Unfortunately, more and more people have problems paying off their debts which eventually leave them with a bad credit score, but this isn’t surprising considering the state of the market and economy. However, having access to all the financial advantages a good credit score provides isn’t out of reach for you if your score has gone down in recent years. The solution is to use the right credit card to meet your needs.
If a bad financial history is preventing you from getting a mortgage, apartment lease, or a car loan, we’ll show you some of the best credit cards for people with a bad credit record and share some tips and tricks to help you rebuild your score. Continue reading and you’ll find out more below.
Capital One Secured MasterCard
By signing up for a secured MasterCard from Capital One, you can not only improve your credit history, but also build your score back up. Capital One offers a simple way to track your credit score through a service called Credit Wise. Moreover, it enables you to pick the optimal credit line for your particular situation and spending needs. Opening a credit line is easy and requires that you deposit anywhere from $50 to $200 into your account. As you make payments on time, your credit score will begin to rise, and then you won’t be required to place additional deposits to your account. (1) This card also comes with an app ideal for tracking progress and planning a budget on your smartphone so that you can have all the information with you. Finally, there are no annual fees for holders of this secured MasterCard.
Indigo Platinum MasterCard
People, who’ve gone through financial problems resulting in a bad credit score and who have trouble finding a good credit card company, should look to the Indigo Platinum MasterCard for a solution. Unlike other cards, this one doesn’t make you place deposits if you want to open a new line of credit. Instead, holders have to pay just a simple and relatively small annual fee. Of course, you must make payments on time if you want to raise your credit score and avoid having to pay a high-interest rate. Even those who have declared bankruptcy in the past, can easily apply for the Indigo Platinum MasterCard and are likely to get approved. (2)
Credit One Bank Unsecured Visa
Those that apply for the Unsecured Visa credit card from Credit One bank,t can be assured that the application process won’t bring their score down further with hard inquiries about their credit. As such, this is one of the best credit cards for low credit scores. Like with other cards, it’s important that your monthly payments are on time, which can also qualify you for a 1% cash back reward for everything that you buy with this card, even if you’re starting out with a bad score. Lastly, there is an annual fee that comes with this account, but it also offers plenty of flexibility when it comes to due dates for your payments. (3)
How to Rebuild Your Credit Score
When looking to either start a good credit history or rebuild a damaged or low credit score, there are some useful tips and tricks that you can follow that can help significantly.
As you might already know, applying for many different credit cards can further lower a credit score due to inquiries on your record. Companies issuing credit cards are thorough and make sure to check every new applicant before approving, which can take quite a toll on your annual credit score if you have to apply for multiple cards. That’s why it is important to give yourself enough time to research your options prior to putting in a request for the credit card you need.
The cards we outlined above can all be an excellent solution, not only because they let you build up a positive financial history, but also because they let you prequalify. Prequalifying for a credit card means that you do not get a hit on your credit score before you find out whether you are eligible to receive one.
Everyone makes at least a few bad financial decisions during their life, but why should you suffer the consequences of a bad credit record any longer than it is absolutely necessary? By getting yourself a new credit card you can turn the tide around and finally start to bring your score up as you rebuild your finances.