Just because you have bad credit does not mean you cannot get a credit card in the US. Although the card you would qualify for may not have the lowest available interest rate, the best rewards, or the highest credit line, you would still have numerous options for securing a card to help get back on track financially. With the new credit card specifically designed for people with bad credit, not only would you have flexibility in spending but also the opportunity to build good credit.
Millions of people all over the country have faced tough financial situations, especially since the start of the global financial crisis. With homes being lost, jobs eliminated, and income reduced, many people have been left in a very difficult situation. At the time, it feels as if the end of the world has come but in truth, there are ways to start over. Once of these is by applying for the right credit card, one issued by a reputable company and a card that has been created just for a situation such as this.
We wanted to show you some of the better known credit cards in the US that are available for people with bad credit. As long as payments are made on time, you never go over the set credit line, and you follow all the rules, the credit card can be extremely beneficial. As you start researching different options, you may find “bad credit cards” called several things, one being a subprime credit card. The reason is that the interest charged would not be prime, but subprime, meaning the amount of interest charged would be much higher than if you had good credit.
Additionally, some credit cards for people with bad credit are secured, meaning you would be required to make a deposit into a special account, and some are unsecured in which you would have a credit line backed by the bank or credit card company. Another option is the prepaid credit card. For this, the card would be loaded with money the same as a secured credit card but the difference is that once a prepaid credit card reaches zero dollars, the card would be void whereas with a secured card, you can keep making additional deposits to keep the card active.
The following are just a few of the better known credit cards in the US available for people with less than perfect credit.
Secured Credit Cards
• Public Savings Bank Credit Card – This secured credit card offers an introductory period of six months during which time the Annual Percentage Rate would be at 0%. After this time, the APR is 11.24%. In addition, this card has no monthly or annual fees, there is no penalty APR, all three of the credit bureaus receive reports on how well you manage the card, and the degree of your poor credit is not a factor in being approved.
• Capital One MasterCard Secured Credit Card for Young Adults – Whether someone with no established credit or trying to rebuild good credit, this Capital One card is a good option. Capital One also reports to the three main credit bureaus and the benefit of this US card is that as you make payments on time and follow all the rules, this issuer will start to increase your available credit line but without you needing to increase the amount of deposit. The APR on this card is set at 19.8% and while high, it offers the chance to get back on your feet financially.
Prepaid Credit Cards
• Visa ACE Prepaid Card – While called a debit card, it also works as a prepaid credit card. To apply, there is no fee and when taking out a cash withdrawal, you would not be charged. However, you would need to get money from more than 1,600 approved locations. In addition, this card provides free unlimited purchase transactions if you choose to become a member of the Fee Advantage Plan, you are not required to maintain a minimum balance, and you would never be charged an overdraft fee.
• MasterCard Mango TM Prepaid Card – The last option we wanted to mention is backed by MasterCard, which costs nothing to activate. Other features include free direct deposit, free online account management, free unlimited purchase and signature transactions, no bank account required, no credit check for approval, and no overdraft fees. In fact, if you load this US credit card with $500 or more, the monthly fee would be void.
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