Bad Credit Card Application Offers – Credit Cards for Bad Credit or No Credit
If your credit score isn’t something you want to brag about, you’re not alone. Experian, one of the three major credit bureaus in the United States, reports that around 30% of Americans have poor credit. A poor credit score may have an adverse impact on your ability to find a home, land a new job, buy a car, or start a business. A poor credit score or no credit is a significant problem. However, it doesn’t have to be permanent. There are multiple ways to improve bad credit quickly. Secured credit cards are one way to fix credit fast. Bad credit card application offers help individuals to improve their credit scores.
If your low credit score could prevent you from getting a loan to finance a home, car, or business, it may seem unlikely that it is high enough to apply for a credit card. The opposite is, in fact, true. Some banks and credit card companies have cards designed specifically for people with poor credit or no established credit history. These credit card offers allow people with bad or credit or no credit to build a new positive credit history quickly.
Cards for Bad or No Credit Help People Build and Repair Credit fast
It’s important to understand that you can’t build or rebuild your credit only by applying for a credit card. Make small purchases with your card each month, then pay off the full balance by the due date every month. Be sure to keep your spending low compared to the credit limit on your account. Using less than 20% of your available credit and making on-time payments with all of your creditors will help your credit score improve. The process of building or establishing good credit will take time. You’ll start to notice improvements within the first few months.
Some people worry that applying for a credit card will further hurt their credit score. Getting pre-qualified for a credit card does not have a significant adverse effect on your credit history. A pre-qualification will result in a “soft inquiry” on your credit report. This will have a temporary and usually unnoticeable impact on your credit score.
As previously mentioned, multiple credit cards can be used to build or rebuild your credit history. You’ll want to evaluate which option is best for you. To do so, you’ll need to understand the differences in secured credit cards, unsecured credit cards, and prepaid debit cards.
Prepaid Debit Cards
Let’s look at the prepaid debit card first. They function in much the same way as a store gift card would. You buy the prepaid debit card, then ask the cashier to load a specified amount of money into the account. Prepaid debit cards give users the ability to make non-cash purchases. There is no approval process based on your credit score. However, prepaid debit cards don’t have any effect on your credit history. A prepaid debit card does not extend you a line of credit and does not influence your credit history. If you’re looking to build credit fast, a prepaid debit card is not the best option for you.
Secured Credit Cards
Like prepaid debit cards, secured credit cards require that you pay money at the time you get the card. The credit card company asks you to put up a security deposit as collateral since they have no proof that you know how to manage credit responsibly. In many cases, your initial credit limit will match your deposit. Unlike a prepaid debit card, a secured credit card is a line of credit. This means that by using your card, making on-time payments, and keeping your debt-to-credit ratio low, you can improve your credit through the use of a secured credit card. Most card companies will refund your security deposit after a few months of responsible use. Secured credit cards are well suited for someone looking for their first credit card.
CreditFast.com Recommended Secured Credit Cards With Lowest Fees
Capital One® Secured MasterCard® – $50 to $200 secured deposit no annual fee
The Discover it® Secured Credit Card – $200 secured deposit no annual fee
Unsecured Credit Cards
Unlike prepaid debit cards and secured credit cards, you can apply for an unsecured credit card for bad credit without paying anything up-front. Because unsecured credit cards don’t require a security deposit, their credit requirements are higher than those for secured cards. While you don’t have to pay a security deposit, it’s important to know that unsecured cards may have higher interest rates than secured cards. Unsecured credit cards are also more likely than secured cards to carry an annual fee.
No Credit and Bad Credit Card Application Offers
The following bad credit card application offers are designed primarily to help people build or rebuild their credit scores. If you do not have bad credit, you should look for another credit card that will reward your previous credit history with lower interest rates and better rewards. If you’re not there yet, compare these credit card for bad credit offers to see which ones can help you improve your score.
Each credit card offer for bad credit below contains our editor’s rating and objective opinion. While most of the credit card offers shown below are from our advertising partners, CreditFast has reviewed the features and benefits of each of the low credit requirement credit cards discussed below and ranked them in the order of our editor’s recommendation.