There are two sides to credit cards. They provide the ease of cashless transactions and credit building on the one hand. But, if not handled carefully, they might result in debt. Getting a credit card is an impossible dream for someone with poor credit. It’s not all bad news, either. Some credit cards are intended exclusively for those with less-than-perfect credit. This blog will explore the 12 most accessible credit cards to get approved for if you have bad credit.
1. A Prepaid Credit Card
Though prepaid cards aren’t credit cards, they are essential to discuss. They function much like credit cards after you load money onto them. They can assist you with budgeting and debt relief, but you need help establishing credit. American Express’s Bluebird is well-known for having no monthly fees and free online bill payment.
2. Store Credit Card
Although they are sometimes disregarded, store credit cards might be helpful for credit reconstruction. These cards may be used at particular merchants and are easier to qualify for. For instance, the Amazon Store Card and the Target RED Card are notable examples. Although they are only valid at specific establishments, they provide discounts and other helpful benefits.
3. Unsecured Cards for Bad Credit
Although unsecured credit cards don’t need a security deposit, they have drawbacks such as more fees and interest rates. They are an alternative if you cannot make a deposit, but they need cautious money management. Take the Credit One Bank Unsecured Visa for Rebuilding Credit, which has cash-back benefits. However, be aware of the high annual percentage rate and yearly charge.
4. Credit Cards That Are Secured
Secured credit cards are the easiest to obtain for people with poor credit. In contrast to unsecured credit cards, secure credit cards need a cash deposit that acts as collateral and usually determines your credit limit. Consider it a building block for yourself and a safety net for the lender.
5. Student Credit Cards: Not Exclusively for Students
Student credit cards are ideal for young adults, especially students with little to no credit history. Despite typically having lower credit limits, these cards serve as an effective means to build credit. A notable example is Capital One’s Journey Student Rewards, which has no annual fee and provides 1% cash back on purchases. Similarly, secured cards like the Discover it Secured Credit Card stand out by offering cash-back rewards without an annual fee, illustrating their appeal beyond just students.
6. Gas Station Credit Cards
Gas station credit cards often have more lenient approval criteria, making them a viable option for improving their credit score. While primarily usable at specific gas stations, these cards frequently offer rewards like discounts on fuel purchases. For example, the Shell Fuel Rewards Card provides savings per gallon and has no annual fee, making it an excellent choice for regular commuters.
7. Credit Builder Loans with Card Access
Some financial institutions offer a hybrid product that combines a credit builder loan with a credit card. These products allow you to make payments into a loan that, once paid off, grants you access to a line of credit. This unique approach not only helps build credit but also teaches financial discipline. The Self Visa Credit Card is a noteworthy example, requiring no hard credit check for application.
8. Department Store Cards
Similar to store credit cards but more focused on department stores, these cards are more accessible to approve and can help with credit building. They typically offer special financing deals and discounts on store merchandise. The Macy’s Credit Card is a popular choice, offering exclusive savings and rewards for in-store and online purchases.
9. Catalog Credit Cards
Catalog credit cards, also known as merchandise credit cards, are issued by direct mail or online merchants. They are designed for use at specific catalogs or online stores, offering a line of credit for purchasing their goods. These cards, like the Fingerhut Credit Account, often have high approval rates for individuals with bad credit and can help in establishing a payment history.
10. Credit Union Credit Cards
Credit unions are nonprofit organizations that may offer more favorable terms on credit products for their members, including those with less-than-perfect credit. Credit union credit cards often come with lower interest rates and fees. The Navy Federal Credit Union rewards Secured Card is an excellent example, requiring a minimal deposit and offering reward points for purchases.
11. Subprime Credit Cards
Subprime credit cards are tailored for individuals with poor credit histories. They typically come with higher interest rates and fees to offset the risk to lenders. Despite the costs, they can be a tool for rebuilding credit if used responsibly. The Indigo Platinum Mastercard is a well-known option, featuring quick pre-qualification and no security deposit requirement.
12. Digital Bank Credit Cards
Emerging digital banks offer credit cards designed for individuals with bad credit, leveraging technology to assess creditworthiness differently. These cards often feature innovative rewards programs and financial management tools to help users improve their credit scores. The Chime Credit Builder Visa Credit Card is an example. It has no annual fee or interest, and it allows you to build credit over time by reporting payments to major credit bureaus.
