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Best Credit Cards for Bad Credit in 2023:
- Discover it® Secured Credit Card. Secured
- Secured Mastercard® from Capital One. No Annual Fee
- Credit One Bank® Visa® Credit Card. No Deposit
- OpenSky® Secured Visa® Credit Card. Bad or No Credit
- Mastercard® from Capital One. No Annual Fee
- Applied Bank® Secured Visa® Gold Preferred® Credit Card
- The First Progress Platinum Prestige Mastercard® Secured Credit Card
See below to find out more about these credit cards for bad credit as well as understand what a secured credit card is.
What Is A Secured Credit Card?
A secured credit card as the name implies is secured by a refundable security deposit. The amount that you put down as your security deposit becomes your credit limit. This amount is used as collateral. Secured cards are great for people that have poor or challenged credit because approval is almost 100% guaranteed
Your credit line is the amount that you put down. If you were to put down $1,500, then your credit card limit would be $1,500. Most secured lenders enable you to transition to a normal unsecured card, once you show on-time payments and good usage over a period of time.
How Does A Secured Credit Card Work?
A secured credit acts just like a traditional credit card. You can use your secured credit card in the same manner as you would use any credit card. The card will not indicate that it is secured to anyone accepting it, and it does not reflect secured on your credit report.
Using a secured credit card is a great way to begin rebuilding your credit. Make sure that you make on-time payments. Remember that you are working on rebuilding your credit.
Your credit card may come with an annual fee and higher interest rates
Your credit cards are periodically reviewed to ensure that you are making your payments. If you continue to make your payments on time, most secured cards can be converted over to unsecured cards.
Top Secured Credit Cards
The First Progress Platinum Select Mastercard® Secured Credit Card
The First Progress Platinum Select Mastercard® Secured Credit Card is just like any other credit card. Use it at all of your favorite spots, including grocery stores, gas stations, and online!
Low Annual Fee
$39 for the annual fee. Pay off your balance and you can get your security deposit back at any time.
Credit Line up to $2,000
Pros
- Earn 1% Cash Back Rewards on payments made to your First Progress Secured credit card account.
- No minimum credit history or credit score required!
- Imagine being rewarded for simply paying your bill each month.
- Accepted wherever Mastercard® is accepted, online and worldwide!
- Reports to all 3 major credit bureaus
- Manage your statements, transactions & rewards on-the-go with the First Progress Card Mobile App!
Applied Bank® Secured Visa® Gold Preferred® Credit Card
The Applied Bank® Secured Visa® Gold Preferred® Credit Card can be used at all of your favorite locations including grocery stores, gas stations, discount stores, ATMs, and online!
Low Fixed Interest Rate
Low 9.99% fixed APR with NO Application Fee and NO Penalty Rate
Refundable Security Deposit Security Deposit, Minimum $200, Maximum $1,000.
How to Get a Credit Card with Bad Credit:
- Catch up on late payments. You can not expect approval on a new card when you have recent late payments. It’s time to do better and get your financial health in order.
- Research and Compare Fees. You are already in a financial pickle to begin with. Do not look at cards with high annual fees. Make sure you find a card that either has no fee or a low fee. Make sure that you pay your bill on time.
- Secured Cards are your best option. Secured cards are the best way to go when you are looking to obtain a credit card with bad credit. You have a better chance of being approved since you are putting down a security deposit. If you don’t pay, they will keep your deposit to offset what you may owe.
About The Author
Marvette Critney
Marvette Critney is a Real Estate Broker in Metro Atlanta, GA, a Credit Expert, and the founder of 750 Credit Score Blog Resource Site, and the well-known blog site Brag Differently. Her credit advice and knowledge have helped hundreds to become homeowners. She is recognized as a leader in her field. Read more.