If your credit score is suffering, it can be difficult to be approved for a credit card. And not having
a credit card can make life very inconvenient, with more and more places going cashless. Not to
mention the ease of ordering goods and services online.
The good news is that there are specific credit card products available for those with poor credit.
Even better is that some of them have no annual fee. If you’re searching for a credit card, these
are some of the easiest secured credit cards to get approved for.
Secured Credit Cards
A secured credit card operates a little differently than a typical card. With a secured card, you
actually have to make a cash deposit before you’re issued the credit card. That deposit will
equal your credit limit, and be used to pay off the balance if you fail to make payments on time.
The point of a secured credit card is to prove to the financial institution that you are worthy of a
normal credit card – where you can charge purchases and pay for them later, but without a cash
security deposit.
Secured credit cards are great for those with bad or no credit, as it allows them to build their
credit history with a minimal deposit. After a short period of time, you will get your security
deposit back (with interest) and be able to upgrade to a standard credit card.
Discover it Secured
The Discover it Secured card will accept people with credit scores as low as 350. And that’s
about as low as they get. There’s no annual fee, but you’ll need to make a minimum deposit of
$200 to secure your balance. The card comes with a standard 25.24% variable APR. After
seven months, Discover will automatically review your account to see if you qualify for an
unsecured card instead.
This card offers a bare-bones reward program. You’ll get 2% cash back on gas and restaurants
(up to $1,000 in purchases every quarter). You’ll get 1% back on every other purchase. These
rewards don’t compare to some of the more generous credit card rewards programs out there,
but they are pretty good for a secured credit card with no annual fees.
BankAmericard Secured Credit Card
The BankAmericard Secured Card has similar terms to the Discover it card. The 25.24%
variable APR is exactly the same. Although the minimum secured deposit is slightly higher at
$300. You can also upgrade to a secured card after a short period of paying on time.
Unfortunately, this card doesn’t offer any rewards program of any kind. On the other hand, it
does come with a free annual FICO score report – handy for anyone trying to build or repair
their bad credit.
Indigo Mastercard for Less Than Perfect Credit
The Indigo Mastercard for Less Than Perfect Credit is actually not a secured credit card. It
offers smaller limits (minimum $300) for those with bad credit. However, it does have a sliding
annual fee between $0 and $99. If you qualify for the $0 annual fee, you’re all set. But maybe
think twice if they try to charge you $100 a year.
As for the details, it’s a pretty standard card for those with poor credit. It has a 24.9% APR, $0 in
one-time set-up fees, and approves most applicants. However, it doesn’t include any rewards
program and might charge you an annual fee (unlike the other cards on this list).
Still, the Indigo Mastercard for Less Than Perfect Credit is a useful card for those trying to build
up their credit, but don’t have the cash to make a security deposit on a secured card.
Rewards Secured
The nRewards Secured Credit Card is a terrific secured card with one huge catch. In order to
qualify, you must have a Navy Federal Credit Union membership. If you do, though, then you’re
in luck. This secured credit card offers a more attractive 18% variable APR, no annual fee, and
only $200 as a minimum deposit.
As long as you meet the requirements, the nRewards card is a great option for those with bad
credit (or even no credit history at all). Like other secured cards, it offers an eventual upgrade to
an unsecured card. Despite the branding, the nRewards Secured credit card doesn’t offer a
rewards program.
Citi Secured Mastercard
Finally, the Citi Secured Mastercard is another fine choice for a secured credit card. There’s no
annual fee and you can make anywhere from a $200 to a $2,500 security deposit to get your
credit rolling.
The interest rate is a 25.49% variable APR, which is in line with other similar products. After 18
months of responsible credit card use, you may be eligible to upgrade to a secured card. This
card does, however, have a fairly high fee for cash advances or foreign transactions. You also
won’t be eligible if you’ve filed for bankruptcy in the past 24 months.
