Do Major Banks Offer Credit Cards For Bad Credit?

Do Major Banks Offer Credit Cards For Bad Credit?

December 30, 2016         Written By Jason Steele

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Have you ever wondered if there are major banks that offer credit cards to people with bad credit? There are many reasons why millions of Americans have bad credit, including divorce, foreclosure, medical bills, and job loss. And other times, people have bad credit after getting into trouble with debt, and failing to make their monthly payments. Thankfully, there are credit cards offered to people with a bad credit history.

The types of banks that offer credit cards to people with bad credit

There are actually quite a few credit cards offered to people with bad credit. Many of these credit cards are issued by relatively small institutions that specialize in offering products to people with bad credit. On the other hand, there are also several major banks that also offer these kind of cards.

But while the smaller card issuers may offer standard unsecured cards, most of the cards issued by major banks to people with bad credit are secured cards.

How secured cards work

A secured card is much like a standard, unsecured card, except you must first submit a refundable security deposit before your account can be opened. Typically, your available credit is determined by the amount of your refundable security deposit.

However, a secured card account works just like a regular, unsecured card. You will receive a statement each month, and you must make a payment. And if you choose to carry a balance, then you will incur interest charges at the standard rate. Otherwise, no one will know you are using a secured card. Just like any other card, your payment history is reported to the three major consumer credit bureaus. Many secured card users are able to qualify for a standard, unsecured card after making on-time payments for a year.

Also, secured credit cards offer many of the same features and benefits of standard, unsecured cards. For example, secured cards can offer purchase protection policies such as extended warranty coverage and a damage and theft protection policy. Secured cards can also feature travel insurance policies such as auto rental collision damage waivers.

Here are two cards you can get, even if you have bad credit:

Capital One® Secured Mastercard®

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The Capital One Secured Mastercard is offered to applicants with any credit history, including poor credit. To open an account, you must go through a three-step process. First, you complete and submit your application. Upon approval, you will then be notified of the amount of the refundable security deposit that you will have to submit, which will be $49, $99 or $200 based on your creditworthiness. As a result, you will receive a credit line between $200 and $3,000.

Finally, you must submit your refundable security deposit before receiving your card within two to three weeks. Once received, this card works much like any other credit card. This card has a standard interest rate of 26.74% (Variable) that applies to purchases, cash advances, and balance transfers. It also includes most of the same features and benefits of Capital One’s other cards including extended warranty, auto rental, and travel accident insurance, as well as travel assistance, roadside assistance, and price protection. You receive complimentary access to Capital One’s Credit Tracker app. There is no annual fee for this card, and no foreign transaction fees.

Green Dot primor® Visa® Gold Secured Credit Card

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The Green Dot primor® Visa® Gold Secured Credit Card is an attractive secured card with its low 9.99% fixed APR on purchases; and there is no penalty rate. Credit lines are available from $200 to $5,000, and there are no processing or application fees. There are no minimum credit score requirements with this card, and it has a fast application process. You can secure your credit line with your Personal Savings Deposit account. The Green Dot primor® Visa® Gold Secured Credit Card reports to three national credit bureaus. Unlike the other two cards, there is a $49 annual fee for this card.

Bottom line

If you have bad credit or a limited credit history, you can still have a credit card account from a major bank. By considering a secured card, you can get the credit you need from a name that you trust.

The information contained within this article was accurate as of December 30, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Jason Steele

Jason Steele is a 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.
View all posts by Jason Steele
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Top Features : Good credit or bank account not required; initial security deposit can be as low as $200
Top Features : No annual fee; builds credit by reporting to major credit bureaus; initial security deposit can be as low as $200
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Top Features : Builds credit by reporting to all 3 major credit bureaus; low fixed 9.99% interest rate; no penalty rate
Top Features : Reports to all 3 major credit bureaus; no credit history or minimum score required for approval