13 points within four months. Also, using your credit card regularly can help keep your account active, another factor considered in your credit score. Here are some of the best credit cards for people with bad credit:
1. Capital One Platinum Credit Card
If you’re looking for a credit card with no annual fee or a low annual fee, the Capital One Platinum Card is a good option. It comes with a $39 USD annual fee that can be waived by making at least $250 USD purchases within the first three months. This card is designed for people with very bad credit and carries an interest rate of 24.99% variable, which isn’t extremely high compared to other cards on this list. Many people with bad credit who have been accepted for this card see an increase of 100 points or more in their score within six months.
2. BankAmericard Secured Credit Card
The Bank Americard Secured Credit Card is another excellent choice for people with bad or limited credit. Authorized users also enjoy this card’s benefits, which means you can help family members who want to build credit improve theirs. The card has a $200 credit limit and reports to all three major credit bureaus. It requires an upfront security deposit of at least $200 USD, equal to your credit limit. In addition, you must pay a $29 USD annual fee. Be aware that some of the card’s benefits are available only if you have an existing checking or savings account with Bank of America.
3. Discover It Secured Credit Card
The Discover It Secured Card might be a good choice for those who aren’t sure they want to go down the credit card route in the first place. This card will give you a low credit limit, but at a higher interest rate as well, so it’s essentially only for people who need to boost their credit score.
4. nRewards Secured Credit Card
This card is a great option if you’re looking for the best credit card for people with bad credit. Thanks to the nRewards feature, you can earn rewards with every purchase. This card offers a promotional interest rate of zero percent on purchases and balance transfers for 12 months, which is lower than the standard APR of 15 percent. You can earn extra rewards with every purchase, up to $10 for every $1,000 USD you spend.
5. DCU Visa Platinum Secured Credit Card
This card is available to everyone and isn’t based on your credit history and is secured by a bank deposit, which means you have to pay an upfront fee. The fee is high at $250 USD, but it can be an excellent way to build up your credit score if you can make the deposit. This card comes with reasonable interest rates of 12.99% or 16.99%, depending on your creditworthiness at the time you apply.
These are just a few of the best credit cards for people with bad credit. If you want to improve your credit score, use one of these cards responsibly. Remember to make your payments on time and keep your balances low, so you can improve your score and access better financial opportunities in the future.
