So, you missed a few payments, avoided your debt for too long, or made other mistakes that tanked your credit score. Don’t give up hope just yet; there are still cards you can apply for, even with your tarnished credit. In fact, using a credit card for your monthly expenses can be a great way to repair your score, if you make your payments properly.
Looking for a credit card that you apply for with a bad score? Here are five of the best options for people in your position.
Discover it Secured Card
Although Discover wasn’t always usable at every location, it’s now accepted by almost any vendor throughout the country. This card comes with no annual fee and can get you a dollar-for-dollar match on all the cash back you earn, so it’s a great option for people looking to pocket a little extra money. As you continue you to build your credit, you can upgrade the card and maybe even transition to an unsecured line of credit.
Capital One Secured Mastercard
This is hands-down one of the most recommended cards for people with low credit scores. It reports to all three major credit bureaus and is known for helping people rebuild their scores, as long as they use the card responsibly. The credit line starts at just $200, but after five months, you can increase the credit line if you’ve made the payments as needed. Keep in mind that this card does have a high APR, so it’s best to pay off each statement in full.
Citi Secured Mastercard
Straightforward and easy to start using, the Citi Secured Mastercard gives you a secured line of credit as soon as you make your deposit. As long as you keep making your monthly payments, the card will help you improve your history and eventually allow you to apply for an unsecured credit card, once your score is healthier. However, this card doesn’t offer any rewards, so you may want to consider other options if you’re looking for a cash back or points program.
USAA Secured Card American Express
Basically, you put a deposit on this card, and that becomes your credit card’s limit. Use it to cover your monthly expenses and watch as you slowly rebuild your damaged score. Added bonus: this card has no foreign transaction fee, so you can travel outside of the U.S. without spending extra money on purchases.
USAA Secured Card Platinum Visa
Think you can’t obtain a Visa card without a great credit score? Think again. You can determine your own limit with this card based on the deposit you make. Like the USAA Secured Card American Express, there are no transaction fees. Plus, the card has special benefits for military members and a support team that’s always willing to help.