Deciding how to get a credit card with bad credit means you may have to do some research.
Credit card options are limited when bad credit is involved. Just know that finding a credit card with bad credit means it won’t be a fancy rewards card or even one with exclusive perks.
Instead, it will be a credit card that will help rebuild credit. And, once you have accomplished the goal of building a better credit history, you can move on to a better card.
Use your new card responsibly to build your credit history. All payments must be on time, every month. Late payments kill credit scores. If you want to avoid paying interest, pay in full each month.
The most useful strategy for improving your credit scores is to maintain a low account balance. Low credit utilization can do wonders to raise your credit scores.
That means if your credit limit is $500, never use more than 10 percent of your available credit if you plan to carry a balance from month-to-month. You can do this by using the card sparingly or making multiple payments each month.
How to get a credit card with bad credit
1. Unsecured Credit Cards
The FIT Mastercard® Credit Card
The Fit Mastercard® is designed for people with less than perfect credit. It features an initial $400 credit limit (subject to available credit). People with bad credit are welcome to apply. With on-time monthly payments you can help improve your credit score because this card features monthly reporting to the three major credit bureaus.
With free access to your Vantage 3.0 score from TransUnion (When you sign up for e-statements), it will be easy to monitor your credit score. Mastercard® is accepted everywhere to see the Mastercard® logo. You will need a checking account in order to apply for this card but don’t worry if you don’t have one. Open a checking account for bad credit to satisfy this requirement.
The Surge Mastercard® Credit Card
The Surge Mastercard® credit card features a $500 credit limit (subject to available credit) and monthly reporting to the three major credit bureaus. All credit types welcome to apply plus you’ll get results in seconds! The application process is fast and easy.
Keep an eye on your credit score with free access to your Vantage 3.0 score From TransUnion* (When you sign up for e-statements). Build credit with on-time payments that are reported monthly to the three major credit bureaus. Easily manage your account with free online account access 24/7. A checking account is required.
2. Secured Credit Cards
The First Progress Platinum Elite MasterCard® Secured Credit Card
Consumers with bad credit need to replace bad credit with good credit. The First Progress Platinum Elite MasterCard® Secured Credit Card is designed to help individuals build or rebuild their credit. Mastercard® offers worldwide acceptance. Your credit line is based on a security deposit, rather than on a credit score. The security deposit can be as low as $200 up to $2,000. No credit history or minimum credit score required for approval. It only takes a few minutes to apply. This is a Nationwide Program though not yet available in NY, IA, AR, or WI.
OpenSky Secure Visa® Credit Card
The OpenSky Secured Visa® Credit Card does not require a credit check and no checking account to apply. The application process takes about 5 minutes. You choose your credit line as low as $200 up to $3000, secured by a fully-refundable* security deposit. The security deposit needs to be submitted before the credit card can be issued. Get extra credit when you need it by increasing your credit line up to $5000.
Customers get access to online financial education resources. If your score isn’t where you want it to be, the OpenSky® Secured Visa® Credit Card is the ideal tool to use to improve it. The credit card issuer says “99% of our OpenSky® Secured Visa® Card cardholders who started without a score were able to build their credit score in as little as 6 months.”
3. Online Retail Credit Accounts
Gettington Credit is an unsecured retail card. There is no annual or over-limit fees, a low APR and two payment options. Customers can shop online with confidence knowing there is fraud liability protection. Easily manage your account online while choosing from top brands from electronics and housewares to jewelry and apparel. Get the credit you deserve to buy the products you love at Gettington.com. Apply Now to get an instant credit response.
Fingerhut makes it very easy to qualify, they consider all credit scores. With over 700,000 brand-name items, Fingerhut gives you a chance to build credit while enjoying some of your favorite products. Get $25 off your order of $100 or more** – Enter promo code: NCFXX at checkout. Find out quickly if you’re pre-approved for a WebBank/Fingerhut Credit Account. Fingerhut reports to all three major credit bureaus. Find out more with a full Fingerhut review.
Make wise financial decisions
The desire for a credit card does not solely rest with spending. Credit cards are needed in certain situations and a matter of convenience in other situations. Renting a car, reserving a hotel room and even an emergency repair may involve the need for a credit card.
Avoid any credit card offer that is too costly. Even though the Credit Card Act of 2009 capped upfront fees to 25% of a credit card’s limit, some subprime credit card issuers are finding ways around the law by charging upfront processing fees.
For some consumers, the upfront fees may be worth rebuilding credit. However, you must keep in mind credit card balances should be kept to no more than 30% of the available credit limit in order to increase credit scores.