Credit Cards Tailored for Individuals with Poor Credit
A good credit score is a significant part of any financial health check. However, if you find yourself with a less than stellar credit score, it may seem like an insurmountable barrier to accessing credit. Fortunately, there are credit card options designed specifically for people with bad credit. These cards can help rebuild your score, granting you access to better credit products in the future. This article will explore three such credit cards suitable for individuals with bad credit scores.
Secured Credit Cards
Secured credit cards are an excellent option for individuals with bad credit scores. Unlike typical credit cards, secured cards require a deposit that serves as your credit limit. This deposit acts as a safety net for the card issuer in case the cardholder defaults on payments. One example is the Discover it® Secured Credit Card, which offers a refundable deposit, reports to the three major credit bureaus, and offers cash back rewards on purchases. This card can help improve your credit score over time, provided you consistently make payments on time and maintain a low balance.
Unsecured Credit Cards for Bad Credit
Unsecured credit cards do not require a deposit like secured cards, making them more accessible for some people. However, they often come with higher interest rates and fees. The Credit One Bank® Unsecured Visa® for Rebuilding Credit is a popular option in this category. It offers 1% cash back on eligible purchases and reports to all three credit bureaus. It's important to note that while these cards can help improve your credit score, they must be used responsibly due to their high costs.
Store Credit Cards
Store credit cards, while typically having higher interest rates, often have more lenient credit requirements making them a viable option for those with bad credit. The Fingerhut Credit Account is a noteworthy option in this category. It's not a traditional credit card but a line of credit that can only be used to shop at Fingerhut and its partner brands. The Fingerhut Credit Account reports to all three major credit bureaus, which can help build your credit score over time when used responsibly.