Can You Get a Low Interest Credit Card with Bad Credit?

Can You Get a Low Interest Credit Card with Bad Credit?

July 16, 2019         Written By Bill Hardekopf

Many Americans struggle to find a credit card with a low interest rate due to their bad credit score. If you are one of them, know you are not alone.

While it may be difficult for you to get a traditional unsecured credit card with a low interest rate if you have bad credit, there are a number of products available to those with bad credit.

One of the best options you have when your credit is bad is to opt for a secured credit card. With a secured card, you make a deposit, and will be granted a credit line up to the amount of your deposit. Since the card is secured with your funds, you may enjoy a more competitive interest rate. For example, The Applied Bank® Secured Visa® Gold Preferred® Credit Card offers cardholders an APR of 9.99% (Fixed). The downside to these cards is that you may have to pay an annual fee.

If you would prefer a traditional unsecured credit card, you do have some options, but you will pay a higher APR on your balance. The  Credit One Bank® Unsecured Visa® for Rebuilding Credit allows you to see if you pre-qualify without affecting your credit score. You may have to pay an annual fee, and the interest rate will range from 17.99% to 23.99% Variable, but you will earn 1% cash back on all purchases.

No matter which card you choose, it is important to follow a few basic tips to ensure you are improving your credit and not making your situation worse. First of all, you will want to use the card responsibly so you’re not accumulating a large balance you cannot pay off. One way to improve your credit is to maintain a low debt-to-credit ratio. This means you want to use no more than 30% of your available credit.

To make sure you’re not overspending, you may want to use your card only for a recurring bill you already know you can afford. For example, if you have a mobile phone, you can use your card to automatically pay your bill each month. By signing up for autopay, your mobile service provider may cut you a deal on your bill as well.

As you are rebuilding your credit, it is also important to pay at least the minimum balance on time every month. A history of on-time payments is the most important aspect of your credit score. Depending on your current score, if you make on-time payments for six months to a year, you should start to see an increase after that period of time.

The information contained within this article was accurate as of July 16, 2019. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.