Recent studies show that over half of Americans have been rejected for an auto loan, a home mortgage, or a credit card due to bad credit.
Secured credit cards are the best for those with no credit or bad credit as they often require no credit check or will approve those with credit scores as low as 300. Why? You’re securing the card with a deposit, which is something unsecured (i.e. normal) credit cards don’t make you do.
So, while you’ll have to front a bit of cash to be eligible for this type of credit card, it’s a great way to build your credit over time until you’re eligible for another credit card with a higher credit limit. Looking to improve your credit score? Here are the best cards for bad credit/no credit that can help you do.
Best Credit Cards for Bad Credit 2020
1. Discover It Secured
The Discover It Secured card is one of the best credit cards for bad credit due to its rewards and other perks. It’s a secured card like any other secured card, meaning that you’ll have to provide a minimum deposit of $200 to open the account. And, that $200 will be your maximum credit limit for the time being.
However, there is no annual fee for the card, making it one of the best credit cards for people with bad credit who also don’t have a lot to spend on fees. And, you can receive 2% cashback at gas stations and restaurants with 1% unlimited cashback on all other purchases. But, that’s not all that makes this card great. They’ll automatically review your account after a period of time to see if you’re eligible to upgrade to an unsecured card.
2. Capital One Secured Mastercard
The Capital One Secured Mastercard requires a security deposit in the same way that all other secured credit cards do. However, the difference is that with most secured credit cards, what you pay in your security deposit is your credit limit. With Capital One, though, you can get up to a 200 credit line with a deposit of just $49 or $99 depending on your credit score and financial history.
After five on-time payments, they’ll review your account to see if you’re eligible for a higher credit line without making an additional deposit. So, this is by far one of the best secured credit cards for those who can’t afford to pay a high deposit but need to improve their credit score.
3. OpenSky Secured Visa
For immigrants with no bank account or students with no bank account, the OpenSky Secured Visa is the best credit card for you to help you begin to build credit. It’s one of the only cards that doesn’t require a credit check at all. And, you’re able to fund the deposit via money order or Western Union payment. So, you don’t need a bank account either.
The only downfall to this credit card, however, is that it does come with an annual fee of $35. If you have been denied for all other secured credit cards, this might be your only option as you build or rebuild your credit until you’re able to move on to another secured card without an annual fee or to an unsecured credit card.
4. Credit One Bank Visa
If you need access to fast cash, try looking into the Credit One Bank Visa credit card. Similar to the Capital One Secured Mastercard, this credit card allows you to receive up to $300 in credit by paying a fee of just $95. So, essentially, you’re able to access $205 of cash even if you have bad/no credit.
Interest rates for this card are a bit higher than the others on this list, but you can get 1% cashback in rewards, which is something that’s not very standard amongst secured credit cards. Unlike, the Discover It Secured card, however, Credit One isn’t as generous with their upgrades; it’s pretty difficult to increase your credit limit.
5. BankAmericard Secured
With $0 in fees and no credit history needed to secure the credit card, the BankAmericard Secured credit card is a great option for students or those with no credit history at all. It works for people with bad or no credit as well. In fact, when you’re a cardholder you gain access to educational tools and resources regarding how to use credit wisely and how to budget.
On top of that, you’ll be allowed to use their mobile banking app to access updated reports regarding your credit score and everything that is currently affecting it. The best part? They’ll perform account reviews and, according to your usage and payment history, they might give you your deposit back early.
Other Banking Options: Earn Cheese
If you’re not eligible for a secured credit card just yet or are only looking into a credit card as a way to help you manage your finances and earn a bit of cashback, there are other ways to do so.
The Cheese Debit Card is one of the most popular solutions for non-traditional banking. It allows you to enjoy all of the perks of an FDIC-insured account with zero fees and monthly charges.
Ready to enjoy lots of savings perks and cashback opportunities? Sign up today to unlock financial opportunities.
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