Bad credit/credit building cards are much similar to other credit cards. However, unlike other cards, individuals with missed multiple payments or have low credit score can qualify for them. You can rebuild your credit score if you have a poor or limited credit history by using a credit building credit card.
By creating a positive financial repayment history on the new credit card, you will improve your credit score and have a better chance of getting approved for bigger loans or products on credit.
4 Reasons Why You Should Consider Getting A Credit Card To Build Your Credit History
- Your Name Is Not On The Electoral Register
Your name and address are linked together therefore when you sign up for the electoral register; you will improve your degree of trustworthiness among lenders.
- Late Payments Of Your Bills
Having several missed or late payments will always reflect on your credit card no matter if it is your mobile phone bill or a credit card payment. The lenders usually check your credit report before they lend you any money. Therefore, if you have missed your payments on several occasions, you might want to consider getting a credit building credit card.
- You Have No Credit History
Your credit score is likely to be very low if you have never made any utility payment, loan or have had a credit card. Lenders will always check your credit history to determine if you will be eligible for a loan.
- Bankruptcy or County Court Judgment
Your chances of qualifying for credit will significantly reduce if you had had an encounter with the CCJs or have been declared bankrupt.
Getting a credit building credit card can help you to qualify for credit even when it would be seemingly difficult under normal circumstances. If you have had any credit missteps in the past, you can either use a secured or unsecured credit building card to get back on your feet. In this article,, we will be looking at some of the best secured and best-unsecured credit building credit cards in the market today.
Best Unsecured Credit Building Credit Cards
- Capital One Platinum Credit Card
This is an unsecured credit card that aims at improving credit history for the individuals who have a decent credit history. This credit builder card has no annual fees. Unlike Credit One Bank Platinum Visa which offers cash back rewards, Capital One Platinum Credit Card can be used for long-term savings because it has $0 annual fee.
This card has no foreign transaction fee. Therefore, you can use it on your vacation. However, ensure your payments are made on time to avoid carrying off balance.
- Indigo Platinum MasterCard
This card is best for individuals who have been declared bankrupt in the past. Indigo Platinum MasterCard does not disqualify individuals who have a bad credit history. With this card, you can easily pre-qualify for credit without the lending firm digging into your credit reports. Based on your credit history, the annual fee may range from $75 to $99. The APR of this credit card is 23.90 percent. You can use this credit card to build your credit profile by maintaining a positive payment history.
- Credit One Bank Platinum Visa With Cash Rewards and Cash Back
This card is best for individuals who think an unimpressive credit history should not hinder them from getting rewards for shopping. You will get 1% cash back for making purchases that are eligible. You will also get a credit line of $300, and the future credit line will increase based on your credit performance.
The annual fee ranges from $0 to $99. Creditworthiness will determine your cash back rewards and the fee you will be paying. The card also has a high purchase APR of between 19.74 percent and 25. 74 percent.
To get the most out of this card, use it for your normal purchases and keep an eye on your balance. Pay off all your credit on time to avoid paying extra interest, and by doing so, you will get the most out of the rewards.
Best Secured Credit Building Credit Cards
- Capital One Secured Master card
This card is recommended to anyone with limited or bad credit. It has a flexible threshold, and the security deposits are $49, $99 or $200 depending on your creditworthiness, unlike most credit cards that require a minimum of $200 as security. You will choose your billing due date. Therefore, it is much easier to make payments on time.
After signing up for this credit card, you will access rewards such as roadside assistance, rental car insurance, travel accident insurance and price protection that repays you the price difference in case an eligible item you had paid for goes on sale. You will get a higher credit limit if you make the first five consecutive payments on time.
Capital One Platinum Credit Card and Secured Master card are in the same look but different types.
- OpenSky Secured Visa Credit Card
This card can help you in building your credit history if you have a poor, fair, or no credit history. You do not require a credit check when applying. Your credit limit will depend solely on the amount you will
deposit; for you to have a higher limit, you should deposit more.
There are no rewards offered for this card and the security deposit ranges from between $200 and $3,000. It has a purchase APR variability of 19.14%. All cardholders are protected against fraud, and in case there is any unusual activity on your account, you will be contacted for verification.
- Discover It Secured
With this card, you can get benefits that are similar to those offered by unsecured cards, for instance, earning rewards. You will get cash back on your every purchase, and it will help you in building your credit history with the help of responsible use.
The credit security starts with a minimum of $200. Your account start to be viewed at eight months to see if you can transition to the unsecured line of credit.
Additionally, with this credit card, you will also earn two percent cash back at restaurants or gas stations to a maximum amount of $1,000 in combined purchases each quarter and 1% cash back on all other purchases.