Best credit cards for bad credit 2018 – credit card insider electricity in water pipes

Not sure if you’ll be approved for a particular credit card? You can check to see if you’re pre-qualified without harming your credit scores. This is a great way to shop around — you may find that you’re pre-approved for cards that you thought were out of your league!

Using a secured or lower-end credit card is not a bad thing. As long as you use your card and other credit accounts responsibly, your credit will improve and you’ll be able to qualify for cards with much better rewards. Selection Criteria: What Makes a Great Credit Card for Bad Credit?

By providing a security deposit to fund the credit limit, you reduce the risk for the credit card issuer. But this doesn’t mean you’re guaranteed to be approved for secured cards. You can still be denied if your credit is bad enough, for example, or if your income is below a certain amount.

In most cases your credit line will be equal to the amount of your security deposit. Credit limits tend to be no higher than $2,000 or $3,000, and, depending on the card, your maximum limit might be based on your creditworthiness. Sometimes you can make an additional deposit later on to increase the credit limit.

Secured cards usually don’t offer rewards of any kind, although there are a few that do. In most cases they have pretty high interest rates, and very few extra benefits. These cards usually report to the three major credit bureaus, just like most unsecured cards: Experian, Equifax, and TransUnion.

See our card picks below, and learn more about them in the Best Secured Credit Cards for Bad Credit. These stand out among other secured cards for their lack of fees, the rewards they offer, or their other valuable benefits. Best for Earning Rewards, No Annual Fee

The Journey Student Credit Card from Capital One ( Review) is a Visa designed for people with fair credit scores or limited credit histories, like other student credit cards. But unlike most other student cards, you don’t actually need to be a student to apply for this card.

You can get an automatic credit line increase with this card after making your first five monthly payments on time. And there’s the Capital One CreditWise tool, providing free access to your VantageScore 3.0 credit score, based on your TransUnion credit report. Tips for improving your credit scores are included. CreditWise also provides access to your actual TransUnion credit report, something that other issuers don’t do.

There are some other unsecured credit cards out there designed for people with bad credit, promising to accept almost anyone. But in exchange they often tend to have exorbitant fees, issues with their bill payment systems, and poor customer service.

We recommend trying the secured and unsecured cards mentioned above before looking into the following cards. Normally, we wouldn’t suggest using these cards unless they’re your last resort. There are still other options available, like store cards and credit builder loans.

If you need to use one of these cards, be sure to fully understand what you’ll be expected to pay. They typically have high annual fees, along with monthly fees. Pay your bills early, because sometimes payments can take longer than you’d expect and you may get late fees. Avoid these cards if possible, but if you end up using one do your best to stay safe and protect your credit.

Store cards are generally easier to get than regular credit cards, with lower credit requirements. But they also usually have higher interest rates, and may have some different rules about how and where you can use them. Your credit line will usually be smaller than what you get with other reward cards.

If you shop at a particular store very often and they offer a credit card, it could be a good idea to use that card. As long as you completely understand the terms and use it responsibly, you’ll improve your credit and can move on to better cards if you’d like.

Sometimes these cards are connected with a payment network, like Visa or Mastercard. But in other cases they aren’t. This is important, because unless your card is part of a network like Visa you can only use it at the store it’s associated with.

Take a moment to watch our video below on a few of the most important things to know about store credit cards. If you decide that one is right for you, learn more about store credit cards and then check out our picks for the Best Store Cards. 3 Things You Should Know Before You Apply

Store credit cards can be a good way to build or rebuild your credit and get some rewards while shopping, as long as you’re sure to follow the terms and pay them off on time. In some cases, store cards have special financing deals that you need to pay very close attention to, or you can end up getting burned with retroactive interest charges. If you’re not careful, not only will you end up paying more for interest, you can also do damage to your credit scores.

• Track your credit scores using a free credit monitoring service to be sure that you’re making progress, and to get specific tips based on your credit reports. Discover and Capital One both have free credit monitoring tools for non-cardholders.

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