Best For Secured Card With A Low Deposit
The Capital One Platinum Secured Credit Card is worth considering if you can only put down a small amount for the security deposit. If you qualify for the low $49 or $99 deposits, you’ll still receive a $200 credit limit.
The card is also good for travelers since there are no foreign transaction fees, meaning you will not incur any fees for using the card to pay for your expenses while you’re traveling outside of the United States. The card also has no annual fee and features automatic reviews to increase your credit line that can start as soon as six months into your card membership.
First Access Visa Card
You do not need to have a good credit score to get the First Access Visa Card. People with a credit score of 500 are free to apply. You can apply online using your computer or your smartphone, whichever is convenient. Approved customers have to pay a program fee of $95.00.
Note that the bank of Missouri issues the card. Again, you will get a credit limit of up to $300. The card aims to help people with bad credit to recover from their bad scores to higher credit scores faster. Moreover, the company has put tight security measures to protect you from fraud. Apply for the card here.
Can I Get A $5000 Credit Limit With Bad Credit
The chances of getting a $5,000 credit limit when you have bad credit are slim. In fact, any credit limit above $3,000 is an enviable achievement if your credit is poor.
The following chart shows the relationship between credit score and credit limit:
These are averages, meaning there is a chance youll receive a better-than-average credit limit.
The charts data gives perspective to the starting credit limits $200 to $500 offered by many of the reviewed credit cards. Even the lowest credit category shows an average credit limit above $1,800, which means there is plenty of room for building credit once you acquire your unsecured card.
If you care about increasing your credit limit, you may want to adopt a strategy to get you there:
Each issuer sets its own rules regarding credit limit increases, so your results will inevitably depend on who issued your card.
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What Is The Opensky Secured Visa Credit Card
The OpenSky® Secured Visa® Credit Card was created by Capital Bank N.A. and was created for people who need to establish or rebuild credit.
They dont check your credit when you apply and you can get approved with poor credit or no credit at all.
The card reports to all three major credit reporting agencies, which will help you build credit if you handle your card well.
Like most secured cards, it does require an initial security deposit once you get approved.
Who Is Capital Bank N.A.?
Capital Bank N.A. is FDIC insured and headquartered in Rockville, Maryland. They are a Maryland chartered commercial bank that offers commercial and consumer banking services.
Their OpenSky® credit card division offers and services credit cards across all states and they focus on merging digitally based products with personalized services.
Capital Bank N.A. has been around since 1999. Today they have more than $1 billion in assets and have experienced consistent double-digit year-over-year growth.
Best For No Security Deposit
The is a solid choice for consumers with less than perfect credit. While this card is secured through a deposit, you can still earn rewards on specific purchases. As you spend on the card, you’ll earn 1% cash back on eligible gas and grocery purchases, monthly mobile phone, internet, cable, and satellite TV services. And according to Credit One Bank, your account will be regularly reviewed for potential credit line increases.
However, the card has a $75 annual fee the first year, and then $99 annually .
See rates and fees, terms apply.
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Fit Mastercard Credit Card
With its easy application process, you can get approved for the Fit Mastercard® Credit Card quickly. However, you must first prove that you have a checking account. You will also need to pay a rather high one-time fee of $89. Although the card does not require you to pay monthly fees in the first year, you will have to pay an $99 annual fee every year that you have the card. One of this cards benefits is its 25-day grace period. This means that you have 25 days to make a payment before interest builds. Additionally, your credit information will be analyzed monthly, giving you the opportunity to consistently improve your history.
This Card Offers You a $400 Credit Limit
You can use this unsecured credit card at any location that accepts Mastercard. Although this card does not offer rewards for purchases, it offers you a credit limit of $400, which is higher than most other credit cards for low credit scores. With this extra credit limit, you can have extra flexibility to make emergency purchases. Still, its important to note that the interest rate, like the other credit cards on this list, is high. At 29.99%, this credit card offers a variable interest rate, meaning the rate can change over time based on the interest rates of the market. This card has a maximum late fee of $40.
What Credit Cards Can You Get With Bad Credit
Unsecured loans or lines of credit are types of financing that aren’t backed by any kind of collateral. Debts like your mortgage or auto loan are tied to assets that can be repossessed if you fail to make good on your payments, but unsecured credit cards have no such backing. Compared with other types of credit, unsecured credit cards present more of a financial risk to lenders, which may cause them to be more discerning when deciding whether to approve you.
Having a good score tells creditors you know how to manage your credit responsibly and indicates you are a low-risk borrower. But if your credit score is hovering around the 500 mark, it might mean you’ve got negative marks in your credit history, such as missed payments or bankruptcies. That can make it difficult to get approved for an unsecured credit card.
If that’s the situation you’re in, secured credit cards are worth exploring. They’re different from unsecured cards in that borrowers are required to make an upfront, refundable security deposit. In most cases, your deposit determines your credit limit. And it provides the card issuer with peace of mindif you miss enough payments, they can use that deposit to cover their losses.
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Alternatives To Secured Credit Cards
Unsecured cards for bad credit
Several issuers specialize in unsecured credit cards for people with bad credit, but NerdWalletgenerally doesn’t recommend them. That’s because these “subprime specialist” cards tend to charge high fees that can easily add up to much more than a typical minimum security deposit annual fees up to $99, application fees, “activation” and “processing” fees, monthly maintenance fees and so on. And unlike the deposit on a secured card, those fees are money you can’t get back. Our roundup of the best and worst cards for bad credit has more information on cards to avoid.
Prepaid debit cards
Prepaid debit cards offer convenience and are a safer alternative than carrying cash, but they don’t help you build credit. With a prepaid debit card, you “load” money onto the card, and the purchases you make are paid for with that money. Since you’re not borrowing money, there’s no effect on your credit score. See NerdWallet’s best prepaid cards.
Offered mostly by smaller financial institutions, such as credit unions and community banks, these loans are designed to help you build a good payment history. The money you “borrow” isn’t actually given directly to you. Instead, it’s held on your behalf in a savings account while you repay the loan in monthly installments. Once you’re done, the money is released to you and your credit report shows a paid-off loan. Learn more about credit-builder loans.
Taking Action On Your Credit
If you have no credit, a thin credit file, of damaged credit, a credit card can help you build a better credit record. The OpenSky® Secured Visa® Credit Card is a great starter choice for people who are having a hard time getting approved for other cards.
There are risks involved in using any credit card, and youll need to use discipline and handle your card well to see your credit grow. If you use it badly it could even hurt your credit.
If you have decided on a secured credit card, the only real drawback to this one is the annual fee. There are other secured cards with no fee, and wed suggest at least checking those to see if you qualify before settling on a card with an annual fee.
If you dont qualify and most no-fee secured cards are harder to get than this one the OpenSky® Secured Visa® Credit Card will be one of your top choices.
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Why These Cards Are Better Than Prepaid Cards
You might opt for a prepaid card because its easy to qualify for and use, but they dont help build credit. Each credit card mentioned above reports your payment history to the credit bureaus.
Payment history and credit utilization are important to your . You can improve your credit score by making your payments on time. You should also keep your credit card balance at 30% or less of your credit line.
Your credit score affects you in many areas of your life. Improving it can help you secure new loans and get lower interest rates on those loans. You can even get lower insurance premiums.
Capital One Platinum Credit Card
Another great option from Capital One is the Platinum Credit Card. This card is designed for those with fair – average credit score or limited credit history and has lower and/or less fees than most unsecured credit building cards.
The card doesn’t have any annual, foreign transaction or returned payment fees, no penalty APR, however, it will charge you up to $40 fee for late payments. It has a variable APR rate of 28.49%, allows you to monitor your credit with its CreditWise feature, and after 6 months doing on-time payments and using your card in a responsible way, your account will be automatically considered for a higher credit line. This is very helpful as you can lower an important factor that impacts your credit score, and it’s your credit utilization ratio
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How We Came Up With This List
Those factors include:
- Cards that are available to those with the lowest credit scores.
- The issuer reports to all three major credit bureaus TransUnion, Experian and Equifax giving you an opportunity raise your credit score with all three.
- Secured or unsecured credit cards secured may be necessary for those with the worst credit profiles.
- Cards with small, but reasonable initial credit limits. They must be high enough to be usable, but not so high as to put you deep in debt.
- Low or no annual fee .
- Offering the ability to increase your credit line as your payment history warrants.
- Card features, like rewards and other benefits, if offered.
What’s The Easiest Unsecured Credit Card To Get Approved For
One of the easiest unsecured cards to get approved for is the . You can get approved for it even with bad credit. This card offers a $300 starting spending limit. And you can use it wherever Visa is accepted.
Easiest Unsecured Credit Cards to Get Approved For
- Small Business: Capital One Spark Classic for BusinessCapital One Spark Classic for BusinessLearn MoreLearn Moreon issuer’s website
The easiest unsecured credit cards to get generally work best for minor emergencies. You will only receive a small amount of spending power, after all.read full answer
Unsecured credit cards for people with bad credit also tend to be very expensive, charging lots of fees and high interest rates. So, if you dont need a small emergency loan, the best course of action is to improve your credit inexpensively with a secured card. Secured cards are cheaper than unsecured cards, build credit just as effectively, and offer the closest thing youll find to guaranteed approval.
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Opensky Secured Visa Credit Card Review
Sa El is a freelance writer, Co-Founder of Simply Insurance and a licensed Insurance Agent with over 12 years of experience in the industry. He is certified in Long Term Care Insurance in the state of Georgia.
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.
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How Long Will It Take Before I Can Apply For A Better Credit Card
That depends on two things: how bad your credit situation is now and how well you manage your current credit card. If your low credit score is mainly the result of very little credit in combination with a couple of late payments, you may see your score rise considerably after just a few months. But if you have a history of late payments, or a recent bankruptcy, you may need to use one of these cards for at least a couple of years before trading up.
Indigo Mastercard Credit Card
The Indigo® Mastercard® Credit Card offers great benefits. One of the best features of this card is its option to pre-qualify. This means that without affecting your credit score, you can inquire about the likelihood of approval before actually submitting an application. Additionally, depending on your credit history, you may be exempt from having to pay a recurring annual fee. However, the potential maximum annual fee for this card is $99. Although this is a hefty annual fee, its the only recurring fee that you will have to keep in mind. The Indigo® Mastercard® Credit Card does not have a one-time or monthly fee, which will help you save money to focus on building your credit.
With its $300 credit limit, this car doesn’t give you extra room for emergency purchases. But, it does offer a 25-day grace period and an interest rate of 24.9%, which is the lowest interest rate of all the unsecured credit cards on this list. Additionally, with this credit card, you will have 24/7 online access to your account so that you can responsibly monitor your spending. In the event of a lost or stolen credit card, which can negatively affect your credit, you will receive protection against fraud.
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Can I Get An Unsecured Credit Card With A 500 Credit Score
Your credit scores are three-digit numbers that carry a lot of weight. When it comes to unsecured credit cards, higher scores are associated with better chances of approval and lower interest rates. For that reason, it may be tough to qualify for an unsecured credit card if you have a 500 credit score.
There are many different types of credit scores, but your FICO® Score is commonly used by lenders to help them assess risk and decide how creditworthy you are. FICO® Scores range from 300 to 850, and a score of 670 or higher is generally considered a good credit score. A score of 579 or below is viewed as very poor, and may cause lenders to be hesitant to approve you for an unsecured credit card.
If you want an unsecured credit card, there are things you can do now to build your credit and get your score moving in the right direction. Here’s what to know when seeking an unsecured credit card with less-than-perfect credit.
Can You Get An Unsecured Credit Card With Bad Credit
If you have bad credit, you probably already know how difficult it can be to qualify for an unsecured credit card. As a general rule, your odds of approval and snagging lower interest rates decrease the lower your credit score is.
Nevertheless, getting an unsecured credit card with a below-average credit score is possible, but read the fine print before applying. While many cards are good options to consider adding to your wallet, others come with a lengthy list of fees and limitations that may not be worth it.
You can increase your chance of obtaining an unsecured credit card if you first tackle your poor credit history. .
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