Introduction
Budgeting when you have poor credit rating is not an easy task, especially when it comes to obtaining conventional credit. But credit restoration is possible and one of the best ways to do this is by using a credit card that is tailored for those with poor credit rating. By 2024, most companies are giving options for those with poor credit scores to enhance their credit scores.
At Middlesex Healthcare Federal Credit Union, we know that our members need to get back on their feet financially. In this guide, we will show you the best credit card for people with bad credit in 2024 and how to use the cards to rebuild your credit.
- Credit card for bad credit: what you need to know
It is crucial to know the aim of credit cards for bad credit before moving to the best options for them. These credit cards often come with higher interest rates and lower credit limits compared to traditional cards, but they serve a vital purpose: they enable you to reform your credit status by demonstrating a positive use over several months.
If you manage your credit card well, by paying your balance on time and keeping the utilization rate low, credit bureaus receive positive information that may after some time reflect on your credit score.
However, it’s important to select the right credit card, which has reasonable interest rates and charges for people with bad credit. Now, let’s look at what credit card options people will have in 2024 if they are in this situation.
- Best 3 Credit Card Offers for Bad Credit in 2024
The Discover it Secured Credit Card
- Annual Fee: $0
- APR: 27.24% Variable APR
- Key Features: 5% cash back rewards, credit report to all three major bureaus
The Discover it® Secured Credit Card remains one of the best options for individuals with bad credit in 2024. Despite being a secured card, which requires a refundable security deposit, it offers benefits that rival traditional credit cards. Cardholders can earn 2% cash back at gas stations and restaurants and 1% on all other purchases.
Additionally, Discover will match all the cash back you’ve earned at the end of your first year, making it a lucrative option for those looking to rebuild their credit. Since it reports to all three major credit bureaus (Equifax, Experian, and TransUnion), responsible usage of this card can help boost your credit score over time.
Capital One Platinum Secured Credit Card
- Annual Fee: $0
- APR: 30.49% Variable APR
- Key Features: Flexible security deposit, no annual fee
The Capital One Platinum Secured Credit Card is another excellent option for individuals looking to rebuild their credit. It requires a refundable security deposit, but the amount varies depending on your creditworthiness, with minimum deposits starting at $49, $99, or $200. This card offers flexibility in building credit without the burden of an annual fee.
One notable benefit of this card is the potential for a credit line increase after making your first five monthly payments on time, giving you the opportunity to grow your credit limit without additional deposits.
OpenSky Secured Visa Credit Card
- Annual Fee: $35
- APR: 22.64% Variable APR
- Key Features: No credit check required, low APR
The OpenSky® Secured Visa® Credit Card stands out for individuals who may have difficulty qualifying for other secured credit cards due to a lack of credit history or extremely low credit scores. This card does not require a credit check during the application process, making it accessible to a wider range of individuals with bad credit.
Despite charging an annual fee of $35, it has a low APR, and no credit check is required to make it ideal for individuals who want to rebuild their credit. Like most of the secured cards, it comes with a refundable deposit which acts as the credit limit.
- Selecting the Best Credit Card for Bad Credit
Picking the right credit card that is needed to rebuild credit is all about your financial profile. Here are a few factors to consider when selecting a card:
- Annual Fees:
There are some credit cards for bad credit that have annual fees and others that do not. Remember always to compare the advantages of having the card with the disadvantage of having to pay the fee.
- Security Deposit:
Secured credit cards require you to pay a refundable amount of money that acts as collateral and your credit limit. If you cannot make a deposit, consider an unsecured credit card as a Petal® 1 Visa® credit card.
- Interest Rates:
Credit cards for bad credit also have higher interest rates than those of credit cards with good credit. If you expect to need to continue using the credit, it is probably wise to select a card with a lower annual percentage rate.
- Credit Reporting:
Ensure that the card is reporting your payments to the three major credit bureaus because this is very important when it comes to credit repair.
Bottom Line
You can improve your credit in 2024 with the right apparatus and the right behaviors when it comes to money. The credit cards for bad credit holders provide the opportunity to increase the credit score and get a loan, have favorable terms, and achieve the desired goal.
Middlesex Healthcare FCU is committed to supporting our members through the process of rebuilding their financial lives. If you have any questions regarding credit card choice or other financial offers, feel free to ask our specialists. In unison, we can assist you in creating a better financial life for yourself.
For personalized advice or more information on our services, reach out to Middlesex Healthcare FCU today.
