Establishing a credit history is a necessity. It allows you to be able to qualify for a credit card and is important in other ways as well: having credit enables you to make large purchases that affect your everyday life, such as a car or home. In addition, your credit can even determine whether or not you are a good candidate for a job. However, when you have poor to fair credit, you are limited as to the credit cards for which you can apply. Here are the best cards for individuals who have poor to fair credit.
The Credit One Bank Unsecured Visa Card is perhaps the best credit card for people with poor credit who wish to improve or rebuild their credit. It is also good for consumers who are new to credit and wish to grow their credit. When you use this card, usage is reported to all three major credit bureaus — Equifax, Experian and TransUnion. There is a regular APR of 15.65 to 24.15 percent, with an introductory zero percentage balance transfers rate into APR. There is an annual fee of zero to $99 with the card, which is fully functional in spite of being unsecured. You can even earn up to one percent cash back whenever you purchase groceries or gas.
The Chase Slate Visa Card carries a regular APR rate of 13.24 to 23.24 percent. It is recommended for individuals with fair credit and carries a zero percent APR for the initial 15 months. Balance transfers into APR also have a zero percent rate for the first 15 months of having the card. There is no annual fee and a no-penalty APR, which means that if you pay late, you won’t see your interest rate increase. With this credit card, you can easily increase your fair credit to good or even excellent status.
The USAA Secured Card Platinum Visa card is good for people with bad credit. However, it should be noted that this particular credit card is only open to individuals who are United States military services members or veterans who received an honorable discharge and their family members. Upon applying for the card, you will get a two-year Certificate of Deposit and a minimum deposit of $250. The CD is essentially your credit limit, meaning you control how much you spend. The card carries a regular APR of between 10.15 to 20.15 percent and an annual fee of $35.
The Discover it Secured Credit Card is excellent for consumers who are new to credit or who already have fair credit. There is a regular APR of 23.24 percent and balance transfers into APR is 10.99 percent for six months. At the same time, there is no annual fee and you can earn two percent cash back when you use the credit card to pay for meals at restaurants and when making purchases at gas stations. Additionally, you can get one percent cash back on all other purchases. There are no late fees on your first late payment and you will not have your APR increased after a late payment. Perhaps the best aspect of the Discover it Secured Credit Card is that you will receive email alerts and text reminders, as well as access to customer service on a 24/7 basis. You can also get your FICO Credit Score completely free online and on your monthly statements.