Credit cards for people with bad credit scores, i.e., the scores between 300 and 639, help them rebuild their credit. Today, many companies cards for people with bad credit at a fee as low as $0. Many even offer rewards equivalent to 1% cashback and more on purchases. Herein, we will look at three of the best cards that will be good for people with bad credit.
- Discover it® Secured
It is one of the best credit cards for people with bad credit and is a great option to help you earn excellent cashback rewards. There is no annual fee applicable on the card, and you will get an introductory offer on the balance transfers if you are paying a high-interest rate on any other card. Of course, the interest rate is not the lowest; however, the long-term interest rate is a lot more customer-friendly compared to other credit cards suitable for people on the lower end of the credit score spectrum. One of the best features is that it will automatically review the account you hold with them after eight months of good use. If you are eligible, you might even be upgraded to their unsecured card.
- Capital One® Secured Credit Cards
For people who have a damaged score which is not necessarily destroyed, the Capital One® Secured Mastercard® is great for bettering your credit score. In this secured card, you will have to make a deposit equivalent to the credit line. Some may not like it, but the full deposit has to be made upfront. However, the good thing about this card is that you can avail a credit limit of up to $200. You will need to make a deposit of $49, $99, or $200. It is also possible for you to make deposits in installments. Owning and responsibly using this card for six months makes you eligible for a higher credit limit. You also don’t need to make an extra deposit for this increased limit. Note that this card will not be granted to people who have a severely damaged credit card. So, getting a card approval is hard for those with a bankruptcy label on their credit report. Another problem that card applicants might face is that to own this card, you need to have a savings or checking account mandatorily.
- Wells Fargo Business Secured Credit Card
Next in line as the best pick for business needs is the Wells Fargo Business Secured Credit Card. It is a perfect business card for people who have a low credit score as it holds a unique spot in the market, thereby allowing small business owners to build both business and personal credit. With the card, you have the flexibility to earn good cashback and reward points. It can give small-scale businessmen some flexible working capital.