11 Best “Credit Repair” Credit Cards (Learn to Rebuild Your Credit Score)

11 Best “Credit Repair” Credit Cards (Learn to Rebuild Your Credit Score)
GUIDE

Advertiser Disclosure

Ashley Dull
By: Ashley Dull
Posted: June 17, 2016
BadCredit.org's popular "How-To" series is for those who seek to improve, rebuild or better understand their subprime credit rating.

Maybe you’ve made some mistakes with money in the past that have left your credit score lower than you want it to be. The good news is that reading this article shows you understand the importance of having good credit, and you’re seeking ways to improve it. You’ve probably heard that using a credit card can help repair your credit, so you’re now in search of a credit repair credit card. Now for the bad news: that’s not exactly true.

There aren’t credit cards that “repair” your credit, per se, but rather help to rebuild your credit score slowly with responsible use. Basically, this means that if you’re looking for a quick fix, you’re better off going with a credit repair company, which we’ll help explain in more detail later. But if you’re looking for a loan that can help improve your score over time as long as you follow a few basic rules, then a credit card for bad credit can be a great solution. We’ll take a look at both options and explain why we like each.

First, Decide Between Unsecured & Secured Credit

First things first — there are two different credit card options for people with poor credit, and those are unsecured and secured. Unsecured is what the majority of cardholders carry, and does not require any money down to get a line of credit. Secured, on the other hand, does require a deposit to secure a line of credit, hence its name.

Oftentimes, the amount you’re able to put down as a deposit is the credit limit you’ll be issued, and most issuers have minimums for this amount, usually ranging between $300 and $500. Secured credit cards are generally for people on the lower-end of the credit score spectrum (less than 600), as the deposit is the issuer’s way of protecting itself in the event a payment is missed, in which case it’s then deducted from the deposit.

8 Best Unsecured Credit Cards for Rebuilding Credit

The nice thing about most unsecured cards is that they offer reward potential, such as cash back on purchases like gas and groceries, even if you have bad credit. This of course depends on the card itself, but we’ve bulleted out the highlights of each card below for you to evaluate based on what you’re looking for.

Here are eight of our expert’s top unsecured picks for less-than-perfect credit:

  • Checking account and $10,000 gross annual income required
  • Unlike some other issuers, good credit is not required
  • All credit types welcome to apply
  • Reports to the major Consumer Reporting Agencies
  • Application response in 30 seconds
  • A credit card offer for those currently building credit history
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Checking account required
  • Fast and easy application process; response provided in seconds
  • A genuine VISA card accepted by merchants nationwide across the USA and online
  • Manageable monthly payments
  • If approved, simply pay a processing fee to open your account and access your available credit
  • Reports monthly to all three major credit bureaus
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes 29.99% Yes 8.5/10
  • Checking account required
  • A manageable credit limit can help you stay in control
  • This is a credit card - not a debit or prepaid card
  • Track your progress. Your FICO Score is provided for free on your monthly billing statement.
  • Make your payments on time each month, and keep your balance low relative to the credit limit, for positive marks on your credit report.
  • Click here for official site, terms, and details.
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Checking account required
  • Monthly reporting to the major Consumer Reporting Agencies
  • Response provided in 60 seconds or less
  • No security deposit required
  • Apply today, and if approved, pay a Processing Fee and you can access your available credit (additional fees and charges apply)
  • Click here for official site, terms, and details.
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.5/10
  • Up to $5,000 spending limit in less than 60 seconds
  • Shop from over 100,000 brand name products such as Apple, Samsung, Sony, Gucci, Prada and much more with low easy payments.
  • Less than perfect credit accepted. Approval is quick and easy
  • Must be 18 years or older, have a valid checking account and a verifiable source of income
  • Up to 12 months same as cash
  • 50% Early Payoff discount
  • No hidden fees
  • Return at any time
  • Click here for official site, terms, and details.
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 Minutes See website No New Offer
  • Monthly reporting to the three major credit bureaus
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere that MasterCard® is accepted
  • Free online account access 24/7
  • Checking account required
  • Click here for official site, terms, and details.
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes See terms Yes 8.5/10
  • Must have checking account to qualify
  • A credit card offer for those currently building credit history
  • Credit card response in 60 seconds or less
  • First PREMIER Bank may approve you when other issuers will not
  • If approved, pay a ONE-TIME Processing Fee to open your account and access your available credit (additional fees and charges apply)
  • Click here for official site, terms, and details.
★★★★

4.4

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes See issuer website Yes 9.0/10
  • Credit One automatically monitors every account for credit line increase opportunities. We’ll let you know as soon as you’re eligible for additional credit.
  • See if you're Pre-Qualified without harming your credit score. In less than 60 seconds, find the card that's right for you.
  • This fully unsecured credit card with no deposit requirement can be helpful in growing or building credit. Your account will be reported monthly to all three major credit bureaus.
  • Zero fraud liability protects you from unauthorized charges.
  • Click here for official site, terms, and details.
★★★★

4.3

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 Minutes 15.65% - 24.15% (Variable)* Yes 9.0/10

Something to note about credit cards for bad credit is that they usually carry high interest rates, so it’s beneficial to pay off the balance in full each month and avoid paying interest altogether – basically, it’s in your best interest to pay zero interest!

3 Best Secured Credit Cards for Rebuilding Credit

Secured cards work well for those who do not need a large amount of credit (equal to the deposit), but also have the capital to put down for it. This is truly an option for someone who isn’t necessarily in need of a loan, but rather using the card to rebuild their credit. This works because payments will be reported to the credit bureaus, who keep record of your credit history, aka your credit report.

Below are three of our expert’s favorite secured credit cards:

  • Credit line secured by your fully-refundable deposit of $200-$5,000 submitted with application
  • Low fixed 9.99% APR on purchases. Guaranteed approval* if your monthly income exceeds your monthly expenses by $100 or more.
  • Perfect card for establishing or re-establishing credit. Reports monthly to all 3 credit bureaus.
  • Fast, easy application process.
  • No processing or application fees.
  • Click here for official site, terms, and details
   
★★★★

4.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 minutes 9.99% Yes 9.0/10
  • Credit line secured by your fully-refundable deposit of $200-$2,000 submitted with application
  • Pay off your balance & get your deposit back any time
  • Monthly reporting to all 3 major credit bureaus to establish credit history
  • Not available in: NY, IA, AR, or WI
  • No credit history or minimum credit score required
  • See if you are pre-approved in 60 seconds or less
  • Click here for official site, terms, and details.
★★★

3.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes 19.99% (V) Yes 7.5/10
  • Credit line secured by your fully-refundable deposit of $200-$2,000 submitted with application
  • Pay off your balance and get your deposit back any time.
  • Monthly reporting to all 3 major credit bureaus to establish credit history.
  • Not available in: NY, IA, AR, or WI.
  • No credit history or minimum credit score required.
  • See if you are pre-approved in 60 seconds or less.
  • Click for for official site, terms, and details.
★★★

3.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 minutes 11.99% (V) Yes 7.5/10

Secured cards typically refund the deposit amount in full when the account is closed (assuming it wasn’t used to cover a missed payment), but be sure to read the fine print.

How to Rebuild Credit Using a Credit Card

Now that you understand the difference between unsecured and secured, and have hopefully decided which is best for your credit and spending needs, the next step is learning how to use the card to achieve your credit repair goals.

First and foremost, choosing a card that reports payments to the credit bureaus – Experian, Equifax, and Transunion – is THE MOST IMPORTANT factor. Otherwise, your credit card is useless for improving your credit. A prepaid card, for example, will not have any effect on your credit score as prepaid cards do not report payments. Some cards may only report to one or two bureaus, while others will report to all three.

Simply being approved for a card and having it won’t magically improve your score, though it can have immediate effects on your credit utilization ratio or your mix of accounts, which is just a part of the factors that determine your credit score.

The reality is having a credit card can hurt your score the same as it can help improve it. It all comes down to responsible usage of the card, which can be done by following a few best practices:

  • Always pay your bill on time. On-time payments is the most heavily weighted factor used to determine your credit score.
  • Keep your credit utilization below 30%. This means if you have a limit of $1,000, never have a balance of more than $300 on your card. Using a high percentage of your available credit hurts your credit score.
  • Pay more than the minimum each month, if possible. Better yet, always pay your balance in full to avoid paying interest. This is especially true for cards with rewards, otherwise the interest paid will outweigh the rewards earned.

Remember, this can be a slow rebuilding process, and only works if the card is used responsibly. Especially if you have past negative marks on your credit report, which can take a full seven years to be removed. Responsible use of one credit card will have little effect if you have multiple negative marks (charge-offs, bankruptcy, loan default, etc.) looming on your credit reports. These can have a significant impact on a credit score, but the following credit repair companies may be able to help you remove them and improve your credit history and score more quickly.

Hire a Credit Repair Company if You Need a Quick Fix

If you want to repair your credit because you have a big purchase coming up, such as a mortgage or auto loan, you’re probably better off hiring a credit repair company. Most offer free consultations and can evaluate your credit report for items they can work to have removed on your behalf.

It’s reported that as many as 1 in 5 Americans have errors on their credit reports, and a credit repair agency can help to have these errors removed for you. Here are our top three recommendations for reputable credit repair services:

  • Toll-free number: 1-855-200-2394
  • Reporting clients see 85% of negative items removed
  • More than 3.3 million item deletions last year
  • No contracts
  • Free credit score summary provided
  • Phone support from licensed paralegals 7 days a week
  • More than 500,000 clients served since 1991
  • Click here for sign-up form, terms, and details.
★★★★★

4.8

Overall Rating

Better Business Bureau In Business Since Monthly Cost Reputation Score
A- 1991 $79 - $99 10/10
  • Toll-free number: 1-855-200-2393
  • Three-step plan for checking, challenging and changing your credit report
  • Over 15 years of experience in credit repair
  • Registered with the Department of Justice
  • Online tools to help clients track results
  • Click here for sign-up form, terms, and details.
★★★★

4.0

Overall Rating

Better Business Bureau In Business Since Monthly Cost Reputation Score
A+ 1997 $99 9.5/10

Some credit repair agencies even offer a money-back guarantee, and our top rated service, Lexington Law, helps its clients see 85% of negative items removed.

So, is a Credit Card or Credit Repair Really Right for You?

To recap, a credit card offers access to credit and an opportunity to rebuild credit slowly with responsible use, whereas credit repair services can remove negative items from your credit reports to have a potentially larger impact in a shorter amount of time.

It really depends on how many past “mistakes” you may have made and how they’re impacting your credit today, as well as your ability to be approved for a credit card. Credit can be a complicated subject matter, but you’re seeking ways to understand and better it, and for that alone you’re ahead of most. Now that you’re armed with the necessary knowledge, choose a credit repair solution that works best for you, and stick to your credit repair goals.