What Are the Best Credit Cards for Those with Poor Credit?

Best Credit Cards for Those with Poor Credit

Credit cards are incredibly useful financial tools that can help you build your credit score, earn rewards, and manage your finances. However, if you have poor credit, it can be challenging to find a credit card that you can qualify for. Fortunately, several options cater to people with poor credit scores. In this article, we will explore the best credit cards for those with poor credit and how to use them to your advantage.

Secured Credit Cards

Secured credit cards are an excellent option for people with poor credit scores because they require a security deposit that becomes your credit limit. This deposit reduces the risk for the credit card issuer and can help you establish or rebuild your credit score. Two of the best-secured credit cardsfor those with poor credit are the Discover it Secured and the Capital One Secured Mastercard.

Discover it Secured

The Discover it Secured card is an excellent option for people with poor credit because it has no annual fee, and it offerscashback rewards. You can earn 2% cashback at gas stations and restaurants, up to $1,000 in combined purchases each quarter, and 1% cashback on all other purchases. Additionally, Discover will match all the cashback you earn during your first year.

Capital One Secured Mastercard

The Capital One Secured Mastercard is another excellent option for people with poor credit. It has no annual fee, and you can qualify for a credit limit of up to $1,000 with a refundable security deposit. Capital One reports your credit activity to all three credit bureaus, so you can establish or rebuild your credit score.

Unsecured Credit Cards

Unsecured credit cards are another option for people with poor credit scores, but they typically have higher interest rates and fees than secured credit cards. However, if you can qualify for an unsecured credit card, you will not have to provide a security deposit. Two of the bestunsecured credit cardsfor those with poor credit are the Credit One Bank Platinum Visa and the Indigo Platinum Mastercard.

Credit One Bank Platinum Visa

The Credit One Bank Platinum Visa is an excellent option for people with poor credit because it offers cashback rewards and has no annual fee for the first year. You can earn 1% cashback on eligible purchases, and Credit One Bank will review your account periodically to determine if you qualify for a credit line increase.

Indigo Platinum Mastercard

The Indigo Platinum Mastercard is another option for people with poor credit. It has an annual fee of up to $99, depending on your creditworthiness, but it offers pre-qualification without impacting your credit score. Additionally, Indigo reports your credit activity to the three major credit bureaus, so you can establish or rebuild your credit score.

Conclusion

If you have poor credit, there are several credit card options available to help you establish or rebuild your credit score. Secured credit cards are an excellent option because they require a security deposit that becomes your credit limit, reducing the risk for the credit card issuer. Unsecured credit cards are another option, but they typically have higher interest rates and fees than secured credit cards. It is essential to use your credit card responsibly, pay your bills on time, and keep yourcredit utilizationlow. By doing so, you can improve your credit score and qualify for better credit cards in the future.