Credit Cards

4 Credit Cards for Americans With a Bad Credit Score

(Photo by David Corio/Redferns)

Poor credit can prevent you from meeting a lot of financial milestones like getting a mortgage or saving for retirement. Fortunately, the good news is your low credit score doesn’t have to be a lifelong struggle. Banks have designed credit cards specifically for people who have bad credit history. You can search for secured credit cards to help boost your credit score right now online.

Secured credit cards include features like choosing your own credit limit and cashback rewards. There are a lot of options when it comes to choosing a credit card, so it’s important to compare your options online before applying. Search for the best secured credit cards online to find current offers today.

Here are four credit cards you can apply for with a bad credit score.

1. Discover it Secured Credit Card

Highlights

  • No annual fee.
  • Free FICO credit score.
  • Earn two percent cashback.

Summary

With a Discover it Secured Credit Card, you can build your credit score while earning cashback. Customers can earn two percent cashback on up to $1,000 per quarter for purchases at gas stations and restaurants. You can also earn unlimited one percent cashback on all other purchases. Even better, Discover will automatically match the cashback you earned at the end of your first year as a customer.

This credit card has no annual fee and a 22.99 percent interest rate. Moreover, the rate doesn’t change if you pay late.

Choose your credit limit by placing a refundable deposit. After eight monthly reviews, Discover will determine whether you can upgrade to an account without a security deposit. You can keep tabs on this progress by viewing your FICO Credit Score for free.

2. Credit One Bank Visa Credit Card

Highlights

  • Get one percent cashback on purchases.
  • Free access to Experian credit score.
  • Choose your monthly payment schedule.

Summary

If an unexpected event happens and you’re in need of credit, consider the Credit One Bank Visa Credit Card. Since it’s not a secured card, you can receive an initial line of credit for $300.

Credit One will determine your annual fee based on your current credit score. Your interest rate will be between 17.99 and 23.99 percent.

One of the perks of this card is being able to use it anywhere around the world that accepts Visa. You can also earn one percent cashback rewards on everyday purchases such as gas, groceries, and bills.

3. Indigo Mastercard for Less than Perfect Credit

Highlights

  • Qualify even with bankruptcy in your credit history.
  • Quick pre-qualification available.
  • Choose your card design.

Summary

Anyone with bad credit can apply for the Indigo Mastercard for Less than Perfect Credit. You can use this unsecured credit card to improve your credit score by paying bills on time and not maxing out your credit limit. Your activity will be reported to major credit bureaus monthly to help relieve your credit score over time.

With this card, you’re only given a $300 limit. This is good for people with bad credit because it prevents overspending and keeps your limits at a manageable rate.

The annual fee will be either $0, $59, or 75 the first year and $99 after depending on your creditworthiness. Additionally, it comes with a regular interest rate of 24.9 percent.

4. Open Sky Secured Credit Card

Highlights

  • No credit check.
  • Choose your credit limit.
  • Reports to three major credit bureaus.

Summary

New applicants can apply for an Open Sky Secured Credit Card without a credit check. The credit limit is determined by a security deposit. Therefore, the limit can be anywhere from $200 to $3,000. This gives you the freedom to decide which amount is right for you.

This secured credit card has a $35 annual fee and a regular interest rate of 17.39 percent.

To help boost your credit score, Open Sky will report to Equifax, Experian, and TransUnion each month. Customers without a credit score can earn a credit score in as little as six months with this credit card.

Apply Online for These Credit Cards

There are several things you can do to boost your credit score, including:

  • Paying your bills on time;
  • Staying under your credit limit;
  • Increasing the length of your credit history, and;
  • Avoiding frequent credit checks.

Considering how much one’s credit score affects their life, it’s important to make these behaviors regular habits.

Consider getting pre-approved for a new credit card before applying to avoid impacting your credit score. Search for different bonuses the credit card might include like cashback, no annual fees, or free credit score checks. Just make sure to compare each of your options and apply to the one you think is the best fit for your finances.

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