Credit Cards For Bad Credit Or No Credit

Credit Cards For Bad Credit Or No Credit

July 12, 2016         Written By Jason Steele

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Millions of Americans have either bad credit or no credit at all. When you are in this situation, it can be extremely difficult to establish a credit history. But without a credit history, it is also a challenge to be approved for a new credit card account. Thankfully, there are credit cards that are specifically designed for people who have bad credit or no credit.

There are many reasons why people might have bad credit. For example, some have trouble paying their medical bills while others have payments that are missed during a divorce. Other times, people have bad credit following job loss or a foreclosure.

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Perfect credit not required; Reports to major credit bureaus

In addition, there are some that have no credit at all. This includes young adults or anyone who has never borrowed money. Other people with no credit are those who have never taken out a loan in their lives, only to realize that they will have trouble being approved for a credit card because they have no credit history at all.

If you have bad credit or no credit, consider these four cards:

Capital One Secured Card

Capital One is one of the top credit card issuers for people with all credit histories, but it also offers a secured card for those with bad credit or no credit. New applicants first submit a refundable security deposit of $49, $99, or $200, depending on their creditworthiness. Then, you will receive a credit line between $200 and $3,000, and your card will work just like any other credit card.

You will receive a statement each month, and must make a minimum payment. When you make on-time payments for the first five months of your account, you can receive a higher credit line automatically. Other benefits include extended warranty coverage, auto rental insurance, and a price protection policy. The standard interest rate for purchases is 26.99% (Variable). There is no annual fee for this card, and no foreign transaction fees.

First PREMIER® Bank Secured Credit Card

The First PREMIER Bank Secured Credit Card is a secured card that is also a Mastercard. As a secured card, if approved, you will need to fund a security deposit to open the account. The security deposit is fully refundable, when you close your account with a $0 balance. Once the security deposit is funded, the card will work just like any other credit card. You can make purchases without anyone knowing it is a secured card. You will receive a monthly statement and can avoid interest charges on purchases by paying the entire statement balance in full on or before the due date.

Journey® Student Rewards from Capital One®

If you are a student with no credit history, this could be the right card for you. The Journey® Student Rewards Card from Capital One® offers 1% cash back on all of your purchases, and an additional 0.25% rewards when pay on time each month. You can also use Capital One’s CreditWise program to monitor your credit score each month. In addition to offering you a credit score, this program includes a what-if simulator to let you see how your credit score can be affected by potential future decisions.

Cardholders also receive automatic access to a higher credit line after making five on-time payments as part of its credit steps program. Cardholder benefits include extended warranty coverage, auto rental insurance, and a 24-hour travel assistance hotline. The standard interest rate for payments is 26.99% (Variable). There is no annual fee for this card, and no foreign transaction fees.

Official NASCAR® Credit Card from Credit One Bank®

Credit One specializes in offering cards to those with bad credit or no credit history, and it is the official credit card of NASCAR. For those with rebuilding credit, the Official NASCAR® Credit Card from Credit One Bank® offers 1% cash back on all gas and automotive purchases, and double cash back on all NASCAR.com purchases.

Cardholders can stay informed about their account using alerts that can send notifications via email or text messages. You are also protected against fraudulent charges by a Zero Fraud Liability policy.

This card features a minimum credit line of $300, not including any annual fees owed. The interest rate and annual fee that you receive will vary with your credit range, but those with rebuilding credit will receive an interest rate of 17.99% to 23.99% Variable and an annual fee between $0 – $99, depending on their creditworthiness. There is also an authorized user participation fee of $19 annually.

The information contained within this article was accurate as of July 12, 2016. 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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jasonsteele

About Jason Steele

Jason Steele is a journalist that covers credit cards, travel and consumer credit. As one of the nation's leading experts in credit cards, Jason has contributed to dozens of travel and personal finance outlets including NerdWallet, Credit Karma and the Points Guy, where he serves as the Senior Points and Miles Contributor. Jason has also been widely quoted in mainstream media in outlets such as the Washington Post, the USA Today and Bloomberg Business Week. Jason is also the founder and producer of CardCon, which is the annual Conference for Credit and Credit Card Media.