If you are like many people, you might struggle with large amounts of debt and bad credit. This can come about if you have improperly used credit cards in the past and found yourself overwhelmed once it came time to pay the balance.
As a result of such financial trauma, your credit score can take a nosedive. However, there is hope in sight to gradually improve both your score and your creditworthiness. The top five credit cards for bad credit can help.
Capital One Secured MasterCard
Perhaps the best option for those who struggle with poor credit scores is a good secured credit card. The Capital One Secured MasterCard carries no annual fee and allows you to work your way up from bad credit to a good score with responsible usage. The card works on a security deposit you make in amounts of $49, $99 or $200 depending on your creditworthiness.
To start, you will get a $200 credit line, but over time, when you use the card responsibly and make your first five monthly payments on time, you can gain access to a higher credit line. Your regular APR for both purchases and balance transfers is 24.99 percent. You can be approved for this card with a credit score averaging at around 524. After using the card for a certain period of time, you can even work your way up to a regular, unsecured credit card.
Credit One Bank Visa Card
Even with low credit, you can still sign up for a card that gives you rewards. The Credit One Bank Visa is one of the best, even for people with low credit scores. The annual fee ranges from free up to $99, but you can enjoy 1 percent cash back rewards on a variety of purchases in certain categories, such as gas, groceries, cable or satellite TV, Internet and cell phone service. The regular APR on the card ranges from 19.99 to 25.99 percent.
Set up custom alerts through your email or text messages so that you will always be reminded of when a bill payment is due. You can get alerts for when a payment has been processed or when your available credit begins to run low. You also get free access to your online credit report and score through Experian, which helps when you want to improve your credit. With the card, you also receive fraud protection against unauthorized charges when you have a Credit One Bank account.
Total Visa Unsecured Card
The Total Visa card is good for those who have low credit and who have a checking account. There is an $89 processing fee for those who are approved, but the card helps you by reporting your usage to the three major credit bureaus on a monthly basis. By making payments each month and you will be rewarded in the long run as your score gradually improves. The APR is on the high side at 29.99%. Over time, as your credit improves, you can move on to another card.
Credit One Bank Unsecured Visa with Cash Back Rewards
The Credit One Bank Unsecured Visa is a great option if you have bad to fair credit. You can feel more secure with Fraud Liability, which protects you if you lose the card or it gets stolen. Enjoy 1% cash back rewards on numerous shopping categories. These categories are groceries, gas, and services like cable or satellite TV and your cell phone. The card is not secured but is a regular unsecured card that can help you increase your score over time with responsible usage and timely payments.
After a while, you may also be offered a higher credit limit as Credit One Bank evaluates all accounts for that opportunity. You can also get free access online to your score and report through Experian. Download the Credit One Bank mobile app for quick and easy access to your account right from your smartphone or tablet as well.
First Premier Bank MasterCard
Another good card for bad credit users is the First Premier Bank MasterCard. You need a checking account to qualify, but you can rebuild your credit as a fresh start with this card. Your usage is reported to the Consumer Reporting Agencies every month and you can keep track of your progress. Your FICO score is offered on a quarterly basis on your monthly billing statement. There is an annual fee of $75 to $125 for the first year and $45 to $49 thereafter. The regular APR is 36 percent.