Top 6 Credit Cards For Bad Credit in 2020
Most individuals with poor credit don’t have a lot of options when it comes to credit cards. In fact, most people with bad credit don’t even apply for a credit card for fear of being rejected. But that doesn’t have to be the case, as there are a variety of card options for individuals with less than stellar credit. And the good thing is, if you build your credit standing with these cards, you can eventually be approved for a more attractive credit card that extends a larger and less expensive line of credit.
You are not going to find strong rewards programs on these cards, and they will typically have high interest rates. The cards below are good options for individuals with poor credit or those who are starting out and want to get access to credit. You don’t have to feel shut out of the card market any longer.Capital One® Secured Mastercard® customer must submit a refundable security deposit of $49, $99, or $200, depending on your credit worthiness. You will then receive a credit line of $200. You will also get access to a higher credit line after making your first five monthly payments on time with no additional deposit needed. You will build credit by using this card since it reports to all three of the major credit reporting bureaus. This card does not have an annual fee, and has an interest rate of 26.99% (Variable).
First Access Visa® Credit Card has an easy and secure online application. You will be charged a program fee but only if you are approved for the card. Once approved, you will have access to a certain credit limit, and your timely payments will be reported to all three credit bureaus. You may be able to receive your card more quickly with optional Expedited Processing (additional fee applies).
Milestone® Mastercard® – Less Than Perfect Credit Considered is a nice option for those with bad credit. You can pre-qualify for a card and it will not impact your credit score. Cardholders receive fraud protection in the event of a stolen card, and have mobile access to their account at any time. Your account history is reported to the three major credit bureaus. There is an annual fee ranging from $35-$99*. The ongoing APR is 24.90%. The foreign transaction fee is 1%, less than the average for the industry.
Surge Mastercard® Credit Card is offered by Continental Finance to applicants with any credit profile, including those with a limited credit history or poor credit. This card features a fast and easy application process, with results provided online. New applicants will receive an initial credit line of $500, subject available credit. This card is offered as a standard card, or secured version of this card, which requires you to submit a refundable security deposit before your account can be opened. The amount of your security deposit will then become your available credit. The standard interest rate on the card is high and is a variable rate based on the Prime Rate so you’ll want to look at the rates and fees before applying. However, your payment due date will be at least 25 days after the close of each billing cycle. By paying the statement balance in full and on-time, interest charges will be waived. To begin using your card, you must first pay an annual fee. There is also a monthly maintenance fee associated with the card. The amount of these fees will be deducted from your available credit. For example, if you have a credit line of $500, your annual fee will be deducted from that initial credit limit until it has been paid off.
Discover it® Secured apart from a number of other secured cards is the cash back feature. Cardholders can earn 2% cash back on all gas and restaurant purchases up to $1,000 in combined purchases each quarter; and 1% cash back on all other transactions. Plus, Discover will match your cash back rewards at the end of the first year. The card requires a security deposit of at least $200, and reports to all three major credit bureaus. After eight months of responsible use, Discover will consider transitioning you to an unsecured card. It has a standard APR 24.49% Variable for purchases, and an introductory APR on balance transfers for the first six months as a cardholder. There is no annual fee or foreign transaction fee on this card.
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.)
For those without access to high-end credit cards, these cards are possible options. You might have to deal with security deposits and other fees that higher end credit cards may not have. In addition, most of these cards will not give you rewards programs that are offered to consumers with good credit scores. If you need access to a line of credit in order to make purchases from month to month, you should look at the listed cards and figure out which one best fits your lifestyle.