Unlike the credit cards you can get with a good score, these are pretty simple cards. Therefore, using them will build your credit and show that you are financially responsible to later access other types of capital.
types of credit cards
On the other hand, you should know that there are secured and unsecured cards for bad credit.
The difference is that secured credit cards require a security deposit that protects the card issuer in case you don’t pay your debts. Generally, this security deposit works as your credit limit. For this reason, it is easier to obtain a secured credit card.
On the other hand, unsecured credit cards for bad credit do not require a deposit, but generally have high-interest rates and low credit limits. The limit of the line of credit of these credit cards will depend a lot on the financial institution or bank.
Top 10 Easy Approval Credit Cards
After researching the top requirements, required deposits, fees, APR, and other features, we’ve put together this list of the 10 best credit cards for those with bad credit. Take note!
- Credit One Bank Visa Credit Card
- Discover it Secured
- Capital One Secured MasterCard
- Indigo Platinum Mastercard
- DCU Visa Platinum Secured Credit Card
- Total Visa
- OpenSky Secured Visa Credit Card
- Green Dot Platinum Visa Credit Card
- Credit Builder Secured Visa Credit Card
- First Progress Secured Mastercard
Keep reading to know the terms and characteristics of each of them.
Credit One Bank Visa
Credit One Bank Visa is an excellent option that will help people with bad credit. If you were wondering which is the best credit card in the USA, the Credit One Bank Visa is one of them.
It has a rewards program that allows you to receive a 1% cashback benefit on purchases such as groceries and gasoline, and services such as internet, mobile phone, and cable television. Also, one of the biggest advantages is that you can choose your payment due date.
Characteristics of the Credit One Bank Visa
Ideal for: building credit
Minimum credit score required to qualify: 300
Annual interest rate: 24-26.24% (variable)
Annual fee: $0-$75 for the first year, $0-$99 annually thereafter.
Discover it Secured
Discover it Secured is one of the best low score credit cards if you want to get cashback.
With its rewards program, Discover it Secured allows you to earn 2% cashback capped at $1,000 per quarter when you make purchases at restaurants and gas stations, plus 1% on all other purchases. Just keep in mind that you need to leave a $200 refundable deposit.
Features of Discover it Secured
Best for: getting cashback
Minimum credit score required to qualify: 350
Regular annual interest rate: 22.99%
Annual Fee: $0
Capital One Secured MasterCard
Capital One Secured Mastercard is one of the best credit cards without a credit history since it has no annual fees or hidden costs. In addition, it is possible to obtain access to a higher line of credit if you make your payments on time for five months.
However, you must leave a refundable deposit of $49, $99, or $200 to get a credit limit of $200.
Characteristics of the Capital One Secured Mastercard
Best for: Rebuilding your credit with minimal upfront costs
Minimum credit score required to qualify: 350
Annual interest rate: 26.99%
Annual Fee: $0
Indigo Platinum Mastercard
Indigo Platinum Mastercard is one of the best credit cards for people with bad credit or those who have filed for bankruptcy. Indigo Platinum Mastercard offers a simple pre-qualification process that does not affect your credit score.
There are more advantages: foreign transaction fee of only 1% per purchase, and other advantages in travel. For example, if you rent a car using this card, you’ll get coverage against theft and physical damage.
Characteristics of the Indigo Platinum Mastercard
The idea for: Anyone who has filed for bankruptcy
Minimum credit score required to qualify: 350
Annual interest rate: 24.99%
Annual fee: $75 the first year, $99 thereafter
DCU Visa Platinum Secured
DCU Visa Platinum Secured is a great credit card for people with bad credit looking for an affordable solution.
The DCU Visa Platinum Secured Credit Card has no annual fees, has a low-interest rate, and is flexible in the amount of credit it offers you, meaning you can use just about as much credit as you want.
In addition, there are benefits when renting vehicles, taking trips, and when you use them to pay for your insurance. But unfortunately, it does not offer rewards.
Characteristics of the DCU Visa Platinum Secured
Ideal for its low interest and because there are no fees
Minimum credit score required to qualify: 300
Annual interest rate: 11.50%
Annual Fee: $0
Total Visa Credit Card
The Total Visa Credit Card is about the best credit cards to rebuild bad credit.
The bank will report your payments to the three major credit bureaus. However, the Total Visa Credit Card requires a program fee, an annual fee, a monthly service fee, and has an initial credit limit of just $300.
Characteristics of the Total Visa Credit Card
Best for: Those who need to be disciplined about their credit
Minimum credit score required to qualify: 300
Annual interest rate: 34.99%
Annual fee: $75 the first year, $48 thereafter
OpenSky Secured Visa
OpenSky Secured Visa is a convenient option for everyone who wants to avoid going through a credit history check when applying for a card.
Plus, you don’t need to have a bank account to qualify, and you’ll be able to build your credit quickly since the issuer reports to all three major credit bureaus. But on the other hand, the OpenSky Secured Visa credit card has an annual fee and requires a minimum $200 deposit.
Features of the OpenSky Secured Visa
Ideal for: no need to check your credit.
Minimum credit score required to qualify: 300
Annual interest rate: 17.39%
Annual fee: $35
Green Dot Platinum Card
Green Dot Platinum Card is one of the best credit cards for bad credit, especially if you’ve had trouble getting approved with other cards.
The Green Dot Platinum Visa Credit Card is a credit card based on your initial deposit. That means your credit limit is equal to the amount of your deposit.
If you pay on time and use it responsibly, you can see your credit score go up. And, since it doesn’t check credit status, it doesn’t affect your credit when you apply.
Characteristics of the Green Dot Platinum Card
Best for: The credit discipline you gain
No minimum credit score is required to qualify
Annual interest rate: 19.99%
Annual fee: $39
Credit Builder Secured Visa
Although the Credit Builder Secured Visa credit card does not offer rewards and has a high annual interest rate, it has the advantage of having no annual fee and allows you to set your credit limit. between $300 and $3,000 based on the amount, you deposit in your Credit Builder savings account.
In addition, Armed Forces Bank will help you build your credit history by reporting your financial performance to the three major credit bureaus.
Features of the Credit Builder Secured Visa
Ideal for: having a flexible credit limit
Minimum credit score required to qualify: 300
Annual interest rate: 25.99%
Annual Fee: $0
First Progress Secured Mastercard
The last option when it comes to easy credit cards is the secured First Progress Secured Mastercard. , which offers three different products.
No minimum credit score or history is required to get approved. Also, when you use this credit card, it will be reported to the three main credit bureaus. The minimum deposit required is $200.
How does a credit card work?
Before explaining how it works, you should know what a credit card is.
A credit card is a plastic card, granted by a financial entity for an established amount that acts as a short-term loan. You can use these plastics to buy, pay and withdraw cash.
In this way, the cards work physically to allow you to pay in various businesses. For example, you go to your favorite clothing store, choose what you want, and pay with it.
When you use your credit card, the merchant will run it through a payment terminal to obtain all the card information to authorize or decline the transaction.
Learn about the benefits of having a credit card:
One of the biggest advantages of the cards is that they will help you improve your credit score. It will also bring you other benefits such as:
- Save interest (depending on how you use it, for example with online purchases)
- Obtain benefits by using it as points for each purchase that you later redeem, discounts, etc.
- Credits without interest.
How to apply for a credit card
To apply for a credit card you must know the requirements requested by the issuer.
All banks or financial institutions have unique requirements, but here are the general ones:
- Have an SSN (although there are institutions that accept ITIN)
- Have an EIN
- Prove that you have enough income
- Give a security deposit (the minimum amount will depend on the bank, the maximum how much you want your limit to be)
- Your credit score (some credit cards will ask you to have a certain score, even if it is low, to be approved)
Tips to improve your credit to get a card with easy approval
Our priority is to help companies like yours improve their financial performance so that you can access better capital opportunities. To this end, we have numerous resources to help you rebuild or improve your credit.
You have already discovered which are the best credit cards for people without credit; now we invite you to learn how to improve your credit score to access better financing opportunities:
- Always pay all your bills on time
- Make sure your landlord reports your rent to the credit bureaus
- Review your report with the major credit bureaus and make sure there are no errors
- Do not exceed 30% of your credit line
- Do not make too many credit applications, better investigate well before applying to only request a single financial product
- If you have already paid your line of credit in full, do not close it, keep it open and unused
