Having bad credit is really “bad” for you. If you are struggling with your financial obligations and your rating is so low, you can expect credit card companies to instantly turn your application down. The same thing happens to people who do not have credit history yet. However, this does not mean that you cannot possess your own credit card. There are ways to still get hold of one and there are those that are specifically designed for people with nonexistent or bad credit rating.
If you would like to start building or rebuilding your credit today, you can opt for credit builder credit cards, such as a secured card. Just like a prepaid card, a secured account lets you develop good spending and repayment habit. The huge difference is that a secured card can help establish your credit rating.
Here are your top choices for a credit card when building your credit history:
Capital One® Secured MasterCard®
Though this card has an annual fee and does not offer rewards, this is ideal for people who have bad credit. Capital One® Secured MasterCard® has no application fees and it does not require credit check. Being one of those considered as quick approval credit cards, you may be able to get approved for this card within just a few days. The best thing about this card is that it automatically reports your activities to the three major credit bureaus, making it a great tool for building your credit. This card provides tracking tools that allow you to track your credit and transactions, thereby helping you to keep track of your expenditures. This also has a credit score checker that allows you to be updated of your current rating.
U.S. Bank Secured Card
This card comes with an annual fee. However, if you want a card that allows you to maintain a high credit limit, this card would be good for you. You may be allowed to have a limit of up to 5,000 with this card. However, there is a catch. You need to deposit such an amount to your account first before you can make use of the card’s high credit limit. The APR on both purchases and balance transfer of this card is quite favorable considering that you have bad credit.
Bank of America Secured Card
This does not have a rewards program as well and this also comes with an annual fee. However, what makes it enticing is its no interest on purchases offer. It also offers a high credit limit, provided that you have deposited the equivalent amount into your account.
Wells Fargo Secured Card
This card has an annual fee, but it is not as high as the other secured cards in the market today. If you have bad credit, this card is one of your best options. There are a few requirements that you need to comply, though. First is that you should be out of bankruptcy for at least a year as you submit your application. Second is that you should not have any unsettled lien. With this card, you can enjoy extremely high credit limits of up to $10,000, provided that you have deposited the same amount into your account.
Orchard Bank Classic Card
The best thing about the Orchard Bank Classic card is that it allows you to submit an application and to have a chance of getting approved even though you may have declared bankruptcy recently. It is important, however, that you are able to prove your identity. No matter what your credit score is at the moment, approval rate is high so you can have this credit card as quickly as you want. The annual fee is waived for the first year and the minimum security deposit is $200.
The cards listed above can be considered credit builder credit cards. However, this does not mean that you are free to spend on whatever catches your fancy with these cards. You still need to be vigilant and to be a wise spender to get the most out of these secured cards.