Having bad credit or a very limited credit history makes getting a credit card tough. But secured credit cards are generally easier to get, and in some cases, they can help you improve your FICO score enough to qualify for an unsecured card. With a secured card, you make a cash deposit, which the issuer holds as collateral in case you don’t pay your bill. The deposit reduces the issuer’s risk, which is why secured cards can be an option for those with bad credit.
Here are the Nerds’ favorite credit cards for people with bad credit:
Best for low deposit
- Qualify with limited / bad credit
- No annual fee
- No foreign transaction fee
You may qualify for a credit line increase based on your payment history and creditworthiness with no additional deposit required
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
- Your minimum security deposit gets you a $200 credit line
- You may qualify for a credit line increase based on your payment history and creditworthiness with no additional deposit required
- Easily manage your account 24/7 with online access, by phone, or using our mobile app
- It’s a credit card accepted at millions of locations worldwide
Minimum deposit of $49, $99 or $200, depending on your credit. You can pay the deposit over time. Reports to the major credit bureaus. Annual fee is $0.
Benefits of the Capital One® Secured MasterCard®:
- You don’t have to make your collateral deposit all at once. You can pay in installments, as long as the deposit requirement is met within 80 days of account opening.
- You may be able to get a credit line of $200 with a deposit of only $49 or $99, depending on your credit. Most secured cards set your credit line equal to your deposit.
- Over time, you may qualify for a higher credit line without putting down an additional deposit, a rare opportunity among secured cards.
- The card’s $0 annual fee is low compared with other secured cards.
Drawbacks of the Capital One® Secured MasterCard®:
- This card has a high interest rate: The ongoing APR is 24.99% (Variable).
- The Capital One® Secured MasterCard® card doesn’t offer a rewards program. This is common for secured cards, but it’s possible to find those perks elsewhere.
BarNone (1-800-BarNone) is a lead generation company based in Oakland, California. BarNone was founded in 1995 and was later purchased by the First Advantage Corporation in 2005 for their Dealer Services segment. They were later sold to Centrro, Inc. in August 2009.
BarNone connects consumers seeking an auto loan with auto dealerships...