According to a study by Experian1, 34% of Americans have a poor credit rating of below 669. Low credit scores can negatively affect one’s financial opportunities and ability to keep up with societal expectations. Fortunately, there are credit cards available specifically for those with poor credit. These cards have low fees, and by using them responsibly, individuals can rebuild their credit score over time and save money. In this article, we have reviewed the top credit cards that can help you rebuild your credit score.
If you have a poor credit rating, getting approved for a new credit card can be challenging. However, having a credit card and demonstrating improved financial management can help you rebuild your credit score over time. To support people in this situation, financial companies are offering affordable options with low interest rates to help boost credit scores.
The Top Bad Credit Card Options For 2023
Capital One Platinum Secured Credit Card
With no annual or hidden fees the Capital One Platinum Secured Credit Card2 is a great option for those looking to improve their credit scores. It only takes seconds for a pre approval giving you access to a card which also comes with CreditWise which is a live tracker of your current credit score. With just a $49 security deposit which is totally refundable opens up a $200 initial credit line. In just 6 months time if the cards finances have been carefully managed you can be considered a higher credit line automatically with no extra deposit.
Surge Secured Mastercard
The Surge Secured MasterCard3 is an option for all credit scores no matter how poor. Although it requires an initial deposit of $300 which is totally refundable this card also offers 1% cash back on every purchase. The Surge card offers monthly reporting back to credit bureaus keeping your credit score constantly updating and hopefully improving with well balanced finances. It comes with a fast and easy approval process but will also require a $69 annual fee.
Aspire® Credit Card
The Aspire credit card4 accepts all credit types but still requires an initial approval which takes just seconds. The annual fee for the first year is $85-$175 depending on which rates you select and $29-49 each year after. Offering a 1%-3% cash back reward rate this card has some of the better benefits to a bad credit score credit card.
OpenSky® Secured Visa® Credit Card
OpenSky5 offers a card that is accepted worldwide with a relatively low annual fee of $35. This card helps people with bad credit by minimising costs involved with other credit building card options. Opensky actually doesn’t require a credit check but a refundable deposit of up to $200 is required to open the card. They even have a Facebook community with other bad credit users who help to share experiences and tips for boosting their score. With reporting to credit bureaus this is a fantastic option for those ready to improve their credit score in 2023.
Fit Mastercard Credit Card
Another option no matter what your credit score is the Fit Mastercard.6 It comes with a $400 initial credit limit which is doubled to $800 if you make the first 6 months minimum payments on time. It offers free access to Vantage 3.0 score from Experian if you sign up for e-statements which helps to easily view credit bureau rankings.
Tips For Boosting Credit Scores Faster
The pandemic has created a record jump in the US unemployment rate and the financial state of citizens varies enormously. If you’re anxious about having a lower credit score don’t worry because there are tips to stick to quickly improve your score.
Setup Automatic Bill Payments – The best way to avoid missing monthly payments on a credit card is to setup automatic bills. Simply by keeping some money in your checking account at all times will help to not miss a bill keeping your score constantly rising.
Pay Down Balances – A crucial role in improving your credit score is to focus on paying down any high interest debts first. Decreasing your credit card balances before other loans like student loans shows credit lenders that you’re responsible with your credit. Keeping your credit utilisation under 30% is suggested at all times to keep credit scores improving.
Dispute Inaccuracies – You can receive a free credit report from AnnualCreditReport.com which uses the three main credit bureaus. Investigating these reports yourself can help to identify if any inaccuracies or mistakes have been noted by a bureau affecting your score. Incorrectly reported late payments are a common mistake people find which lowers your credit score rating.
Pay Off Credit Card Every Month – Its an obvious one, but still one of the most important steps to rebuilding credit scores. Paying off your balances every month is vital helping to keep credit utilisation scores low and strengthening your credit score.
Find The Perfect Low Rate Credit Card
If you’re ready to start improving your credit score in 2023, finding the right credit card is essential. With numerous options available, it can be challenging to determine the best choice for your long-term goals. You can easily find credit card options for those with poor credit that offer additional benefits and discounted rates by conducting a simple online search.