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If your credit score is below 580, that puts you in the “bad credit†category – but that doesn’t mean you don’t qualify for a credit card. There are credit cards that can give you a second chance to build or rebuild your credit profile. Although it takes time to build up credit, second chance credit cards will give you the opportunity to get a new financial start.
Second Chance Credit Cards are designed for people with low credit scores, making it easier to get approved. Keep reading to learn more about some of the best second chance credit cards on the market today.
Best Second Chance Credit Cards
Credit cards fall into one of two categories: secure and unsecured. Unlike unsecured cards, secured credit cards require a security deposit. Here’s a look at the top five second-chance credit cards, including the best with no security deposit.
Ideal for cash back rewards: discover the Secure Credit Card
The Discover it Secured Credit Card offers various cash back rewards, unlike other secured credit cards. The card offers 2% cash back up to $ 1,000 in combined spending at gas stations and restaurants each quarter. You’ll also get unlimited 1% cash back rewards on every other purchase. Additionally, the card comes with Cashback Match, which doubles any cash rewards you’ve earned at the end of your first year of owning the card.
Plus, this credit card has no annual fees and will help you establish your credit history with the three major credit bureaus. To get this card, you need to deposit an amount equal to your line of credit. The card requires a minimum security deposit of $ 200.
Discover will automatically assess your account activity after eight months to see if you meet the requirements for an unsecured credit card. If you are eligible, Discover will refund your deposit.
Ideal for a low deposit: Capital One Platinum Secured Credit Card
Secured cards generally require that you deposit an amount equal to your line of credit. But with Capital One’s Platinum Secured card, you can get a credit limit of $ 200 after making a refundable deposit of just $ 49.
The Platinum Secured Card is another second chance credit card with no annual fees or overseas transaction fees. The card does not offer any rewards, but you can increase your credit in a matter of months. Capital One will review your line of credit in as little as six months.
This card, however, has a very high variable APR of 26.99%, and you can end up with late payment fees of up to $ 40 if you don’t make payments on time.
Best for No Credit Check: OpenSky Secure Visa Credit Card
The OpenSky Secured Visa Credit Card does not perform a credit check when you apply, so you can start building your credit right away, regardless of your credit history. OpenSky will report your account activity to the three major credit bureaus on a monthly basis to help you improve your credit score quickly.
Like other secured credit cards, there is a minimum refundable security deposit of $ 200, and with approval you can deposit up to $ 3,000. The card also comes with an annual fee of $ 35.
Ideal for no security deposit: One Bank Platinum Visa credit for credit rebuilding
Credit One Bank Platinum Visa for Reconstruction Credit is one of the best unsecured credit cards. This means that you can get this card without having to pay a security deposit.
The card also offers 1% cash back on daily purchases, including gas, groceries, internet, cable and more. You can also choose a payment due date that works for you – and Credit One Bank gives you the option to change it.
This card has an annual fee of $ 75 for the first year, and after that it’s $ 99 per year. On top of that, the card has a high variable APR of 23.99%.
Ideal for a low APR: DCU Visa Platinum secure credit card
The DCU Visa Platinum Secured Credit Card is a second chance credit card that offers variable APRs as low as 11.50%.
This card does not offer any rewards, but offers several other advantages, including the near zero fees and compatibility with mobile wallets like Apple Pay, Samsung Pay and Google Pay. However, a minimum security deposit of $ 500 is required to get this card, which is above average.
You must also be a member of Digital Federal Credit Union. You can join in various ways, for example if a family member is a member of DCU, if you reside in one of the many selected communities, or if you become a member of a partner organization for as little as $ 10.
To take with
It’s common to make financial mistakes that can impact your credit rating, but repeating them could make it worse. Fortunately, second chance credit cards can help you build your credit over time and maintain a healthier credit profile.
The information is correct as of October 15, 2021.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack Inc., an online marketing company serving leading banks, credit unions and other financial services organizations. Some of the businesses mentioned in this article may be customers of ConsumerTrack Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective and no institution, client or otherwise, is paid for specific inclusion or placement. Any opinions, analyzes, criticisms or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed or otherwise approved by the companies included in the article. All fees and rates are subject to change at the discretion of the issuers. Some interest rates may be short-term or promotional offers only, and additional conditions may need to be met in order to obtain the interest rates shown. Prices and availability may vary by region. Check the terms and conditions before opening an account.
GOBankingRates bases its assessment of “best†and “best†products on the aforementioned metrics to create a basis for comparison. This rating is an approximation of the “best†and “best†designed to help consumers find products that may be right for them. There might also be other options available. Consumers should consider a variety of options appropriate to their situation.
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