Having bad credit will stop you from obtaining most credit card offers, but it won’t stop you from all. Certain credit card companies cater to those who have had a bad streak and fell behind on payments or have had repossessions or foreclosures. There are different types of secured credit cards for those with bad credit and it’s more important than ever to read the fine print to know which ones can help you rebuild your credit and which ones won’t but have other benefits for you to take advantage of.
Capital One Secured MasterCard
Capital One is willing to work with those who have bad credit with this credit card. Once you’re approved, Capital One will determine how much of a deposit will be required for your account and will give you a credit line of up to $200, and reports to all three major credit bureaus. The interest rate is 24.99%, but this is competitive with similar type credit card offers because they are willing to take a chance on you, and there are no annual fees for this card.
USAA Secured Card Platinum Visa
This particular card is only available to open U.S. military members, eligible veterans and certain family members. It offers benefits that other cards will find hard to compete with. When you open a line of credit, your security deposit won’t just go to the credit card company. They’ll use it to invest in a two-year $250 Certificate of Deposit (CD) that earns interest and grows while you’re rebuilding your credit.
OpenSky Secured Visa Credit Card
There is no credit check at all when you apply for an OpenSky credit card and you can determine your credit limit by submitting a deposit as low as $200 or as much as $3,000. Unlike most secured credit cards, no checking account is required and they report to all three major credit bureaus. There is a $35 annual fee, but with one less credit inquiry to ding your credit score, the fee may be worth it, especially since you can increase your credit line any time you’d like by sending in additional funds to boost your security deposit.
NetSpend Prepaid MasterCard
The Netspend Prepaid MasterCard is unlike anything from above. This prepaid credit card allows you to have your paychecks directly deposited onto it unlike the others. It works similar to that of an ATM card but still gives you the MasterCard logo so you can use it just like a credit card, allowing you to make online purchases and charge purchases to it. There is a $9.95 monthly user charge, but this is beneficial to those who cannot have a traditional checking account due to bank garnishments and for those who have passed too many bad checks, preventing them from opening new accounts with banks. With more companies requiring direct deposit, this can help a great deal of consumers. The downfall is that NetSpend does NOT report to all three credit bureaus.