In general, the process of applying for a credit card is not difficult you can either fill out an application online or call the bank you want a line of credit with, and they’d be pleased to assist you with the application process.
However, if you have bad credit or no credit, you may have difficulty meeting the approval criteria. Luckily, there are many credit cards designed to help you build or repair your credit history. Here’s a list of credit card options you should sign up for today because you’ll definitely be approved.
Unsecured Credit Options for People with Bad or No Credit
An unsecured credit card refers to a credit card that does not require a down payment. Because most banks consider bad credit to be better than no credit, this is a perfect option for those who are repairing their credit scores. However, it’s important to note that most of these cards come with high APR rates and possible annual fees.There may be a few that offer cash back and other rewards, but for the most part, they will start you off with a limited credit line when you sign up which will gradually increase as you establish a good payment history. Examples of unsecured credit cards you should apply for: Total Visa card, Milestone MasterCard, and Indigo MasterCard.
What is a Secured Credit?
Secured credit cards are credit cards that require that you put down a security deposit, usually one that is equal to your line of credit. These types of cards are perfect for those with no credit or with those who are rebuilding credit after a bankruptcy. While these cards may provide a limited credit line, they do report to all three credit bureaus and tend to have lower APR rates than that of unsecured card options.
Can I Qualify for Multiple Credit Cards?
Additionally, if you’re approved for a Capital One Secured MasterCard, it makes it easier to qualify for an unsecured Capital One MasterCard after you’ve established a positive credit history with their company which also makes this option ideal for those looking to repair their bad credit. Examples of secured credit cards you should apply for: Discover It secured credit card, Capital One Secured MasterCard, And OpenSky secured Visa.
Retail and Gas Cards for People with Bad or No Credit
It’s important to note that there are two types of retail in gas cards. The first are store cards that only work at the specified retail or gas station location, such as a Walmart or Texaco card. The second type is dual cards that work at either the specific retail or gas station location and as a regular credit card such as a Barnes & Noble MasterCard or BP Visa. For those with bad or no credit, it’s always best to apply for the first option to help build or improve your credit scores because even though they provide limited credit access, they do report to all three credit bureaus. And since most major brands offer limited access and dual cards, it’s easy to be approved for a Target MasterCard after you’ve built a positive payment history with a generic Target card.
Pre-qualified Credit Cards Explained
The most significant advantages of applying for a pre-qualified card are that they don’t pull your credit card history in order to determine your approval which makes them perfect for those with bad credit. Usually, the sign-up process is quite easy and only requires that you provide your name and at least four digits of your Social Security number. One potential drawback of these pre-qualified cards is that their APR rates are significantly varied because usually APR rates are based on your credit score.
Your Sign-up Process is Non-Existant
Be sure to review and possibly discuss these rates with the bank offering the pre-qualified card before signing up. Additionally, your credit line is usually limited to start out with, but will gradually increase as you build a credit history. Keep in mind that a pre-qualification sign up is not an application it’s merely checking to see that you meet certain criteria. Additionally, being pre-qualified does it mean that you won’t be turned down after they review your criteria. But since 80% of all pre-qualified offers are approved the odds are in your favor.
Other Credit Building Tips
Once you’ve been approved for a credit card, it’s important to use it properly in order to build or repair your credit. Here are some tips to help get your credit score in the very good or excellent range. Always pay your credit card on time because late payments can dramatically affect your credit score. Whenever possible pay your credit card balance off in full.This is especially important for those who have credit cards that carry high APR rates and limited credit access because many companies will lower your APR rate and extend your line of credit after you show a positive payment history. Carefully monitor your credit balance every month. If it all possible only carries a card balance that’s at or below 30% of your total credit limit. It is okay to apply to more than one of these credit card options at a time, just make sure that you’re able to stay on top of the payments for each card before you sign up.
Stick to Credit Cards in Your Credit Range
Additionally, having more than one credit card may be the best way to overcome the low or limited credit line ($200 to $1000) that most of these cards start off with. Those with no credit history should apply for student credit cards because they are geared toward those who have never had credit cards before. If you have bad or no credit, it’s best to steer clear of cash back or rewards cards unless they are listed explicitly as guaranteed approval cards. The reason for this is that these cards are usually difficult to qualify for and if you apply and fail to receive one of these cards it will further damage your credit score. It’s better for you to stick with cards that you know are within your reach. After you take the time to build or repair your credit with a guaranteed card, then you can go after cards with lower interest rates and more benefits. So don’t let no or bad credit keep you from the many advantages of having a credit card or the future financial benefits of having a positive credit score. When you sign up for one or more of these credit cards, you’ll be well on your way to establishing a positive and financially beneficial credit history.