Credit scores are significant to our ability to request credit cards. Having a low FICO score has become the most common problem people encounter when trying to get credit. A low credit score is usually considered to be below 600. Sometimes, even a FICO score of 650 is deemed low. It varies from lender to lender and their capacity to take the risk. A credit score that one bank considers acceptable may be regarded as unacceptable by other banks for similar credit.
When you have a low FICO score, you face difficulty in getting credit or are unable to purchase or rent a property. This is because any lender would run a check on your FICO score to know your creditworthiness. So, therefore, a low credit score is an indication of low creditworthiness. FICO uses five significant factors to determine your score in the range of 300 – 900 points. Aspects like past payment history, the balance owed, length of credit history, amount of new credit, and the type of credit used go a long way to determine your score.
So if you have low credit score issues, here are a few credit cards you can apply for to suit your needs even with a poor credit history or report:
1. Discover it Secured credit card
Discover requires no credit history or annual fee but offers cash back and aids to help build your credit. It’s a real credit card that makes a credit history with the three major credit bureaus. Because debit and prepaid cards can’t help you build a credit history.
With this card, you can establish your credit line by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
It gives automatic reviews starting at eight months to see if you can transition to an unsecured line of credit and return your deposit.
Activation is free, and you also get a notification if your SSN is found on any of the thousands of dark web sites making it one of the best and most secure for building credits. You can apply for the card at discover.com/credit-cards/secured.
2. Capital One Secured Mastercard
This card is issued by Capital One. This is a credit card for people that want to rebuild their credit. The card has no annual fee, but it has a variable APR at 26.99%. This shouldn’t matter if you pay the balance within 1 month. This Secured Mastercard requires a deposit of either $49, $99 or $200 refundable deposit. Making the minimum required security deposit will get you an initial credit line of $200. You should note that if you make a higher deposit before your account, you will be eligible to get a higher credit line.
The benefits of having this card are $0 Fraud Liability if it is stolen or misplaced, no foreign transaction, 24-Hour travel Assistance services, and many more. You can apply for the card.
3. Surge MasterCard
Having bad credit is no problem with the Surge MasterCard. It offers a maximum initial credit limit of $500, subject to available credit. However, you will have to put up a refundable security deposit ranging from $50 to $500.
Surge MasterCard require a checking account and allow only U.S residents who are 18 years and above to apply.
Like Discover It, reports your transactions each month are reported to the three major credit bureaus. So paying bills on time and maintain a low balance will have a positive effect on your credit score.
Compared to some of its competitors, it has a higher annual and monthly maintenance fee. They also five 25 days period for payments following the close of the billing cycle.
4. Milestone Gold MasterCard
This card doesn’t give cash back or points and requires a credit history or score from 300 – 670. Milestone Gold offers you an easy, fast, and quick pre-qualification process with no impact on your credit score. They allow customers the opportunity to choose their preferred custom card design and online account access for free.
Its MasterCard is accepted in over 35 million locations worldwide and protects against fraud for customers who have had their cards lost or stolen. You can apply for the card.
5. Credit One Bank Platinum VisaCard
The Credit One Bank Platinum Visa is basically for Rebuilding Credit and is very similar to the issuer’s Cash Back Rewards card. However, this card accepts applicants with lower credit scores, and its cashback program is limited. You will not earn or receive rewards while your payments are inadequate.
This card offers 1% cashback rewards on eligible purchases, tracks your credit score online and monitor how your credit changes. It also provides flexibility to choose your payment due date.
The card’s minimum credit line is $300, and you receive $0 fraud liability coverage, free monthly credit scores, and online account notifications. After your first billing period, you can change the payment due date once every six months.
6. com Credit Builder Card
This Card is issued by Synchrony Bank, can be used for online purchases at Amazon.com. You apply using a dual application form that also covers the Amazon.com Store Card for customers with much better credit. The Credit Builder Card requires a security deposit of at least $100. Your security deposit is your credit limit.
With the Amazon Credit builder card, you pay no annual fee, earn 5% cashback at Amazon.com for Prime members, Earn a $40 Amazon.com gift card upon account opening.
You will also receive free credit score monitoring and be automatically considered for an upgrade to the Store Card in just seven months. The card issuer reports your transactions to the major credit bureaus like most credit cards. You can apply for the card.
This variety of credit cards will help get you credit depending on your qualifications and will help build your score back up so you can get more loans.
