When looking for a new credit card, bad credit holders are often faced with less than ideal terms. They often have higher APRs and fees, and fewer benefits. However, there are several options available. Some cards offer solid rewards rates with low or no annual fees. Others are secured cards that require you to make a security deposit as collateral for a credit line.
Discover it Secured Card
The Discover it Secured card is one of the best options for people with bad credit. It has no annual fee and offers rewards. To get started, applicants simply put down a cash deposit on the card. This will give them a credit line equal to the deposit, which they can then use to build a positive credit history. After seven months, if they maintain good payments, they can graduate to an unsecured credit line. Other features of the Discover it Secured card include automatic reviews and an upgrade option.
The Discover It Secured card offers a low annual fee, no foreign transaction fees, and no penalty APR. The card also offers 2% cash back at gas stations, and 1% cash back on all other purchases. As an added bonus, Discover matches all cash back you earn in the first year. You can redeem your cash back for gift cards or statement credits. The Discover Secured card also offers credit score updates every month, which lets you see how your score is improving.
Capital One Platinum Credit Card
If you’re looking for a credit card for people with bad credit, Capital One might be the right choice. Their credit cards come with credit-tracking tools like the Credit Score Tracker, and they report to all three major credit reporting agencies. Another plus is that you won’t be charged foreign transaction fees.
Capital One’s Platinum Credit Card is an unsecured card with no annual fee. It’s a great alternative to secured cards because you can get a higher credit line in as little as six months. However, the downsides of this card are its high APR and lack of rewards. The card is intended for people with fair to bad credit, and it may require a FICO credit score of at least 580, although you might be able to qualify with a lower score.
Discover it Unsecured Card
The Discover it Secured Credit Card is one of the best cards for people with bad credit. With no annual fee and 2% cash back on gas, this card is perfect for people who don’t have a history of making payments on time. This card is a great choice for people who want to get out of debt, but are afraid of making large purchases. It also reports your activity to the major credit bureaus, which can help you establish good credit and qualify for premium credit cards in the future. This card also comes with ongoing cash back rewards and a welcome bonus.
Other great benefits of the Discover it Secured Card for people with bad credit include a lucrative bonus program and rewards. You can earn 2% cash back at gas stations and 1% cash back on all other purchases. If you use your card for a full year, Discover will match the cash back rewards you earn. This means you can get up to $400 back in rewards.
Discover it Secured Visa Signature Card
The Discover it Secured Visa Signature Card for people have bad credit is a credit card for people who are looking to build their credit. The card requires a $200 security deposit and a credit limit of $2,500. It works best as a transitional card that builds credit and eventually leads to an unsecured card with higher rewards.
The Discover It Secured Credit Card has low credit score requirements, no annual fee, and reports to three major credit bureaus. However, it does have some drawbacks.