4 Credit Cards for Bad and Limited Credit with Cash Back
When you have bad or limited credit, it can be very difficult to build your credit history. The largest factor in your FICO credit score is your payment history, so you need a new account to build a record of on-time payments. And needless to say, there aren’t many lenders who seek out those with bad credit or a limited credit history.
Thankfully, there are some companies that are willing to offer new accounts to people with these credit profiles. If you have bad credit or a limited credit history, it is vital that you maintain a perfect record of on-time payments with one of these cards. If you manage your new card responsibly, you could qualify for another card with more competitive terms, perhaps within a year.
Here are four cash back credit cards for those with bad credit or a limited credit history:
The Credit One Bank Cash Back Rewards Visa offers credit lines starting at $300 and rewards you with 1% cash back on all eligible purchases, which is posted to your account every month automatically. This card helps those looking to rebuild their credit, as cardholders can track their credit score monthly for free online. You may not qualify for a grace period on interest payments. If this is the case, then you may be charged interest as soon as your purchases are posted instead of after the due date on your monthly statements.
In addition, it takes up to five days to make payments via their standard option, or you can expedite the process for a small fee. The annual fee ranges from $0- $99 annually (dependent upon good your credit is when you applied), plus an additional $19 if you add on another cardholder. There is a foreign transaction fee of 3%.
The Capital One Quicksilver One card offers 1.5% cash back on all purchases with no limits on how much cash you can earn. The minimum credit limit is $300, but you can receive a credit line increase after making your first five payments on time. In addition, you have access to your credit score and other tools to help you with your credit profile for free via Capital One’s CreditWise® tool.
Those looking to use this card while traveling are in luck as there are no foreign transaction fees. There are also other benefits such as travel accident insurance and 24 hour travel assistance services. If you’re on the go a lot, you can now link Apple Pay with any Capital One® card to make your shopping experience more convenient. Unlike the Credit One Bank® Cash Back Rewards Visa card, you get to choose your monthly due date and payment options without being charged an extra fee. Another option is to enroll in the autopay feature so your payments are automatically paid each month. The annual fee for this card is $39.
The Official NASCAR credit card from Credit One offers cardholders 1% cashback on all eligible purchases which depends on your credit. If you have excellent credit, you can get 1% on all purchases. Those with average credit or lower can only get 1% cash back on eligible automotive and gas purchases. All cardholders get double cash back on any purchases made on nascar.com and special access to NASCAR® deals and bonuses. Your APR will also fluctuate depending on what your credit is like, which ranges from 16.65% to 23.65%.
Unlike the Credit One Bank® Cash Back Rewards Visa card, this one gives you the flexibility to pick your payment date. You also get access to free monthly tracking score tracking and reviews for credit increase opportunities automatically. If you like having reminders to make payments, you have the option of receiving email or text messages to alert you when you have a payment due. The annual fee for this card ranges from $0 to $99 depending on how good your credit is, and a 3% foreign transaction fee.
The Journey Student Rewards card is perfect for those who do well with incentives to motivate them towards good financial habits. Cardholders get 1% cash back on all purchases. As a reward for paying your balance on time, it offers an additional 0.25% cash back if you do so for up to five months for a total of 1.25%.
Even though you may start with a low credit limit (the minimum is $300), you can get access to a higher one if you make five payments on time. If you travel abroad anytime during your studies, there are no transaction fees. You also have access to a host of other services such as automotive rental insurance, travel accident insurance and 24 hour travel assistance services. Those looking to improve their financial literacy will be happy to know that there is a Capital One community where you can ask questions or interact with others on various personal finance topics. There is no annual fee for this card or foreign transaction fees.