Comparing the Best Credit Cards for Bad Credit

Posted : August 12, 2017

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One way you can overcome having bad credit is by making regular credit card payments. We're looking at the best credit cards for bad credit to get started with.

Keyword(s): credit cards for bad credit

Bad credit can happen to the best of us.

In fact, it's estimated that 20.7 percent of Americans have credit scores under 600.

There are numerous ways to bring your numbers up, including making regular credit card payments. Not every card is a good fit for bad credit, however.

Here's how to find the best credit cards for bad credit.

Tips on Picking the Best Credit Cards for Bad Credit

Building a high credit score is essential. If you're applying for a personal loan or you need an influx of cash for your small business, your interest rates will be directly tied to your credit score.

If you're using a credit card to bring your score up, there are a few things you need to know to get the most bang for your buck.

Opt for Secured

If you're having trouble with your credit score, it's possible that you won't qualify for an unsecured credit card. That's okay! You can choose a secured card instead.

A secured credit card means that your credit account is backed up with cold, hard cash. In order to qualify, you'll have to put down a certain amount of money.

Usually, the amount of that deposit is directly tied to your card's credit limit.

Fees or Free?

Many secured cards tack annual fees on to the bill. Don't be fooled into thinking you don't have options.

Plenty of cards exist with no annual fees, so shop around for the best deal.

Financial Responsibility Is Its Own Reward

...But a few extra perks don't hurt. Just like you don't have to settle for a card with an annual fee, you may qualify for a card that includes other benefits.

Look for a percentage of cash back on your purchases.

Many secured cards will also let you earn the opportunity to upgrade to an unsecured card after you establish a good history.

Bank on It

You will probably need an active bank account for your credit card.

If you're among the 7 percent of Americans without a bank account, you still have options.

Search for a credit card that doesn't require banking information, just be aware that your upgrade options with these will probably be limited.

Know Your Limits

Think of this credit card as a tool to improve your credit score, not a way to spend more money.

Your credit limit on a secured card will probably start low.

It's important that you always spend within your credit limit or you could do further damage to your credit score in the long run.

Always Be on Time

Always know what you owe and when it's due.

If you see any unauthorized charges or billing errors on your account, sort them out quickly before they become larger problems.

Your credit score is directly tied to how timely your payments are, so make it a priority to pay off your monthly balance on time every time.

Ready to compare the best credit cards for bad credit? Visit MoneyBrag and get started.