Platinum Mastercard From Capital One
The Platinum Mastercard® from Capital One is a rarity: an unsecured card for fair credit that has no annual fee. It doesnt offer rewards, but it does have the standard set of Capital One and Mastercard perks, including $0 fraud liability and an easy-to-use mobile app.
- Make the first six bill payments on time to be considered for a higher credit limit
- Unsecured card reports to all three credit bureaus
- Pay $0 annual fee
Although starter cards like this arent known for their high credit limits, Capital One does offer the option to boost your credit limit if you make your first six payments on time. The card also comes with access to free credit score tracking to help you keep an eye on your progress.
Keep Your Balances Low
Keeping your balances low on your credit cards can help your credit utilization rate, or how much of your available credit youre using at any given time.
The usual advice is to keep your balance below 30% of your limit. Thats a good rule of thumb and a nice round number to commit to memory. But if you can manage to keep your utilization rate lower than 30%, thats even better.
Theres no credit-building benefit to carrying a balance on your cards if you can afford to pay off the full balance each billing cycle. When it comes to credit-building strategies, its best to make consistent charges to the account while keeping the total amount owed under 30% of your credit limit. If you can, pay your statement balance off in full and on time each month so you arent charged interest on those purchases.
Why Your Credit Score Matters
There are real benefits to staying on top of your credit score.
Thats because a strong credit score can translate into real perks, like access to a wider range of products and services including loans, credit cards and mortgages. You could also enjoy better interest rates and more generous credit limits. Meanwhile, if your credit score isnt quite where you want it to be, knowing the score is the first step to improving it.
Either way, it pays to know your credit score. Its your financial footprint the way companies decide how financially reliable you are. A higher credit score means lenders see you as lower risk.
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Freedom Gold Credit Card
If your credit score is around 500 or lower or even if you don’t have credit, don’t worry! the Freedom Gold Credit Card neither requires credit nor employment checks. Their application process is easy and fast, though, Freedom gold offers a $750 merchandise credit line that can only be used to shop online at TheHorizonOutlet.com.
You’ll have instant access to your $750 credit line after approval along with other benefits like: credit report monitoring, roadside protection, identity theft insurance, among others. However, you will need at least one active debit card to pay your freedom gold account fees.
Is A Credit Score Of 600 To 650 A Good Score
These days, you can get a free credit score from nearly every major credit card issuer and from dozens of third-party websites and mobile apps. But, all the numbers in the world wont do you a lick of good if you dont actually know what they mean.
To know where your score stands in the overall scheme of things, you need to know more about which scoring model was used to generate it. While creditors can use any number of the dozens of scoring models out there or even their own internal models most credit scores come from either FICO or VantageScore.
The most popular FICO credit score youll encounter is currently the FICO® Score 8, and the most common iteration of the VantageScore is the VantageScore 3.0. The nice part of these two types of scores is that they both have the same scoring range namely, each model operates on a range of 300 to 850, with 850 being the best possible score.
At a quick look, having a credit score of 600 to 650 out of a possible 850 may seem like youre doing OK after all, 600 / 850 = 71%, and that would have gotten you a passing grade of C in school, right?
Sort of. The general cutoff for good or prime credit is the 670 mark. A credit score in the 600 range will often be considered nonprime as in, its not a prime score, but its not a subprime score, either. In other words, your credit score is still considered to be risky, just not as high risk as someone with a score below 580.
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How To Get The Best From Credit Cards For A Credit Score Of 450
The purpose of a second chance credit card is to help you start afresh. Keep a close watch on your due payments, and always make timely payments. Setting up auto-pay with your checking account can help you avoid late payments. You should also avoid balances on your account even if the card offers that option as it comes with high-interest rates.
What Is The Easiest Credit Card To Get With Bad Credit
The easiest card for a subprime borrower will be either a secured credit card or an unsecured card marketed to those with bad credit. If you have the money on hand for a secured cards deposit collateral, this will likely be the easiest, safest-for-your-credit and most straightforward option.
Theres a relatively low bar for approval with secured cards and the collateral mitigates risk for the issuer, meaning you can even find secured cards with rewards. If coming up with the money upfront is unachievable, reconsider getting a card if at all possible, an unsecured card designed for subprime lenders will be the most accessible option.
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Whats The Lowest Credit Score Needed To Buy A Car
Getting an auto loan with a credit score of between 400 and 450 is more possible than you may think. These are installment loans, and since the vehicle is used as collateral to secure the loan if you default on the payments, the lender has a good chance of getting your car or your money.
Obviously, theyd prefer you made your loan payments on time.
The secured nature of auto loans makes getting approved for car financing, even if you have bad credit, easier than some unsecured loans. The interest rate from a lender that specializes in auto loans for people with bad credit will likely be higher than it would be from a bank or credit union.
Online dealer networks, some of which weve listed above, specialize in helping consumers with poor credit buy cars they can afford. Loans are arranged through an auto dealer. Credit score requirements are usually minimal, and a monthly income of at least $1,500 is often required.
Tips To Reach The Minimum Score Needed For A Discover Card
You can take steps to improve the chances that Discover or another credit card issuer will approve you for a card. Your credit card qualifications are based on a variety of factors under your control.
First, get your credit score and credit report. If theres anything in your credit report thats hurting your score, you can work on establishing better financial habits, or dispute any incorrect information. Start by trying to reach the minimum credit score needed for a credit card. Once you use one card responsibly, it may be easier to get others.
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Steering Clear Of Bankruptcy
Bankruptcy is a highly feared word in the world of finances. Its something that we all hope we will never have to endure the mere thought or possibility of it is enough to make us quiver in fear.
Bankruptcy is definitely not something that should be underestimated. It will be one of the biggest blows not only to your finances, but to your state of mind and well-being as well. Plain and simple, a bankruptcy is something that you want to avoid at all costs. And as you may have guessed, a bankruptcy is not going to look good on your credit report .
But while it is universally acknowledged that bankruptcy is something that you should try to avoid at all costs, there are still many mistaken beliefs that surround how to avoid it, too. A bankruptcy will immediately lead to a huge drop in your credit rating and will be visible on your report for over ten years at least. This means that if your credit score has already fallen thanks to late/missed payments or defaults, with a bankruptcy, things arent exactly going to look so sunny.
What if you are forced to file for bankruptcy? Is it still possible to rebuild your credit?
Yes, it still is. Even though your bankruptcy will be listed on your report for ten years, you can still slowly but steadily rebuild your credit by paying each of your bills when you need to. In this scenario, however, its vitally important that you repay each of those bills without exception.
Faqs About Bad Credit Loans
Dont assume you cant get a loan whether its a personal loan, credit card, auto loan, or home loan because you have poor credit. As weve explained through our list of best loans and credit cards for 400 to 450 credit scores, there are lenders that work directly with such consumers and want to provide them credit.
It can be confusing, so here are some frequently asked questions that will hopefully clear some things up:
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Best Credit Cards For Bad Credit
Steve Rogers has been a professional writer and editor for over 30 years, specializing in personal finance, investment, and the impact of political trends on financial markets and personal finances.
If you have bad credit you may have given up on getting a credit card. Thats a mistake. Credit cards are a great way to build credit, but you cant use them to build credit unless you can get one! Credit cards for bad credit may not be easy to find, but they are out there.
There is a way for even people with bad credit or no credit score at all to get a credit card and start building credit. Unfortunately, these cards typically come with high fees, high interest rates, and little spending power. They are not always an attractive option, but sometimes they may be your only option.
If your credit score is closer to the upper limit of the bad credit score range, consider improving your credit score before applying for a credit card. come with better terms and you can even get cards with no annual fee, cards with rewards, cards for travel, student cards, and more.
Lets look at some of the best credit cards for people with bad credit.
Personal Loans With A 450 Credit Score
You might find it challenging to get approved for a personal loan with poor credit scores.
Given your current scores, you might not have the luxury of shopping for the best personal loans with the lowest interest rates. Instead, you may have to settle for a personal loan with a high interest rate not to mention other fees, such as an origination fee.
This could make a personal loan seem very unappealing to you, especially if your intention with the loan is to consolidate high-interest credit card debt. The APR on your personal loan could be just as high, if not higher, than the interest rate youre currently paying on your credit cards.
On the other hand, if your goal with a personal loan is to finance a major purchase, you should ask yourself whether its something you need right now. If it can wait until after you spend some time building credit, you may qualify for a personal loan with a lower APR and better terms later down the line.
If youre really in a pinch for cash and youre having a difficult time finding a personal loan you qualify for, you might be considering a payday loan. While everyones situation is unique, you should generally be wary of these short-term loans that come saddled with high fees and interest rates. They can quickly snowball into a cycle of debt thats even harder to climb out from.
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What Credit Card Can I Get With A 450 Credit Score
You might have a hard time getting approved for a credit card with poor credit scores.
The good news is, Credit Karma can help. You can log in to your account to see your personalized Approval Odds for a number of different credit cards. While your Credit Karma Approval Odds arent a guarantee that youll be approved for a particular card, they can help you find a credit card that matches your current credit profile.
Here are some common options you may come across.
What Impacts My Credit Score
All sorts of factors, including the number of credit applications youve made, can contribute to a good or bad credit score. Thats why its important to check the likelihood of being approved for borrowing before you go ahead and apply.
Providers often offer tools that let you your quickly check your eligibility for apersonal loanorwithout affecting your credit score in any way. A soft search wont impact your credit history, and only takes a couple of minutes.
Here are some other factors that can affect your credit score:
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What Are The Different Types Of Bad Credit Loans
There are many different types of bad credit loans in Canada, including the following:
Personal Loans
Many lenders will offer standard personal loans to those who have bad credit. While it may not be possible to do with a big bank, many personal loan lenders offer up to $35,000 or more. Interest rates on these types of loans are often higher, ranging on average from 3% to 46.97%. Legally, no lender can charge you more than 60% annually.
Secured Loans
Another option you can choose is a secured loan. These will often have lower rates, but you will need to put some form of security, typically your home, a piece of property, or your vehicle as collateral. However, these are quite risky as you could potentially lose your home or vehicle or if you default on your loan.
Guarantor Loans
If you dont have any collateral to offer, but youd still like to avoid the high-interest rates that come with an unsecured loan, you can also apply for a guarantor loan. Here, your credit would not typically be a factor. Instead, youll need to seek the help of a co-signer, someone with better credit and healthier finances, and who would willingly take on the responsibility of your payments in the event that you cant afford them.
Having a guarantor on your side can be extremely beneficial, because this will allow you to access a loan without your own credit being checked , but youll still be able to build and improve your credit as long as youre making payments on time and in full.
Payday Loans
Surge Mastercard Credit Card
The Surge Mastercard® Credit Card offers a high maximum credit limit of $750, but this depends on your creditworthiness. This high credit limit comes at a high price, however. This card is rather expensive, with an annual fee that ranges from $75 to $99. The monthly fee of $10 starts in the second year, but you may be eligible to waive the fee if you get approved for a $750 credit limit. This credit card also allows you to get pre-approved. Although this doesnt guarantee approval, it will allow you to get a good idea without making a negative impact on your credit score. Additionally, before you can open this card, you must prove that you have a checking account.
The Grace Period of 25 Days Will Help You Keep Interest Down
Other expenses that you will have to keep in mind with this credit card include the variable interest rate of 25.99% to 29.99%. This is a high interest rate that will require you to make purchases responsibly if you need to keep an eye on your spending. But, the Surge Mastercard® Credit Card will offer you a grace period of 25 days, which gives you a bit of leeway to make your payments before this high interest rate is applied.
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Discover It Student Cash Back
The Discover it® Student Cash Back is a good starter card for college students, providing high-rate bonus rewards in the form of 5% cash back on up to $1,500 in eligible bonus category purchases each activated quarter.
- Earn 5% cash back rewards for purchases on up to $1,500 in qualifying category purchases each activated quarter
- Earn unlimited 1% cash back on all other purchases
- Pay $0 annual fee
In addition to purchase rewards, the card also offers Discovers signature Cash Back Match signup bonus that doubles the cash back cardholders earn in their first year. The card even offers a 0% APR for new purchases and a reduced balance transfer rate for six months.
The Capital One Quicksilver Student Cash Rewards Credit Card is a solid option for any tertiary student who doesnt want to worry about rotating rewards categories. This card offers flat-rate rewards valued at 1.5% per $1 spent.
- Earn unlimited 1.5% cash back on every purchase every day
- Be automatically considered for a higher credit line in 6 months
- Pay $0 annual fee
The cards variable APR is on the higher side, so do your best to pay your balance off each month so you can avoid interest charges altogether, thanks to the interest-free grace period.