New Credit Cards For Folks With Poor Credit
Let’s face it: Your credit is pretty important. Having poor credit prevents buyers from getting a mortgage, drivers from getting an auto loan, and renters being approved for an apartment. And that’s just the beginning!
Truthfully, bad credit can happen to just about anyone. It’s not necessary to be an irresponsible spender — especially during these times, just losing your job before paying off previous debt can be the nail in any financial coffin. Yikes!
Life isn’t static, of course. It’s possible to recover from poor credit status, but that always requires taking the right steps. Without good credit, it can be difficult to get a credit card to begin building a good reputation up again. But it’s hard to get that tool without first having better credit! Is this really a catch-22?
A secured credit card is a proven way to start repairing your record today. Need a few examples? Here are a few standard card options for people with less-than-perfect credit.
Secured Credit Cards: What Are They, Really?
Secured credit cards are one option for those with no credit history, or bad credit records.To begin, you must submit a cash deposit as collateral. That deposit will probably be around the same size as the credit limit on the card. So what’s the point?
Your card company will hold the deposit in the event you aren’t able to pay off your monthly bill. But once you prove your reliability, you will get it back. And then, a regular card is open to you again!
Credit Cards Despite Bad Credit
Behold, popular secured credit cards: The first rung on the financial ladder for second chances!
Discover it® Secured
The Discover it® Secured credit card offers fair rewards, an unusual perk in the market. This card offers 2% cash back at popular restaurants and gas stations and restaurants, up to $1,000 per billing quarter. Plus, there’s 1% cash back on all other buys! What’s more, there isn’t an annual fee. The line of credit under this offer starts at $200, nad goes all the way up to $2,500. After an eight month trial, Discover reviews your account. Then, you may be able to move up to a regular card — unsecured, standard, and on your way to upgraded credit.
Capital One® Secured Mastercard®
The Capital One® Secured Mastercard® can be obtained with no credit history. While it doesn’t offer miles, cash back, or points, it does have one big perk: No annual fee! This card reports to all three big credit bureaus, unlike a prepaid card. With the minimum deposit, a credit line of $200 will allow you to start building a new history. In 6 months, successful payments mean a higher line of credit.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is also available for those with no credit history, but it has a small yearly fee of $35. Again, no additional perks like travel miles come with the card. But it boasts one big stat for consumers to think about: Their cardholders with no credit history received a record with the three major bureaus in just 6 months. Not bad!
Start Rebuilding Your Credit Right Now
Look, poor credit shouldn’t stop you from working on your future. Getting a credit card again might be just the way to do tha. Luckily, there are plenty of options on the market today. Start rebuilding your financial image by doing a free, simple search: Compare credit cards to see which one meets your needs, your way!