The Best Credit Cards for People with Bad Credit

The Best Credit Cards for People with Bad Credit
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David Andrew
By: David Andrew
Posted: May 1, 2013
Experts share their tips and advice daily on BadCredit.org, helping subprime consumers navigate the world of personal finance.

A bad credit score puts you in a pretty tough situation.

One of the best ways to repair your score is to take out a credit card and make all the monthly payments on time.

However, most credit cards for people with poor credit charge massive fees and are inconvenient to use.

1. Low fees and deposit – The Capital One Secured MasterCard.

When you have a weak credit score, most of your options will be secured credit cards. With these cards, you need to make a large deposit to back up your credit limit.

Since many of these programs charge an annual fee as well, this equals a pretty sizable upfront cost.

With the Capital One Secured MasterCard, you will not have these problems. This card charges a very reasonable fee – $29.

Its security deposits are also very low considering the benefits.

For $49, you can get a $200 credit limit. For a $200 deposit, you can get a credit line up to a maximum of $3,000.

The downside of this card is it charges a high APR, so make sure to always pay off your purchases.

“Having a bad credit score doesn’t

mean you have to settle for a bad credit card.”

2. Lowest interest rate – The Open Sky Secured Visa Card.

If you plan on keeping a balance on your credit card, the interest rates on bad credit score cards will be a problem. Many cards charge 20 percent or more a year in interest.

On the other hand, the Open Sky Secured Visa Card is actually fair. This card charges a low 9.75 percent APR on your account balance.

This is low even by regular credit card standards. You do need to pay a $50 annual fee for this card and make a secured deposit, but it is hard to find a better deal on the interest rate.

3. Rewards – The U.S. Bank Harley Davidson Visa Secured Card.

Most credit cards for people with bad credit do not offer rewards. Just getting a line of credit is difficult enough in this situation.

If you want to earn rewards on your purchases, you can use the U.S. Bank Harley-Davidson Visa Secured Card.

This card earns points on your purchases that are good for merchandise with Harley Davidson. Another perk is this card does not charge an annual fee.

If you pay off all your purchases each month, you are earning free rewards just by using this card. It is hard to find anything close to this in terms of rewards when you have a bad credit score.

Having a bad credit score does not mean you have to settle for a bad credit card. With one of these programs, you can repair your credit, while getting a decent deal at the same time.

Photo: blog.frannet.com.