Many people have bad credit scores through no fault of their own. For example, you may have had a string of bad luck, such as a layoff, the loss of a loved one or a serious illness. These are things that can set you back financially regardless of how well you manage your money.
When you have bad credit scores, it can seem like most doors are closed to you. You may be looking for a great way to re-establish a good credit history while also getting the credit you need. The good news is that there are a few credit cards that issue quick approvals for individuals with bad credit scores, and you can use your new credit card to build up a better credit rating slowly over time. Compare these top options for 2017 to find the one that is most appealing to you.
Credit One Bank Unsecured Platinum Visa
Many credit cards for bad credit borrowers require you to place a security deposit with the credit card company. This security deposit may be several hundred dollars in most cases, and some credit card companies hold your money indefinitely. The Credit One Bank card, however, is an unsecured card that does not require an initial deposit from you. The card gives you one percent cashback on most purchases. It also has a pre-qualification option so that you can see if you may qualify for the account before your credit score is pulled. The credit card company gives you access to your credit scores regularly, and it also sends you text or email messages to remind you about pending payments so that you always make your payments in a timely manner.
Indigo Platinum Mastercard
This is another unsecured credit card option to consider applying for in 2017, and it also has a pre-qualification process that you can go through before your credit report is pulled to determine how likely you are to be approved for a new account. While this credit card does not have a rewards program tied to it, most borrowers with bad credit scores are approved. Even those who have a bankruptcy on their credit report may qualify for this credit card. This is a great credit card option for those who have seriously damaged credit and who want a no-frills credit card without hassle.
Discover It Credit Card
If you are agreeable to a secured credit card, the Discover It credit card is a wonderful plan to think about. You must place at least a $200 security deposit with the company to open the account. The amount you use as a security deposit will become your credit limit. If you make timely payments and have improved your credit rating after seven months, you may qualify to have most or all of this deposit refunded to you. When that happens, the card will be converted into an unsecured credit card account. This credit card has a rewards program tied to it, and it also offers benefits such as a credit score monitoring tool and text messages alerts for bill payment reminders. Notably, there is not an annual fee. This means that if you pay the balance off in full each month, there is no cost associated with using this credit card.
USAA Secured Visa Credit Card
If you are a member of the armed forces or if you qualify for USAA membership in other ways, you may qualify for a USAA Secured Visa credit card. While you are required to submit a security deposit when opening this account, USAA will hold your funds in a two-year CD for you. This means that your security deposit will accrue interest and is, therefore, an investment. However, if you close your account within the first two years, you will be hit with an early withdrawal penalty for closing the CD account early. The minimum initial deposit is $250. If you plan to use the card for travel outside of the United States, there are no foreign transaction fees.
When you are trying to decide which credit card account to apply for, you should first think about your ability to place a security deposit with the company. If you do not have funds available for a security deposit, you can only consider unsecured credit card accounts. For all options, an account without an annual fee may be more affordable if you plan to pay the balance off in full each month. Interest rates are only a concern if you plan to carry a balance forward. In addition, look for special features, such as rewards programs, credit monitoring tools and more. If you are concerned about dings to your credit rating, a pre-qualification step is also preferred. With these features in mind, you can more easily determine which credit card to apply for today.