If you have bad credit, or none at all, it can be difficult to find the right credit card. But you should use a credit card (if you trust yourself to be careful with it) to improve your credit score, and for the convenience of having one.
Financial services firm WalletHub worked out a list of which credit cards are best for different situations, including ones designed for people with bad credit or no credit.
No Credit
If the issue is simply that your credit history is limited, WalletHub recommends the Capital One Platinum Credit Card. This card has fraud protection and no annual fee. After five months of making monthly payments on time, users get access to a higher credit line.
Bad Credit
If your credit history is spotty, WalletHub’s pick is the Discover It Secured Credit Card. It has no annual fee and even offers some rewards points. This card requires a security deposit of at least $200 to help establish credit. The deposit will be refunded when you switch to an unsecured credit card.
Secured cards like this one are a good option for newcomers or those with low credit scores. The credit line on these accounts usually match the amount you put down as a security deposit. That doesn’t make it a debit card: Money doesn’t deduct automatically from an account when you use it. You still have to make monthly payments.
As I mentioned, you need to feel comfortable that you won’t go into the red, and that you will be able to pay off your bill in full every month. Then, using a secured card will allow you build credit and eventually transition over to a traditional, unsecured card.
Peter Blinn
For over 35 years, listening to clients and putting them at ease, while finding solutions and helping achieve future goals, in Marion County, Lake County. Citrus County, Sumter County, and The Villages.
