Having a low credit score can be a hindrance when it comes to applying for credit cards. Fortunately, there are credit cards specifically designed for those with low credit scores. These cards can help you rebuild your credit while still enjoying the benefits of having a credit card.
In this resource guide, we’ve put together a list of some of the best personal credit cards for those with low credit scores:
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a great option for those with low credit scores. This card has no annual fee, no foreign transaction fees, and no late fees. It also offers up to 1.5% cash back on purchases, with the potential to earn more cash back over time as you make on-time payments.
The Petal® 2 card also offers a credit limit of up to $10,000, which can help you improve your credit utilization ratio.
Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card is another great option for those with low credit scores. This card offers 1.5% cash back on all purchases, with no limit on how much cash back you can earn. It also has no annual fee for the first year, and a $39 annual fee after that.
The Capital One QuicksilverOne card also offers access to a higher credit line after you make your first five monthly payments on time.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a secured credit card that can help you build or rebuild your credit. This card requires a security deposit of at least $200, which will serve as your credit limit. The Discover it® Secured card also offers 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants each quarter, and 1% cash back on all other purchases.
It has no annual fee, and Discover will review your account after eight months to see if you’re eligible for an upgrade to an unsecured credit card.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is another secured credit card that can help you build or rebuild your credit. This card requires a security deposit of at least $200, which will serve as your credit limit. The OpenSky® Secured Visa® card also has no credit check requirement, making it a good option for those with low credit scores.
It has a $35 annual fee, but it also reports to all three major credit bureaus, which can help you improve your credit score over time.
How to Improve Your Credit Score
While having a credit card specifically designed for those with low credit scores can be helpful, it’s also important to take steps to improve your credit score over time. Here are some tips to help you improve your credit score:
- Pay your bills on time: Payment history is the most important factor in your credit score. Make sure to pay all of your bills on time, including credit card bills, utility bills, and rent or mortgage payments.
- Keep your credit utilization low: Your credit utilization ratio is the amount of credit you’re using compared to your credit limit. Aim to keep your credit utilization below 30%.
- Monitor your credit report: Check your credit report regularly to make sure there are no errors or fraudulent activity. You’re entitled to one free credit report from each of the three major credit bureaus every year.
- Don’t apply for too much credit at once: Applying for too much credit at once can lower your credit score. Only apply for credit when you need it.
- Consider a credit builder loan: A credit builder loan is a type of loan designed to help you build credit. These loans typically require you to make regular payments, which are reported to the credit bureaus.
In conclusion, having a low credit score doesn’t mean you can’t get a credit card. There are credit cards specifically designed for those with low credit scores that can help you rebuild your credit over time.
By taking steps to improve your credit score, you can also increase your chances of being approved for other types of credit in the future.