Best Bad Credit Cards Of 2019
Having a troubled credit history does not mean that you are unable to get a credit card. In fact, having a credit card, and using it responsibly, is an important way to begin the process or rebuilding your credit. Thankfully, there are several types of cards that you can qualify for, even with a poor credit history.
One type of card is the secured credit card, which requires that applicants submit a refundable security deposit which then becomes their line of credit. Afterward, these cards can be used just like normal credit cards. That means they can be used to easily reserve rental cars and hotel rooms, and may even offer rental car insurance. In addition, you will have to make minimum monthly payments and will incur interest charges if you carry a balance. The advantage is that these cards are available to nearly all applicants, and your payments will be reported to the three major consumer credit bureaus. In most cases, you must be able to prove your identity and have fully discharged any bankruptcies.
Then, there are standard cards that are made for those who had some credit problems, but whose credit score is not considered bad. These cards will have less competitive rates and fees, but there are still some attractive products available from major card issuers with no annual fee. These products appeal to applicants who do not want to submit a security deposit.
Finally, those with bad credit might consider just using one of the many prepaid products available. These cards are not credit cards and the cardholder can never incur debt by using them. But since cardholders make no payments, these cards will not help or hurt, their credit scores. Otherwise, they can be used in most places that accept credit cards, and they offer a more secure alternative to cash.
Consumers with low credit scores should do everything possible to increase their score. One new tool on the market may provide some help in this area. Add your positive utility payment history to instantly increase your FICO® score. Experian Boost™ helps by giving you extra credit for the utility and mobile phone bills you’re already paying. (Results may vary; see website for details.)
So here are the four best cards for 2019 for people with bad credit:
You can then watch your credit score improve by using Capital One’s Credit Tracker app, which even allows you to examine what would happen to your credit score under different possible scenarios. There is no annual fee for this card, and no foreign transaction fees imposed on charges processed outside of the United States.
With Capital One’s Credit Steps program, cardholders who make their first five monthly payments on-time, will automatically be given a higher credit limit. This card also features Capital One’s Credit Tracker app and has no foreign transaction fees. There is no annual fee for this card.
It has an annual fee between $35 and $99, depending on the applicant’s credit profile. Cardholders enjoy a 25-day grace period at the end of each statement cycle in which to make full payment to avoid interest charges. Finally, this card has a reduced 1% foreign transaction fee, as opposed to many card’s 3% fee.