If you have a bad credit score, it seems difficult to get a good credit card, but it is possible. Getting a credit card is definitely not easy, especially for those who have a bad credit score. The chances of getting approved may seem impossible, but thanks to some companies who are aware of this difficulty, it is possible. While the choices are limited, you can still apply for a credit card without your poor credit history getting in the way.
Credit scores are determined using tools and models like FICO or Fair Isaac or Vantage Score Model. FICO is widely used by banks and lenders in measuring the creditworthiness of loan or credit card applicants. A FICO score of 599 or below is considered low, therefore, people with these scores usually have a hard time applying for financial products. If you’re trying to get a credit card, but are hesitant because of your credit score, we've got some answers.
Our editors have searched far and wide to find cards for people that don't measure up to traditional standards. And you shouldn't worry, there is hope, there are opportunities for you. Our team has compiled a list of cards that can help you. Over time, these cards can assist you in rebuilding your credit and improving your FICO score. Make sure to read everything below before you decide whether or not one of those cards are for you.
Why It Matters To Have A Good Credit Score?
Credit scores are part of your individual financial picture, meaning, this is a determining factor that helps lenders assess your risk as a borrower. If your score is high, you are less likely to be viewed as a risk to banks and lenders; meanwhile, if your score is weak, lenders may question your ability to pay what you borrow.
In most cases, individuals with higher credit scores enjoy lower interest rates for car loans, mortgages and credit cards. If you’ve been approved of loans and credit cards, the interest rate is relatively higher compared to those with a high score.
In this sense, you can see how credit rating affects your finances greatly, especially in terms of getting approved of financial products and services. In addition to these, landlords also use your credit to ensure you have the capacity to pay.
What are my Best Credit Card Options?
Here are some of the credit cards you can check out if you have a low credit rating:
Capital One Secured Mastercard
This credit card is an example of a card with credit building features to help you rebuild your score.
The only downside is, a security deposit is required and will serve as a factor for the initial credit line.
For instance, if you put in $200 as a security deposit, you can get an initial credit line of $200. The higher the deposit money, the higher the credit line you can enjoy.
Another good reason to apply for this credit card is the no annual fee and no charge for balance transfers. For the interest rate, you are looking at 26.74% variable APR. Late payment incurs a fee of $39 and $10 for every cash advance. Contact 1-800-695-5500 to apply for a credit card or visit Capital One’s main office at 1680 Capital One Drive, McLean, VA, United States.
Surge Mastercard
Another credit card designed for people with a poor credit rating is the Surge Mastercard. It guarantees fast application results in seconds, with an initial credit line of $500.
The annual percentage rate for purchases is 29.9%. Other fees include an annual fee of $125 for the first year, $120 monthly maintenance, and $40 for the late payment. To apply, you can contact Surge at 1-866-449-4514.
Credit One Platinum Visa
Are you looking for a credit card that lets you rebuild your credit score and at the same time, provides a myriad of benefits? The Credit One Platinum Visa is one amazing card that has cash back rewards and free online assessment to Experian credit score.
The APR for purchases starts at 19.49% to 25.49% variable. For the first year of using the card, you are billed only a $95 annual fee. For a cash advance, cardholders are charged $10 or 5% of each cash advance. To apply, you may reach Credit One Bank at 1-800-752-5493. The bank’s main office is located at 6801 S Cimarron Rd., Las Vegas, Nevada, United States.
Having a poor credit score isn’t the end of the world. Apply for a credit card with a credit rebuilding feature to improve your rating over time. What’s important is staying up-to-date with the payments you need to settle to maintain a good rating.
Note: There are risks involved when applying for and using a credit card. Consult the bank’s terms and conditions page for more information.
