You have a bad credit? We have a solution! Wouldn’t it be nice if we could claim long-term financial stability? but sadly that is not the case.
Let’s not fret too much! In fact, it’s time to look into the solutions. You might be surprised to hear this but the most reliable way to rebuild credit is with a credit card. The only trick is: you need to know how. And this is what we are here for!
Flashcard: What Is Bad Credit?
In layman language, bad credit is something a person has when he is not very punctual about paying bills or someone who is in great debt.
Technically, Credit is judged on the scale of 300-850. A Bad credit is categorized as the credit score that falls below 580. Anything below 550 is known as “poor credit”. For an excellent rating, you need to have at least 700 credit score.
7 Reasons Why You Ended Up With A Bad Credit!
You failed to be pay off your credit card bills or a loan
Honestly, who would want to lend someone more money when they are famous for not paying off debts.Such a history, also known as defaulting, would put a serious question mark on your reliability as a credit applicant.
You have a high credit utilization
Credit utilization refers to the amount you borrow as compared to the total available credit. There is no simpler way to put this: if you want to avoid bad credit, you’re your credit utilization as low as possible.
You have a history of late payments
At least 35% of your credit score depends on your payment history. If you are found to be habitual of late payments, your credit score will take a pretty bad blow for it.
Unpaid judgments
When you have crossed a couple of deadlines, court judgments will force you to pay off your debts. Such judgments are also included in your credit score history.
You have faced a Charge off
In the list of reasons that could lead to bad credit, this factor surely has a great impact. A charge off means that the creditor figured out you won’t be able to pay off the debt and instead of pursuing you any further he stopped collection attempts altogether. If this happens, your account will be charged off.
Foreclosure
Fico defines a foreclosure as “the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments”. This could have an affect on your overall credit score. How? As the rule goes “ the higher your credit score, a bigger drop you will have as a result of foreclosure”
The last one? Total Bankruptcy
Sometimes the only thing you can do to get out of debt is to go completely bankrupt to pay them off. It might be a last resort but this option can work well for you. However, it will have a lethal affect on your credit score
Rebuild Your Bad Credit With These 10 Credit Cards
ACE Flare™ Account by MetaBank®
The ACE Flare™ Account by MetaBank® is a perfect example of how a bank account can change your life. Right now, the Flare account is doing more than just look out for your needs.
It offers direct deposits that ensure that any pay rolls or benefits are in your account at the time of need. You can steer clear of cashing lines and fees.
With the ACE Flare™ account, you can also opt to get paid 2 days faster. Furthermore, you can withdraw up to $400 cash without any charged fee (Terms and Conditions Applied).
How can ACE Flare™ account help you when you have a bad credit? It is basically a high-yield savings account where you can earn up to 6% APY. The Anytime Alert feature will also keep you up to date on any transactions, payment history, remaining balance and much more.
The ACE Flare™ Account also “earns interest”. Quite interesting! You can earn upto 0.01% APY on funds in your account.
The last perk worth mentioning here for anyone who is currently facing a bad credit score is that the ACE account comes with payback rewards. You can activate the Online Account Centre on the mobile app and avail special offers that will earn you credit.
Fingerhut Credit Account
Fingerhut Credit account offers 500,000+ items from well-known brands including Samsung, DeWalt and KitchenAid. The account also has a fast and easy application process that works smoothly online so you can get done with it in minutes.
The WebBank determines if you qualify for the terms of credit. You can take advantage of low monthly payments if you get accepted as a Fingerhut Credit Account offered by the WebBank.
This account is also amazing if you want to build your credit history. The Fingerhut will update all the major credit bureaus on your credit holdings.
First Access Visa® Solid Black Credit Card
“We will approve you when others don’t” The First Access does not require you to have a perfect credit score.
The First Access Visa® is another great choice for building credit history. It sends out monthly updated information to the 3 major agencies responsible for credit reporting
The credit card is accepted online and at millions of ATM locations and merchants nationwide. It has a secure online portal and the Customer Center is available 24/7. If you are successful in signing up for the account, you can immediately opt for $300 credit limit by just paying minimal program fee.
First Digital MasterCard®
This is another good candidate on the list of best credit cards for bad credit. It does not require you to have a perfect credit to get the approval for being a card-holder.
The First Digital Mastercard® is accepted at millions of locations including ATM’s and merchants. It sends out monthly updated information to the 3 major agencies responsible for credit reporting.
That is not all! If you use the card responsibly for 6 months, you will be made eligible for a Credit Line increase. Furthermore, you just have to pay the Program Fee one time to get the account and credit line activated.
First PREMIER® Bank Secured Credit Card
Another handy tool to help you along the way of rebuilding your credit. Applying for this card does not require any credit history.
You can easily win positive marks by simply making the payments timely each month and maintaining a low balance relative to the credit limit. It is just that easy!
The online service is pretty active too. You can access it any time of the day and use it to set reminders, alerts and even schedule automatic payments. The “Zero Fraud Liability” will protect you from unauthorized charges.
The Security deposits you make will also be held safely in the FDIC account. If approved, it can be used to open the account. Furthermore, with the PREMIER® Bank Secured Credit Card you will have the chance to build the credit limit up to $5,000.
Merit Platinum Card
So far we have talked about the credit cards that will help you when you have a bad credit. But what about the instance when you have no credit at all? That is not a problem with Merit Platinum Card.
You don’t need a credit check, employment certificate or any credit history to apply for this gem! However, if your aim was to build credit history, you are lucky! Because the Merit Platinum will report the updates to all the major credit reporting agencies.
You also get a free privacy protection with this credit card in for of credit report that you can access anytime. It offers 40% discounts on the purchase of prescribed drugs/medicines and a 30 minute free consultation session with legal officials. Not to forget the $500 unsecured credit line that comes with it!
Merrick Bank Double Your Line™ Platinum Visa® Credit Card
Stay far away from penalty rates and over limit fees with the MerrickBank Double Your Line™ Platinum Visa® Credit Card.
The credit line range starts from $550-$1250. If you make timely payments for the first 7 months, the credit line doubles to $1100-$2500. You will also be kept updated with your FICO score each month.
Easily accessible mobile apps and Fraud liability plans are just few other perks of the Platinum Visa Credit Card that you don’t want to miss on.
Merrick Bank Secured Visa® from Merrick Bank
Before we start telling you about the perks and benefits of Merrick Bank Secured Visa® card, here’s what qednick has to say about his journey with this credit card:
You can build your credit history with the Visa® card as it reports to all the major credit bureaus. Also, you just need to make the security deposit in the first year. After that, you will be automatically assessed for credit line increase on regular basis with NO FEE!
Initially, the deposit amount will determine the starting credit line. You can always increase the credit line by making additional deposits.
The Visa card is accepted worldwide and the online system has made the application process a breeze.
NetSpend Visa® Prepaid Card
A very reliable option for anyone who is looking for the best credit cards for bad credit.
As this is not a credit card you will not get any charges on late fee or interests. Also with direct deposit, you can get paid in a blink of an eye. Besides this, use this card to make purchases and you will not have to face overdraft fees.
The mobile app will lend you a hand in keeping track of balance and transactions through text messages and alerts.
Total VISA® Unsecured Credit Card
This is an unsecured credit card with minimal limit set for those who have a bad credit. It will only ask you to pay the program fee once. The card, however, will charge a penalty for late payments.
This card can help you rebuild your credit BUT only if you are responsible. It has a set-up, annual and maintenance fee as well as fee for late payments so you will be held accountable if you don’t manage smartly.
The VISA® card has an easy application process and is accepted nationwide all across the U.S. It also sends out monthly reports to all the credit scoring agencies.
Don’t Dishearten Yourself!
That is a long list of credit cards that are just here for one purpose. That is you don’t lose hope in your bad-credit days because the benefits here will help you build credit and move to a better financial standing.
Don’t be low, be smart!