With many families still dealing with the after-effects of the recession and a reduction in spending power, the need for credit cards designed for people with poor credit is higher than ever. In addition, finding cards that don’t require a large deposit is important for anyone who is just starting to rebuild his or her credit and doesn’t have significant savings.
Here are a variety of cards that help those with bad credit get a credit card.
First Premier Bank Classic
To apply for the First Premier Bank Classic credit card, applicants must have a checking account, and all that’s required to create the account is payment of a processing fee. The creditor also offers an optional payment protection plan, which may help just in case a cardholder has a financial emergency.
Credit One Bank Platinum
Applicants with a credit score that ranges between 620 and 659 have a fair chance of obtaining the Credit One Bank Platinum card. One of the best benefits of this card is that the creditor regularly reviews the cardholder’s credit for a potential increase in credit line. Additionally, cardholders benefit from 1% cash back gas rewards, which is a welcome feature on a card appropriate for those with fair credit since basic cards often don’t feature bonuses and extras.
Capital One Secured MasterCard
The Secured MasterCard from Capital One is a terrific card for rebuilding credit. Capital One will report regularly to the three major credit bureaus to help build a cardholder’s credit as fast as possible. The company also offers free credit score monitoring that can help account holders keep better track of their credit. This card offers a variety of low security deposits, so it’s great for applicants who don’t have significant funds on hand for a large deposit.
USAA Secured Platinum
The unique feature of the USAA Secured Platinum card is that it requires a deposit, but it’s one that is actually a certificate of deposit (CD) that earns money and grows over time. A CD is a terrific way to start building an investment portfolio, and this card help cardholders build a better credit score. The card also features a low balance transfer and cash advance fee of 3%. Other cards charge anywhere from 5% to 10%.
First Progress Platinum
The First Progress Platinum card is an appropriate card for anyone who doesn’t yet have a lengthy credit history or high score. Building credit takes time, and it can be difficult to qualify for credit without a past history that showcases responsible borrowing and credit card use. The annual fees for the First Progress Platinum are quite low, and applicants may also get a cash advance APR as low as 18.99%.
Each of these cards will help an applicant build a better credit score and eventually qualify for even better cards with high limits and generous benefits. Obtaining a credit card is essential for building credit, and responsible card ownership is something that banks and lenders want to see when an applicant comes in for other financial accounts like mortgages, personal loans, and car loans.
About the Author
James Spencer is a leading debt collector Sydney specialist. With over 15 years’ experience working as a thought leader across a number of industries like consultancy and accounts receivable optimisation, he also services as a debt collector Perth and debt collection Adelaide and has built a reputation as a pioneer in providing practical knowledge and guidance for both SMEs and large enterprises across the world. With a strong following in the finance industry, James often attends conferences to key note on operations management and debt recovery management to help executives optimise their process and reduce operational deficiencies.