If you have a bad credit score rating, then you know how hard it is to get approved for a credit card. A FICO credit score rating has a range that can be anywhere from 300 to 850. Different credit companies have varying standards for what a, "bad," credit score is. Generally speaking, if your current FICO credit score rating is anything below 580, then you have a bad credit score.
It is important to have a good credit history and a good, or better, credit score to effectively manage most financial dealings life. Your credit score will be a determining factor in exactly how much interest you pay for such things like:
- Mortgage Approval and Rates
- Personal Loans
- Automobile Loans or Lease
- Credit Card Interest Rates
Bad credit scores can result in you being rejected for various loan opportunities that you may need for personal life advancement. However, there are many credit card companies that will approve applicants with bad credit. They may offer you a secured card via security deposit, specialize in credit rebuilding or offer $0 fees for an extended period to encourage you to charge more responsibly.
Easy Approval Credit Card Criteria
The realm of credit scores, credit score issuing and the industry-wide consensus concerning what a bad credit score is can be confusing. You might have a bad credit score, or three credit scores, and not know it. A bad credit score could be viewed as anything under 600 by one company or anything under 500 by another. It helps to know that you could officially have three different credit scores. Credit scores are issued by credit score issuing bureaus like FICO or VantageScore 3.0. FICO credit scores range from 300 to 850.
Formerly, VantageScore 2.0 credit scores ranged from 501 to 990. Current VantageScore 3.0 credit score ranges, unlike earlier versions, are now from 300 to 850 to operationally synch better with widely accepted industry credit score issuing standards. Confused yet? The point is that a three-digit number that is judged as a, "bad," credit score is assigned as such according to metrics set and decided by the credit card issuer. Now that we got through that, let's check out some credit card companies that offer quick approval, rewards benefits and $0 or reduced fees to applicants with bad credit.
Credit One Bank® Unsecured Platinum Visa
This is an unsecured credit card that approves applicants with bad credit and offers rewards benefits. Initial credit limits of $1,500 are possible according to your qualifications. Usage of this card is reported to all three credit score monitoring bureaus which will help you rebuild your credit score quicker with responsible use.
- $0 to $99 annual fee based on credit history
- 16.99% to 24.99% APR based on credit history
- 24.15% APR penalty fee
- 1% cash back rewards benefits for most charged purchases
- 60-second pre-application process that won't affect your credit rating
The annual fee that you qualify for with this card will be taken out of your available credit limit. If your annual fee is $60 and your credit limit is $400, then your new credit limit will be $340 after the annual fee is deducted.
U.S. Bank Secured Visa Card
You can be approved with bad credit and this card has a relatively low annual fee. The activation of this card requires a security deposit. You have the option to pay for your security deposit in several ways. The security deposit can be paid via electronic transfer of funds from a checking or savings account. Or you can print out the online application and mail it with a cashier's check or money order.
- $29 annual fee
- 19.99% APR
- No late penalty APR
- Minimum $2 interest charge, when applicable
- Security deposit amount of $300 to $5,000 payable on in $100 amount increments
- You can set your own due date and automatic billing schedule
If you use this card responsibly after several months, U. S. Bank may upgrade it into an unsecured card. Remember that there are always varying standards between credit card companies when it comes to the definition of, "bad," credit. Of course, having a bad credit score greatly reduces your approval chances. However, for all the credit card companies that reject your application, there will be others that view your application, and credit score, as an acceptable risk.
Capital One Secured Mastercard
You can be easily approved for this card with a bad credit score. How much you pay as a security deposit will be ultimately determined by your credit history during the application process.
- $0 annual fee
- 24.99% APR
- 0% foreign transaction fee charges
- Your initial credit line will be $200, based on a $49, $99 or $200 security deposit fee decided by your credit history
- Credit limits up to $3,000
Although the APR is a bit on the high side, this is a great card for credit rebuilding purposes with no annual fee. Your charge history will be reported to all major credit score monitoring bureaus, which will only help you gradually rebuild your credit.