Do you know that fifty-six percent of Americans have bad credit? This number demonstrates that over half the people in the United States are struggling financially. The ramifications of this statistic can be seen in the approval ratio for credit cards. Repetitive denials leave people with poor credit feeling hopeless and wondering the point in even owning a credit card. Unexpected emergencies and setbacks occur. A new tire, doctor’s visit, or family emergency can put you in a worse financial state. Therefore, no one deserves to be continually denied for credit cards. Above all, hope isn’t lost! There are two types of credit cards that can give you easy approval with bad credit!
Unsecured Credit Cards
Unsecured credit cards are the most common type of credit card to have. These cards don’t require any kind of collateral to be approved. However, before applying for an unsecured credit card, you should know the two things to look for.
The first is to consider are factors credit card companies evaluate for approval and denial. These things include factors such as credit card utilization, recent hard inquiries, number of 30-day delinquencies, and the status of mortgage and installment payments.
Having a bad rating in any of these areas could be an instant denial. The second factor to regard is low-interest rates and monthly payments. With having bad credit, it is best to keep your credit card interest rates and your monthly payments as low as possible.
You never want to make the situation worse by agreeing to high contract terms that can hurt you in the future. Recognizing these items, before applying allows you to save time and to prevent inquiry checks that could impact your credit score.
Unsecured Credit Cards for Poor Credit
- Credit One – Do you have bills that don’t fall on paydays? If so, Credit One is the card for you! Annual fees for Credit One can vary between $0-$99 depending on the credit limit; with lines of credit that start at $400!
- First Premier – Easy approval credit card that comes with perks! First Premier comes with a cash back and cash advances. In addition, this unsecured credit card comes with a one-time processing fee of $95. Don’t have $95, then no problem. This amount can be deducted from your credit line which ranges from $200-$2000. All you need is a checking account to apply.
- Total Visa – Similar to First Premier, Total Visa requires cardholders to have a checking account. They also have a processing fee of $89 and carries an annual interest rate of 29.99%. Not a bad option to review credit.
- Milestone – The awesome advantage of Milestone is that they have a fixed interest rate at 23.90%. With this credit card company, you don’t have to worry about your interest rates constantly changing, as with most other credit cards.
- First Access – What makes this company stand out? They approve of you when others don’t. First Access has the same exact processing fee as Total Visa and First Premier. Luckily, it is another great option for credit card seekers.
Secured Credit Cards
The great advantage of secured credit cards is fewer restrictions than unsecured credit cards. The reason why is because the limit of your credit card is supplied by your own money! This type of card works as a monitoring system, keeping a track of your purchases and of your monthly payments. Here is a list of the five best-secured credit cards.
- Open Sky – This credit card is one of the best-secured cards for persons with bad credit! Open Sky comes with no credit check and refundable deposits. This card has an annual fee of $35 with an annual interest rate of 18.14%. Great deal!
- Discover It – Progress goes a long way with Discover It Secured Credit Card. After eight months, the company will review your payment history and transition cardholders to an unsecured credit card with them. In addition, Discover It offers cash back rewards for up to $1000.
These are Some Good Options
- Primor Secured Visa Classic Card – Primor beats all its credit card peers with a low-interest rate of 13.99%. This no credit check card has credit limits that range from $200-$5000, deposit whatever amount feels comfortable to you!
- First Premier Bank – First Premier is also another no credit check company. If you want to try out another credit card company after first premier, then simply pay off your balance to receive your full security deposit. No hassle process!
- The Secured Visa from Merrick Bank – Merrick Bank is a dream for everyone with poor credit! Negotiate your security deposit and after a year your credit line increases. Meanwhile, you have access to your FICO score for free!
Despite what society teaches, having bad credit doesn’t have to be a looming dark cloud that hangs over your head for the rest of your life. Hope to have a better financial life is never lost. There are secured and unsecured credit cards available to help people with bad credit! Simply find one that best suits your needs!