We know having an excellent credit score is necessary, but how do we get it in the first place? Here are some great options that will allow you to build a solid credit record.
There are many reasons why having a good to excellent credit score is necessary. Whether you need a loan, or you want to rent an apartment, a lot of people will check your credit score to base their decisions. Actually, having a good history will also make you qualify for better credit cards, with lower interest rates.
During 2019, 12% of Americans had a FICO score below 550, which is a low score. Thankfully, there are some good credit cards for bad credit score holders. Here are some of the best options:
OpenSky Secured Visa Credit Card
This is ideal for those who can afford to put a deposit on a secured card that offers a low APR rate and a low annual fee, as well as every other benefit of a Visa card. This card doesn’t do a credit check when you apply, so this won’t affect your score.
However, there are a few things to consider. For example, the fact that they charge a 3% fee for foreign transactions. Also, there is a $35 annual fee that even if it’s low, a lot of other options don’t charge at all.
If you qualify, you can deposit up to $3,000 to have some flexibility when making purchases and reduce your credit utilization.
Credit One Bank Visa Credit Card
This card offers some of the perks associated with premier cards, like 1% cashback on purchases and services. If you pay your balance in full each month, it is an inexpensive card to have.
One thing to consider, though, is that the APR is variable and it ranges from 17.99% to 23.99%, so not paying your balance in full is really costly.
Another thing worth noting is that there is a charge of at least $5 on each cash advance.
Anyway, this is a great option for those who are trying to rebuild their credit score. You can check if you pre-qualify without harming your score, as they will perform a soft inquiry.
Credit One Bank Unsecured Visa with Cash Back Rewards
These cards offer similar perks as the one mentioned before, but you will also get a rental car collision damage waiver insurance and travel accident coverage.
If you are considering this card as an option, you should keep in mind that the minimum payment is 5% of the account balance, as opposed to the 1% to 3% on other similar cards. The main downside is that many cardholders are reporting billing issues.