bad credit cards

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A Guide to Credit Cards for Bad Credit No deposit

credit cards for bad credit
credit cards for bad credit

If you did not know, there are credit cards for bad credit with no deposit. With that being said, banks and other financial institutions such as lending companies give people a great deal by offering a chance to have a credit card despite the bad reputation.

The good thing is that it does not mean that you can no longer apply for a credit card and have your application approved.

Nevertheless, having poor credit does not necessarily mean that you are not allowed any financing options. You just have to keep an eye on your score, which you can check for free. Banks, government agencies, and other institutions dealing with finance routinely check credit scores for various reasons.

The terms and conditions and the rates and fees for these credit cards differ from one another. You can expect higher rates and strict rules for monthly dues payments.

Now the question is, how do you apply for the best credit cards for bad credit with no deposit? Read on to know more valuable information about it.

What is a Personal Credit Score?

A credit score, also called a FICO score, is one of the types developed by the Fair Isaac Corporation. Borrowers take help from it to understand the credit risk of lending to their customers. The ultimate users are the credit lenders, but nowadays, even employers keep a check on their employee’s credit standing.

How to Determine Your Credit Score’s Standing?

For you to be fully in charge of the state of your money matters, you have to get your credit report so you are aware of where you stand. This is crucial because the first thing the auto financiers will want to look at is your score to avoid people with bad credit.

You can check your credit score with your credit card givers or have a credit counselor discuss and explain your score to you.

Additionally, you can visit consumer credit reporting organizations and purchase your credit scores or even go to a website that calculates your score for free.

To know where your credit score stands, you can get an access copy of it on the main credit reporting bureaus. Knowing your credit score is necessary whenever you wish to inquire about a loan application and you talk about your financial needs.

All your inquiries and details regarding your credit score stance will be answered. So if you have a bad credit car dealerships history, your car loan can still be approved with the help of various financial institutions and credit unions.

With that being said, check the list underneath to understand how some banks consider your credit score. However, some lenders don’t prioritize checking your credit report.

  • 720+ relatively good personal credit score
  • 680+ good credit personal credit score
  • 640+ average credit personal credit score
  • 600+ slightly bad personal credit score
  • 580+ poor personal credit score
  • 525+ bad personal credit score
  • 480+ the worst personal credit score

To sum this up, a relatively good personal credit score ranges from 300 to 850. Having your score of 800+ is exceptional. 740 to 799 is a good score. 670 to 739 represents an average credit score.

On the contrary, a personal credit score ranging from 620 to 679 is considered the borderline score, 580 to 619 low credit score making 300 to 499 lousy credit score. Thus, the ones falling in this category will have to improve their credit standing by following the given measures to enhance their financial credibility.

Understanding the Implications of a Personal Bad Credit Score

Having a bad personal credit score has its implications, and side effects can affect the financial aspect of your life. If you have poor credit standing, do not worry; some of the mistakes can result in a low credit score b, ut it won’t affect you, as you can improve your credibility and get more credit from institutions.

Contributing Factors of a Bad Credit Score

Do not worry too much about it if you have poor credit standing. Tell you what, some of the mistakes can result in a low credit score, but it won’t affect you, as you can improve your credibility and get more credit from institutions.

So before you even start applying for a credit card, it helps you understand your current credit standing and the circumstances surrounding it to make better financial choices in the future.

  • One of the main problems of having a bad personal credit score is that loan applications and credit cards are much more expensive. Banks and other financial companies usually charge higher interest rates and annual percentage rates (APRs). This is to keep their business funds running and to keep the company’s operations up and about.
  • In terms of loan approval, there is a big chance that your loan or credit card application might be denied.
  • It can be tough for you to apply for a mortgage or even rent an apartment in some countries.
  •  A poor personal credit score can affect your employment opportunities in some cases or countries. How is that so? Well, remember that credit card unions and other financial companies have the power to file a lawsuit against you or sue you for the financial trouble you have caused to their company. Do not belittle this financial matter; the amount of debt you owe from a particular company has something to do with the case they have filed against you. The patient may not be bailable, especially if you owe hundreds and thousands of money from the company. A non-bailable chance means that you do not have the power to bail yourself (or any person in particular) out of jail. This means you are left with no choice but to serve and finish your sentence while you wait for the next court hearing, no matter how long it is. In addition to that, a bailable case is something that you can bail yourself out of jail from. However, this does not mean that the issue is closed, it is still pending, and you will have a criminal record that will affect your employment and other career opportunities. If you fail to attend a court hearing, the court will release a new warrant of arrest, and the authorities will look for you wherever you are; you cannot escape the law! If you do, you will be living in a hideout forever, and your case will remain in your record.

To know more about the contributing factors of a poor credit score that does not affect you as a credit card and loan applicant. Feel free to browse more of our informative blog posts here in Bridge Payday.

How to Improve Personal Credit Score?

You can start rebuilding and improving your credit score anytime. As long as you are committed to making the necessary changes and improvements, you can do it. It simply starts with discipline and the commitment to pay promptly.

Most credit card companies will deny your application if you do not know. But you will still find some financial companies that credit cards offer specifically for people with bad personal credit scores and poor credit reports.

The more your credit reports improve, the better the financing options, and you will save on the interest rate. While it is easier said than done, all you have to do is use your credit card responsibly to have a good credit rating.

 

Request for a copy of your Credit Report

What you need to do is to request a true certified copy of your credit report from your credit union or credit bureau.

With that being said, the primary step is to get your credit checked. You can get your credit reports requested from Equifax. Look for the best financial institutions and get your message read to see if you are right or need to improve it in just 30 days.

 

Seek Help from Financial Advisors and Moneylenders

Feel free to also ask questions from financial advisors about what you need to do to improve your credit score apart from paying promptly. These professionals or experts can also give you various recommendations on how you can be debt-free and attain financial freedom and stability.

You can hire a business analyst or approach them if you run your own business. Feel free to ask for advice and business-related questions so that your business will reach success and prevent potential bankruptcy.

 

Steps on to Rebuild your Credit Score

To maintain a perfect personal credit score is not always viable. Your credit score can be poor due to various genuine factors. You might be in financial distress due to an emergency, or you might not be able to repay your previously acquired loan amount due to your career downfall.

There are several valid reasons for not paying the debt and thus resulting in a poor credit history. With that being said, there are simple ways for you to improve your personal credit score history without much trouble. Without further delay, here are the steps to improve your credit score:

Correction of Errors

Rectify the mistakes made by recording late payments or defaults. Pick up your phone and get them rectified. Back yourself up by writing a letter making the same request to the top credit bureaus and bring to their notice the pending changes in your report. This will help you get a clear ground in the eyes of financial institutions who keep your financial accounts on the basis of which FICO is calculated.

Authorization of a User

Having low consumer credit, you can have members of your family with good credit standing upfront to help you out, as customers with poor credit usually pay higher interest rates and heavy annual percentage rates than those with a good FICO score. Therefore, if you add names of such members in your account, showing them to be authorized users, you can have better financing options in the future, maintaining your score.

Add to your Available Credit

Your credit history serves as a strong foundation when you plan to borrow. Knowing your available credit boosts lenders and confidence to finance more. Your finance options can be raised with the help of various financial institutions and credit unions.

Negotiation

Avoid getting your statement blemished by default in your payments. Negotiate and pay partial amounts to get away with the wrong impression on your account. The discussion leads to favors creditor might on your goodwill forgive your few late payments, which will help you long-term by improving your FICO score within a month.

Rationalize your Debts

You should divide your loans in a ratio that a creditor does not get suspicious about unsecured loans you have, or consumers can apply for debt consolidation loans to better manage and be better at the financial footing.

Payment Reminders

Making your payments on time is the most significant contribution to improving your score. To keep on improving, set up reminders and do not miss out on dates as it will negatively impact.

Cut Off Debts

The first thing to do is stop using your credit card, check on your accounts as to what interest rate you are being charged, and frame your budget on paying those as early as possible. This will eliminate your debt burden and will prove better for your credit image.

Avoid Additional Expenditures

As difficult as it might be, try to minimize extraneous expenditure in the time before you apply for the loan. Make payments on time. Do not make any significant purchases. Most importantly, do not apply for a new credit card offer.

Get A Pre-sanction

A pre-sanction from your bank or credit society will give you a figure from which you can work out other modalities. Contact the agency you have decided to get a loan and ask them for a pre-sanction letter. If they decline, your car dealer could help you contact an agent who deals in such matters.

Pay your Bills on Time

Keep your statements clear and keep your debts balanced. These are the keys to an excellent personal credit score. You must do your best to maintain a good credit rating and a clean credit history to get the best of scores. After all, credit reports with no financial discrepancies will no longer need to do the following steps above. With that being said, it is feasible to maintain your score.

 

Given the following pointers above, the only way to prove you can improve your free FICO credit score is by changing how you handle your finances. You should pay your bills on time, keep your credit card balance low, avoid taking big loans and avoid credit cards.

Qualifying for a credit card when your credit score is terrible means no late insurance, rent payments, and additional debts. Taking these steps will help you rebuild your credit before you set out to take a car loan and make you more marketable to auto loan givers.

 

Should you get a credit card?

Many people may think that getting a credit card will only cause drowning deep in debt. This will only be a problem if you allow mismanagement of finances. Even for people with poor credit, it is recommended that they apply for a credit card.

Contrary to that, some credit card companies offer a 2nd chance to clients with poor credit. The higher interest rates mean that these loans with bad credit are profitable. Make sure that you shop around for the best loan term to improve the FICO score (credit score that the Fair Isaac Corporation computes).

There is Hope for You

Just because you have a poor or low credit score does not mean that you will be rejected right away. There are companies that specialize in providing credit cards for people with bad credit.

If you can use a credit card wisely, you can use this opportunity to start repairing your credit and building your confidence once again. It may take some time and strong discipline on your part. But it is not impossible. That is why once you have a credit card, you need to make sure that you use it the right way.

Unsecured vs. Secured Credit Cards

Even if you have bad credit scores, it does not automatically disqualify you from getting a credit card. You can have a choice between obtaining an unsecured or a secured credit card. How do these two cards differ?

Secured Credit Cards

First off, a secured card means that you need to have a cash deposit before using the car. Most banks make use of the deposit as a credit line which you can use for your purchases.

For you to increase your credit limit, you can add more deposits. Many people might ask, how is this different from a prepaid MasterCard or Visa card? This type of card is other in the sense that the bank or the company that offers this card reports to the major credit bureaus.

Unsecured Credit Cards

The other type of card is known as the unsecured credit card. It is different from a secured card because it does not require the client to get collateral, also known as a co-signer, co-guarantor, or co-maker.

This only means that you don’t need to pay any deposit, and the credit limit that you can get is basically upon the lender’s assessment. They usually look at your payment records, credit score, and credit reports.

 

The question now is, which one would you choose – an unsecured credit card or a secured credit card? It depends if you have a credit limit and qualify for at least a manageable amount as your credit limit.

With that being said, we highly recommend you choose an unsecured credit card. This type of credit card generally has more affordable fees and can give you a higher credit limit.

Top 7 Best Credit Cards for People with Bad Credit – No Deposit Required!

Most financial companies offering secured credit cards also have perks that you don’t find with unsecured cards. Without further ado, listed below are some of the best credit cards when you have bad credit with no deposit:

       Journey Student Rewards FROM CAPITAL ONE

capital one
capital one

This card is a good choice for students who want to build their credit. The card is readily available to almost anyone. Even if you are not a student, you can still apply for a credit card. This card offers the following features:

  • You can earn 1% cash for your purchases. In addition, when you pay on time, it can go up to 1.25%.
  • The card is designed for students with limited credit.
  • When you make five consecutive payments on time, you can have e better credit line.
  • There is no annual fee.
  • There are no foreign transaction fees.
  • They offer an annual percentage rate of 26.99%.

         Credit One Bank Platinum Visa

credit one bank
credit one bank

Dubbed as one of the top choices that you can use to rebuild your credit, the Credit One Bank Platinum Visa is an unsecured credit card that allows a pre-qualification process without affecting your credit score. In getting this card, you can expect to have the following:

  • The application process is not that difficult. They allow you to have pre-qualification without negatively affecting your credit score.
  • This credit card enables you to start rebuilding your credit as they report to credit bureaus on a monthly basis.
  • When you pay on time, your credit line can increase in the long run. On top of that, you can also receive one percent cash back for specific purchases.
  • They also have features that allow you to make easy bill payments.

        Fingerhut Credit Card

fingerhut
fingerhut

The Fingerhut company was established 60 years ago, and over the years, they have been specializing in retail. Eventually, the company has ventured into stored credit cards. They have an unsecured card that allows you to track your credit and, at the same time, use it to purchase specific items. In getting this type of card, you can have the following:

  • The application process is not too strict. You will know if your application gets approval within the day.
  • The company reports to the three major credit bureaus, so you can use the card to start rebuilding your credit if you are paying your dues on time.
  • With the Fingerhut Credit Account, you can use this line of credit to purchase items from brands like Sam so, Dewalt, KitchenAid, and a whole lot more.
  • The only downside of this card is that it is not an access card.

         First Access Solid Black Visa

visa
visa

Another good option is the first access solid black Visa credit card. This card has been getting good reviews from people who have already used it. You don’t need to have a perfect credit score to get approval.

  • The company reports every month to the three major credit bureaus, which means you can use this card to improve your credit score.
  • Depending on your record, the application process is not that difficult. It is swift. You can also apply online.
  • Once your credit card application gets approved, you need to pay a processing fee to have the $300.00 credit limit.
  • This is a VISA credit card that you can use for online shopping.

       Total Visa

credit-card
credit-card

This credit card also gets good reviews. The only thing is that if you want to get a Total VISA credit card, you must have an active checking account.

  • Although this credit card requires you to have a checking account, you are likely to get approval anyway
  • This is a legit credit card you can use to make online purchases.
  • When your credit card application gets approval, you just need to pay the processing fee.
  • The company reports to the monthly to credit bureaus, so you can use this to increase your credit score and start rebuilding your credit.

       Net First Platinum

platinum visa
platinum visa

This credit card is specifically for people with the poorest personal credit score. You can have a $500 credit line by getting a Net First Platinum card. The annual percentage rate is 0%. Other features of this card include the following:

  • The approval process is quite fast. There is also no need for an employment/credit check.
  • The company reports to major credit bureaus, so you can use this credit card to start rebuilding your credit score.
  • You can also submit your application online.
  • Use the credit card to purchase items from merchants online.

       Milestone Mastercard

milestone®
milestone®

Even if you have poor credit, you can still apply for a credit card with the Milestone Mastercard. The annual percentage rate for this card is 23.9%, and you need to pay the yearly fee amounting to $35. Other details about this credit card include:

  • They offer a pre-qualification process, so you know if your application gets approved or not. With pre-qualification, it will not affect your credit score.
  • People with bad credit can still apply for this credit card.
  • You get to have a mobile account that enables you to access your account information at any time.
  • You have a fraud protection feature for the stolen card.
  • The automatic report which updates your credit history to the credit unions and bureaus, this feature makes it easier for you to start rebuilding your credit score.

Other Options for People with bad credit Scores

Should you consider a secured credit card? In cases where you are having a hard time getting an unsecured credit card, you might want to try to apply for a secured credit card. You just need to pay for the deposit.

But the good thing is that the promise you put down is your credit limit. Looking at it, getting a secured credit card is not bad after all. Here are some other credit card options that you can consider:

Capital OnE MASTERCARD

secured mastercard
secured MasterCard

This credit card is a good choice if you are looking for an unsecured credit card for bad credit, as it does not have an annual fee. You can also have the following features.

  • It is not a prepaid card since you can use this card to build your credit. As Capital One reports to the major credit bureaus, if you know how to use the card correctly, you can use it to increase your credit score.
  • There is no annual fee, so you never have to worry about additional costs.
  • When you make an initial security deposit, you get to have a line of credit amounting to $200. However, it is essential to note that you get will depend on creditworthiness.
  • You can easily manage your online account 24/7.
  • Any automated teller machine that accepts Mastercard honors this credit card
  • After five months of continuous on-time payments, you can have a more extensive credit line.
  • The annual percentage rate is 24.99%.

First Progress Platinum Elite MasterCard Secured Debit Card

credit card for bad credit
credit card for bad credit
  • The application process is easy.
  • You can use your tax refund to fund your credit card.
  • With their expedited processing option, getting your card is quite fast.
  • The company does not require a minimum personal credit score upon applying
  • They report to major credit bureaus.
  • You can have 24/7 access to your account online.

Applying for a Better Credit Card with no deposit

You will notice that you will have the opportunity to increase your credit limit in most companies. Some may also allow you to change your credit card and get that card where you can enjoy certain perks and rewards. However, your goal is to have a better credit card that will not require you to pay higher fees.

How Long Does it Take to Improve a Credit Score?

The time it will take to increase your credit score depends on several factors. There is also no specific number of days where you can be sure that your credit score will improve. Again, it is about how often you use your credit card and deal with transactions. If you are using your credit card and making on-time payments, then it will take a few months for you to see significant changes.

After a year, if you are consistent with your payments, you can see significant changes. From here, you can start applying for other credit cards that may offer you better terms and conditions, deals, and even reward programs.

Having your credit card is still a handy tool. When used responsibly, you never have to worry about your mode of payment. On top of that, you can also monitor your expenses and establish your credit. In the end, it is just a matter of being financially responsible in how you handle your finances.

Conclusion

bad credit credit cards no deposit
bad credit credit cards no deposit

A poor credit score puts you in a difficult position simply because you don’t have access to various credit options that will give you affordable fees and the best terms you could get.

That is why you must be able to get either a secured or unsecured credit card. You need to manage your finances well.

These allow you to start rebuilding your credit score so that, in the long run, you are in a better financial position.

With good credit standing, you have access to several credit options and never have to worry about costly interest rates.

 

Senior Personal Finance Writer at Bridgepayday | Website | + posts

A writer and editor for over a decade on finance for national technical and consumer readers, Julia Kagan is the editor in the past for Consumer Reports and Psychology Today. Her experience editing business books includes serving as the charts editor for Ahead of the Curve: A Commonsense Guide to Forecasting Market and Business Cycles written by Joseph H. Ellis (Harvard Business School Press 2005) as well as editing The Trial of a Social Security Disability Case by Marvin Schwartz (The Social Security Disability Foundation 1983).

Author: Julia Kagan

A writer and editor for over a decade on finance for national technical and consumer readers, Julia Kagan is the editor in the past for Consumer Reports and Psychology Today. Her experience editing business books includes serving as the charts editor for Ahead of the Curve: A Commonsense Guide to Forecasting Market and Business Cycles written by Joseph H. Ellis (Harvard Business School Press 2005) as well as editing The Trial of a Social Security Disability Case by Marvin Schwartz (The Social Security Disability Foundation 1983).