Credit Cards for People With Less Than Perfect Credit
People with less than perfect credit still have a variety of options when it comes to applying for credit cards. Those trying to build or rebuild credit history due to an uncertain or shaky past can choose from credit cards with higher interest rates, secured credit cards, and certain store credit cards. These options can help individuals develop a more solid credit foundation.
Credit Cards With High Interest Rates
Banks such as Capital One, Barclays and Chase provide a series of credit cards to people with fair or average credit. Some of these credit cards less than perfect credit even offer cashback bonuses. Some cards give features to protect people from getting too deep in debt, such as spending monitoring via text messages on the Capital One Platinum card. Others provide individuals with complimentary FICO scores such as the Barclaycard Rewards Mastercard. Higher spending limits are sometimes offered after several months of proven on-time payments. Interest rates may range between 20 and 25 percent, and some cards charge small annual fees usually less than 50 dollars.
Secured Credit Cards
With a secured credit card, individuals place a deposit into a collateral account, and they receive a credit card to use with a spending limit equaling the amount of the deposit. Some cards offer a hybrid on the secured credit card model such as the Capital One Secured Mastercard, in which someone receives a card with a spending limit ceiling higher than the amount deposited in the collateral account.
Store Credit Cards
Some major department stores offer store credit cards less than perfect credit. Major companies such as JCPenney, Walmart, Sears and Macy’s provide store credit cards, and these can help in rebuilding one’s credit score. Some come with very low spending limits, but it is a way to get a foot in the door.