Low Credit Score? Discover Credit Card Options To Build Your Score And Help You Rank Better With The Credit Bureau, So You Can Buy The Things You Want!
How to Pick a Credit Card When Your Score Is Low
Some of the best credit cards for users with low credit scores feature a combination of attractive features. The credit bureau is responsible for assessing enrollees’ credit scores, and these numbers are extremely important. For example, candidates with low credit scores will encounter more difficulty applying for loans, renting homes or even obtaining new credit cards. By finding the best credit cards for bad credit, petitioners are able to slowly rebuild their scores over time.
Applicants have many choices when it comes to credit cards, such as unsecured and secured credit card options. The following sections will outline which credit card offers candidates with low credit scores should utilize, as well as the difference between a prepaid credit card and its more traditional variations. With this information, applicants will be able to more efficiently choose the best credit card to improve their credit.
What is a secured credit card?
Petitioners with less than perfect credit scores will need to consider raising their credit with a secured credit card. Regardless of their credit scores, most petitioners are able to receive these cards because of the deposits they are required to pay up front. In order to apply for a credit card of this style, agencies require candidates to submit cash deposits before they may receive their cards.
Secured Credit card offers generally appeal to candidates who have low credit scores. In many cases, some of the only requirements for receiving these tools include having bank accounts. Cards like the Capital One Secured Mastercard Credit Card, for example, give petitioners the opportunity to pay their security deposits at once or over an extended period of time. Furthermore, secured credit cards are usually cheaper to maintain than unsecured ones. After being approved for a secured credit card, you may start rebuilding your credit.
What APRs do the best credit cards have?
Before petitioners apply for credit card, they must be sure to check what their annual percentage rate (APR) would be with that particular card. This is also referred to as interest. Some of the best credit cards for bad credit have lower APRs. A low APR is beneficial to candidates because they will not need to pay extra money on unpaid balances left on the cards at the end of each month. However, candidates with low credits scores can expect to receive credit cards with APRs that are higher than the national average. As a result, even the best credit card offers require candidates with less than good credit to pay higher APRs than enrollees with good credit.
When petitioners apply for credit card, they must remember that the average APR for a credit card is between 12 and 13 percent. However, cards such as the Indigo Platinum Mastercard, which is one of the best credit cards for poor credit, has an APR of 23.9 percent. Some of the best credit card offers for petitioners with bad credit feature APRs that range within this average. Therefore, applicants must be sure to pay off their bills each cycle so they can use these cards to rebuild their credit.
What annual fees do credit cards for bad credit have?
Most of the best credit cards require petitioners to pay an annual fee in order to use their cards. This is true regardless of whether they are specifically credit cards for bad credit or not. Independent of the cards they choose, most users can expect to pay between $25 and $100 per year for a card. However, unlike it is the case with APRs, there is no evidence that credit cards for poor credit require enrollees to pay a greater annual fee.
Furthermore, some of the most appealing credit card offers for enrollees with less than perfect credit do not require an annual fee at all. For example, the Discover It Secured requires no annual fees. However, it does feature a higher APR than average. On the other hand, the OpenSky Secured Visa comes with a $35 annual fee and a lower APR. When candidates apply for a credit card, they must take into account their spending habits and how they plan on using their cards. In general, having less than an ideal credit score does not require enrollees to pay high annual fees. Conversely, enrollees who do not pay their bills on time each month may have to pay high APRs.