If you have bad credit and can’t get a credit card, you may settle into a life of paying for everything with cash. This is certainly one way to manage your finances, plus a cash-only attitude lowers the risk of debt. Unfortunately, you may run into problems if you encounter an emergency and don’t have enough cash in the bank. Credit cards are risky, but at the end of the day, they can be extremely useful in a financial crisis – as long as they’re used responsibly.
The fact that you’ve been turned down for credit cards in the past doesn’t mean you’re incapable of getting a card. A credit card not only functions as a financial backup, they can provide a way to start over and boost your rating. And if you’re thinking that you can achieve similar results with a prepaid credit card, understand that these cards are not the same as credit cards. Yes, prepaid cards are safer, but these cards don’t report to the credit bureaus and they don’t improve your credit score.
It’s only by means of a credit card that you can boost your credit rating. If you’re ready to improve your creditworthiness, here are five cards to get you started.
Capital One Secured MasterCard
This credit card is a top pick because there are no processing or application fees. Apply for this credit card and your issuing bank will report to all three major credit bureaus on a regular basis. What does this mean for you? Simply put, if you pay your bill every month and don’t exceed your limit, you will gradually improve your credit score. And since this credit card is a MasterCard, it is accepted at millions of locations. There’s a $29 annual fee.
First Premier Bank Credit Card
First Premier has a variety of credit cards designed for people with no credit or bad credit. The annual fee and APR varies by card, however, getting approved only requires a checking account and paying a processing fee, at which time you’ll gain access to a credit card with a limit of $300. This card is a good match whether you have fair or bad credit, and because the bank reports to the three major credit bureaus, you can rebuild your credit with on-time payments.
Credit One Bank Gas Rewards Credit Card
Maybe you want to rebuild your credit score and earn reward points. The Credit One Bank Gas Rewards card is the best of both worlds. Earn 1% cashback on all gas purchases, and if you pay your bill on time each month, the issuing bank may increase your credit limit after six months. To help manage your credit, take advantage of free online monthly credit score tracking. And if you sign up for due date alerts, you’ll never miss a payment. The annual fee is $75 the first year, then $99 every year thereafter.
Premier Forward MasterCard
With this credit card, you can get approved with no security deposit, providing you have an active checking account. Apply online and receive a response in less than 60 seconds. If eligible for an account, you will enjoy a $300 credit limit, with the possibility of future credit limit increases.
First Progress Platinum Select MasterCard Secured
This credit card might be an option if you have a low credit score or no credit history. The issuing bank reports to all three major credit bureaus on a monthly basis, and to get approved, you only need a security deposit between $300 and $2,000. Your security deposit is fully refundable, and if you decide to pay off your balance and cancel the card, the bank will issue a check for the full amount of your deposit. Enjoy a low regular APR of 14.99%, plus a low annual fee of just $39.
