When you have bad credit, one of the best things you can do is try to start fresh with a brand new line of credit and work on building a strong, healthy credit history with that card because it’ll help open doors to new and better offers in the future. There are a lot of choices for credit cards that help repair and rebuild credit, but you have to choose wisely because not all offers are “good” offers.
Capital One Secured MasterCard
A secured card means that you’ll have to put down a deposit once you’re approved for a line of credit, but with this card, there are no annual fees. This is important because many secured credit cards will charge consumers an “annual fee” that will automatically get billed to the card once the deposit has been paid which starts you off with debt before you even have the chance to use the card. Some annual fees can be as little as $25 per year, but some may charge upward in the amount of $200 or more! With the Capital One Secured card, it reports to all 3 credit bureaus and you can earn a credit line increase after making your first 5 monthly payments on time.
Total Visa Unsecured Credit Card
Another card geared for those with bad (and fair) credit that does not require a deposit, but you must still have a checking account (to make online payments when your bill is due). Once you’re approved for this credit card, there are no annual fees but you will be required to pay a one-time processing fee which may be determined upon approval. This card is not available to New York or Wisconsin residents.
Control Prepaid MasterCard
With a prepaid card, there are no credit checks at all. Ever. There is no mininum balance with a Control Prepaid MasterCard and you can even have your paychecks direct deposited onto the card. There are no overdraft fees or other hidden fees. This card does not report to any of the credit bureaus so it won’t help rebuild your credit (since it doesn’t tell creditors that you are using it responsibly) but it can be beneficial for those who would like to make online purchases or to those who wish not to carry cash or cannot have a traditional checking account. If you opt for direct deposit on this card, you can receive your pay up to 2 days faster than if you waited for a paper check or the deposit to hit your traditional checking account.
Depending on how quickly you’re wanting to rebuild your credit and how much cash you have available, you might want to weigh your options carefully before deciding on which card is right for you before you apply. Applying for several cards at once can negatively impact your credit because you’ll have too many credit inquiries within a short time on your credit report. Another thing you can do is research customer reviews to see what they like (or dislike) about their card before you apply for it.