Once your credit score slips into the poor or bad credit category — below 650 — consider getting a credit card that’s designed to help you rebuild your credit. Sometimes, this means you’ll have to get a secured card. With these cards, you deposit an amount of money in a bank account and this “secures” the card.
Let’s face it. You might qualify for a credit card, but you could get stuck with a 24 percent (V) APR (or much higher). Sometimes, it’s best to spend some time focusing on fixing your credit. Once your score climbs, your options — and APRs — will only get better.
Here are some examples of good credit cards for rebuilding credit:
OPEN SKY Secured Visa® Credit Card. The Open Sky Secured Visa card reports to all three major credit bureaus. So here’s the plan: If you use this card, pay off your balance in full every month. And pay it on time. No exceptions!
The issuer is Public Savings Bank. There’s a $50 annual fee, but that’s your only upfront cost. This card doesn’t have a monthly maintenance fee or a processing fee, like many secured cards do. You’ll get a 14.25 (V) APR on purchases. Credit limits are from $200 to $3,000.
Capital One Secured MasterCard. This secured card features a reasonable $29 annual fee and will report payments to the major credit bureaus. Cardholders may also receive a credit line increase as their credit improves. This card has a standard interest rate of 22.9% and a 25-day grace period.
First Progress Platinum Prestige MasterCard. This card’s $44 annual fee is a little high, but its 11.99% APR standard interest rate is quite low for a secured card. There is a 25-day grace period for this card. Cardholders must make a deposit of at least $300 but it is held in an interest-bearing account.
Capital One Cash Rewards For Newcomers. Those with few negatives on their credit report but a limited credit history should consider this card. It has no annual fee, but a 24.9% APR standard interest rate. In addition, cardholders earn 2% cash back on travel purchases and 1% back on all other transactions.
Do your homework! Research and compare more credit cards for rebuilding credit.
At publishing time, OPEN SKY Secured Visa® Credit Card, Capital One Secured MasterCard, First Progress Platinum Prestige MasterCard and Capital One Cash Rewards For Newcomers is offered on Credit.com product pages and Credit.com may be compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.
Beverly Blair Harzog A consumer advocate, Beverly focuses on credit card issues and provides insight about current news that affects the credit card industry and consumers. She's a nationally recognized expert on credit card issues and is also the co-author of The Complete Idiot's Guide to Person-to-Person Lending. Visit Beverly at BeverlyHarzog.com.
{ 46 comments… add a comment }
Can you apply for the Citi card online?. When i clicked on it i got sent a word doc.
Hi Glen–you can complete the application online, but then you have to print it, sign it, and then mail it to Citi with a check or money order for the amount of your deposit. This is an excellent secured card, by the way. Nice you get to earn a little interest on a CD!
I need help getting my bills consolidated.
I want to build my credit score. I need a credit card that going to fit me.
The Open Sky visa is a ploy to get you to credit.com. I clicked on the card, the links and even searched online and it takes you to credit.com, not the application for the sky visa.
Monica–Looks like the Open Sky card is no longer available so I apologize for the inconvenience. I looked at this card last February. Take a look at the Orchard Bank cards and the Citi Secured card. They’re both very good cards for rebuilding credit.
I was just told by Citibank that because I have a closed account I am not eligible for a lower APR Rate. More bank B.S.!!!
On most of these credit cards….Do they have the 14 day rule with the notification of their rate increase due to payment that is due within your or the overall billing cycle?
These cards are all a joke I’ve learned if I can’t pay for what I want with cash I don’t need it.
Hi Beverly,
I appreciate you exploring the credit restoration topic and offering your perspectives. There are millions of people (like me) who can benefit from assistance from helpful and informed persons such as you.
Tom
i have a problem when i have my credit checked in order to quailify whick causes my criedit score to go even futher down. that’s not fair if i’m tring to rebuild my credit.
Thanks for giving me another change 2 try 2 get a credit card with my bad credit
i am in the process of rebuilding my credit and raising my credit score i now know the importance of good credit i would like a chance with this card to rebuild my credit and credit score
I need for someone to take a chance on me so i can restore my credit.
I AM IN THE PROCESS OF BECOMING DEBT FREE, I WOULD LIKE TO HAVE A CREDIT CARD FOR EMERGENCY’S THAT MAY ARISE
I am applying for this credit card for the sole purpose of using it only in the case of a totally unexpected emergency. This card will not be used for things that I want, and cannot afford.
i want to get an unsercured credit so that i can use it when i need to .plus i want to build my credit
i want to know the best credit card to get i want an unsecured one.i want so i can build my credit for my future
Hey My credit is a 460 I’m trying to find a credit card to rebuild my credit I’m a full time job and everything It’s new credit card build my credit what would be the best one to get
my husband was very sick when he passed and there are a lot of doc bills that has really klled my credit i want a house agian and rebuild my credit
want a home
please any advice
I need a card that doesn’t have a high limit so that I can rebuild my credit it is in the 300′s. Beverly Blair Harzog is there any way that you can help me to get a card so i can rebuild my credit that isnt going to cost me a arm and a leg?
Im planning to but a house .and I was told I was in great need to repair my credit.I need some one to tell me how to repair my credit.and to rebus.please help.
yes can you sen me info on these cards
I am looking for a credit card so I can use to pay off some bills that need to get payed right away. My credit is kind of bad but I would like to have a second chance to see if I can get a credit card to help me out. So is there anyway you can help me find one that is good for me let me know okey please.
Call me please…….
where is the grant approval network? I”ve already got my credit score and know my situation concerning a credit card.What about finding grant money? I just signed up for a free trial…Hmmm
l dont have a credit card to pay the 1.00 to get a credit report so i dont know my credit rating report need help wanting to get unsecured credit card my credit is not good but i dont know how bad it is please help reastablish my credit again,any unsecurd,at any percent i gamed if you are wont let you down. Please help. Thank you!
Mark – You can get your credit report for free once a year from http://www.annualcreditreport.com. They won’t ask you for a credit card as long as you’re only claiming your annual freebie. If you select the option to add a credit score, you’ll need a credit card to pay for that part.
For help on rebuilding your credit, here are several resources that will help provide a better understanding of how improve your credit and what you need to do before you apply for a credit card:
• Rebuilding Your Credit
• Becoming An Authorized User On Someone Else’s Credit Card to Improve Your Credit Score
• A Secured Card Can Help You Rebuild Your Credit
• The First Thing to Do Before Applying for a Credit Card
If your credit is poor and you’re trying to determine which card to apply for, you can also use Credit.com’s credit card comparison feature for credit cards for poor credit here: http://www.credit.com/credit-cards/bad-credit/.
I REALLY NEED HELP IN REBUILDING MY CREDIT
i need a credit card bad
I need a credit card like yesterday please help.
I have a score of 576 can u help me
I need to bulid my credit score to buy and get a home loan
My credit score is 450,I have 2 credit cards,I’m trying to build up my credit score. What can I do to do so.Help.
i have a bad credit record and would like to rebuild it so i can buy a home for my 3 girls
i am based in South Africa. is this available to me
I don’t understand, if I allready had a credit card I woul d not need to applie foe a credit card. Because I would have allredy would have had one so how can I get one without having. A credit card .the only account I have is my savings account. What can I do, im desprit ..thanks …
Why want this card. You already have a secured card at your local bank.
my credit score is about 417 how can I get a credit card without having to pay an annual fee.
Hi Charity- Unfortunately, with a score of 417 you probably won’t be able to qualify for much of anything until it improves. One option to consider is starting with a secured card: http://www.credit.com/credit-cards/secured/.
The good news is that there are a number of secured cards on the market that don’t carry annual fees. The downside, however, is that in order to obtain a secured card you’ll have to pay a cash deposit up front. They’ll be reported just like a regular credit card and if you manage it properly by keeping your payments on time and keep the balance as low as possible, the card can help you gradually rebuild your score. Here are a few resources on rebuilding your credit and how secured cards can help:
How Fast Can You Rebuild Your Credit? http://blog.credit.com/2013/02/how-fast-can-you-rebuild-your-credit/
11 Tips to Rebuild Your Credit: http://blog.credit.com/2012/11/11-credit-repair-tips-to-fix-your-credit/
The 411 On Secured Cards: http://blog.credit.com/2012/08/the-411-on-secured-credit-cards/
5 Common Secured Card Myths: http://blog.credit.com/2013/01/5-secured-card-myths/
Would Like to apply for a credit rebuilding card
i would like to get my scores better then they are one is a 540 and the other is 420 and i don’t have the third score i have it thank you
Hi George — The first place to start is to find out what’s causing your scores to be low. All credit scores are returned with reason codes or score factors that explain where you lost the most points in your credit scores. This will help you pinpoint where you need to focus in order to improve your scores. To find out more about improving your credit scores, here are two great resources:
• Rebuilding Your Credit
• 11 Tips to Rebuild Your Credit
My credit score is 590, not too bad yet not too good. I am still having trouble with getting a credit line established. I am self-employed and a credit card could help with the business expenses. Can you please tell me how I can get my score up so I can get approved for a credit card.
Kimberly– The first place to start is to find out what’s causing your scores to be low. All credit scores are returned with reason codes or score factors that explain where you lost the most points in your credit scores. This will help you pinpoint where you need to focus in order to improve your scores. To find out more about improving your credit scores, here are two great resources:
• Rebuilding Your Credit
• 11 Tips to Rebuild Your Credit
If you’re suffering from low credit scores and are considering a credit card to rebuild, a secured card might be an option to consider.
A few more resources that you may find helpful:
• A Secured Card Can Help You Rebuild Your Credit
• The First Thing to Do Before Applying for a Credit Card