If you’re struggling with bad credit, you may feel like getting approved for a credit card is an impossible task. However, despite the challenges, there are credit card options available specifically designed for those with a low credit score. These credit cards can help you rebuild your credit score and improve your overall creditworthiness over time. In this article, we’ll explore what “bad credit” means in the context of credit card applications and highlight the best credit cards for individuals with bad credit scores. With this information, you’ll be able to make an informed decision when choosing a credit card that fits your needs and helps you on the path to a healthier financial future.

What is bad credit in credit card applications?

When you apply for a credit card, the credit card issuer will check your credit score to determine if you’re eligible for one. Three digits that represent your creditworthiness make up your credit score. The higher your credit score, the more likely you are to be approved for a credit card with favorable terms.

If you have a low credit score, typically below 600, you may be considered a high-risk borrower, and it may be challenging to get approved for a credit card. However, having bad credit doesn’t mean you can’t get a credit card. Many credit card issuers offer credit cards designed specifically for those with bad credit scores.

The Best Credit Cards for Low Credit Scores

Here are some of the best credit cards for bad credit scores:

Discover It Secured Credit Card

The Discover it® Secured Credit Card is an excellent option for those with bad credit scores. This card requires a security deposit, but it offers rewards, which is rare for a secured credit card. For combined purchases of up to $1,000 per quarter at gas stations and restaurants, you’ll receive 2% cash back; for all other purchases, you’ll receive 1% cash back.

Indigo Platinum Mastercard

The Indigo® Platinum Mastercard® is designed specifically for those with bad credit scores. This card doesn’t require a security deposit, but it does come with a higher annual fee. However, the Indigo® Platinum Mastercard® reports to all three major credit bureaus, which can help you rebuild your credit score over time.

OpenSky Secured Visa Credit Card

Another secured credit card option without a credit check is the OpenSky® Secured Visa® Credit Card. This card is an excellent option for those with bad credit scores who want to rebuild their credit. The OpenSky® Secured Visa® Credit Card reports to all three major credit bureaus and offers a credit limit that’s equal to your security deposit.

Factors to Consider When Choosing a Credit Card for Bad Credit

Credit Score Requirements

Make sure you check the credit score requirements before applying for a credit card. Some credit cards may require a minimum credit score, while others may not.

Security Deposit

A security deposit, which can be anywhere between a few hundred dollars and several thousand dollars, is typically needed for secured credit cards. Make sure you can afford the security deposit before applying for a secured credit card.

Annual Fees

Some credit cards for bad credit may come with an annual fee. Make sure you understand the annual fee and how it will affect your credit card usage.

Rewards Program

While most credit cards for bad credit may not offer rewards, some may offer cash back or rewards points. Make sure you comprehend the rewards program’s principles. 

The Best Ways to Raise Your Credit Score with a Credit Card

Getting a credit card for bad credit can help you rebuild your credit score over time. Here are some tips on how to improve your credit score with a credit card:

Make timely payments.

One of the most crucial things you can do to raise your credit score is to make timely payments. Pay your credit card bill on time every month to avoid late fees and negative marks on your credit report.

Keep your credit utilization low.

Your credit utilization ratio measures how much of your credit you are actually using in comparison to your credit limit. Keep your credit utilization low, ideally below 30%, to improve your credit score.

Don’t submit multiple credit card applications at once.

Your credit score may suffer if you apply for several credit cards at once. Every time you apply for a credit card, a hard inquiry is made on your credit report, which could lower your credit score.

Monitor your credit score.

To keep track of your progress and find any errors on your credit report, regularly check your credit score. The three major credit bureaus are required to provide you with one free credit report each year.

Conclusion

In conclusion, while having bad credit can be a hurdle to obtaining a credit card, it’s not impossible. With a bit of research and an understanding of the factors to consider when choosing a credit card for bad credit, you can find the right option that fits your needs and helps you rebuild your credit score. By using your credit card responsibly and making timely payments, you can gradually improve your credit score and open up more financial opportunities for yourself in the future. Remember to be patient, consistent, and proactive in managing your credit score, and you’ll be on your way to a brighter financial future.