Best Bad Credit Cards With A Cosigner
When you have bad credit, it can be really hard to receive a new card. One option is to apply for a secured card, but these always require a costly security deposit. On the other hand, there are also sub-prime cards, but these will have less competitive rates and fees than most credit cards.
Another alternative is to apply for a card that allows you to add a co-signer. By adding a trusting spouse, friend, or relative to the application, you can be approved for virtually any card that your co-signer would qualify for. Just be sure to remember that you and your co-signer will then be equally responsible for the repayment of any charges. Also, not every credit card issuer offers applicants the option of a co-signer.
Here are five of our best credit cards for people with bad credit who can use a co-signer:
The Discover it Miles card offers 1.5 miles per dollar spent on all purchases, and each mile is worth one cent as a statement credit toward travel expenses such as airfare, hotels, car rentals, and cruises. Or, cardholders can redeem their miles for one cent each as cash back. In addition, Discover will double the miles that cardholders earn during their first year of cardmembership, so those purchases have a remarkable 3% return! Cardholders also receive 12 months of 0% APR financing on new purchases. Other benefits of this card include numerous travel insurance and purchase protection policies such as extended product warranty coverage, price protection, and return guarantee insurance. Finally, Discover is also offing a $30 statement credit towards in flight Wifi charges each year. There is no annual fee for this card.
This Discover it card excels in many different areas. As a balance transfer card, account holders can enjoy 18 months of interest free financing on any balance transferred, with a 3% balance transfer fee. Cardholders also receive 5% cash back on up to $1,500 spent each quarter on select categories of featured merchants, and 1% cash back on all other purchases. Discover cardholders also receive a free FICO score each month online and on their statements. The Discover card is widely recognized for its customer service, and it promises that all calls will be answered by 100% U.S. based representatives.
There is no penalty interest rate for this card, and cardholders will automatically receive their first late payment fee waived. There is no annual fee for this card, and no foreign transaction fees imposed on transactions processed outside of the United States.
Simmons Bank is a smaller card issuer that both allows co-signers and offers cardholders very low interest rates. The Simmons Visa Platinum card has an ultra-low standard APR of 7.25%, and a cash advance APR of 11.25%. Other benefits include Travel accident insurance, rental car coverage, and emergency card replacement. There are no balance transfer fees for this card, and no annual fees.
U.S. Bank is a major retail bank that also allows applicants to include a co-signer. Its Perks+ Visa Signature card offers 12 months of interest free financing on both new purchases and balance transfers, with a 3% balance transfer fee. Cardholders also earn double points on gas and groceries and one point per dollar spent elsewhere. Points can be redeemed for merchandise, gift cards, cash back, or airline ticket purchases on over 150 different carriers with no blackout dates. There is no annual fee for this card.
The U.S. Bank FlexPerks Travel Rewards American Express card is offering new cardholders a 20,000 FlexPoints bonus when they spend $3,500 within the first four months of account opening. Cardholders also earn double points at restaurants and mobile phone bills. In addition, they will receive double points for purchases at gas stations, grocery stores, and airfare, whichever category they spend the most on each month. One point per dollar spent is earned on all other purchases. And when cardholders spend $24,000 in net purchases during a calendar year, they will receive a bonus of 3,500 points.
Rewards can be used for merchandise, gift cards, cash back, or airline ticket purchases. For example, 25,000 points can be redeemed for an airline ticket that costs up to $400. In addition, cardholders also receive a $25 airline fee allowance with each award ticket redemption, which can be applied to baggage fees, seat selection fees, or in-flight purchases of food or beverages. So this is a nice way to earn a reward flight without having to pay out of pocket for all of the fees airlines charge these days.
Cardholders also receive access to a full slate of American Express benefits. For example cardmembers can participate in the Luxury Hotel Program which gives them complimentary amenities such as room upgrades, free breakfast, and late checkouts at nearly 1,000 luxury properties worldwide, as well as up to 20% off lowest available rates at select properties. There is also a concierge service that is is available 24/7 to assist with travel, shopping, dining, or entertainment plans. Finally, cardholders receive additional coverage benefits such as worldwide car rental insurance, lost luggage, retail purchase protection and identity fraud reimbursement. There is a $49 annual fee for this card that is waived the first year, and no foreign transaction fees.
About Jason Steele
Jason Steele is freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.