Credit cards for poor credit are more common than you might think.
In this article, we’re going to explore the available options, answer questions we receive on the topic, and discuss how you can improve your credit score before applying.
This article is part of our free series on credit card essentials, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Credit Cards for Poor Credit
- Poor Credit vs Bad Credit
- How to Apply for a Credit Card With Poor Credit?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Credit Cards for Poor Credit
Credit cards for poor credit include a range of credit cards for individuals with limited credit history or a poor credit score, otherwise known as subprime credit cards. These credit cards include secured credit cards and credit builder programs.
Not surprisingly, credit cards that cater to individuals with poor credit tend to have a lower credit limit, higher annual percentage rate (APR), and (in the case of secured credit cards) require cardholders to maintain a deposit as security with the card issuer.
Before applying for a credit card, it’s important to compare the credit card advantages and disadvantages, to choose the best option for your financial goals.
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Poor Credit vs Bad Credit
There is no difference between poor credit and bad credit. These terms are used interchangeably to describe a credit score in the lowest tier, which can vary in terms of numerical score depending on the credit bureau being assessed. For example, a “poor” credit score with Experian is any credit score below 579.
How Do I Build My Credit Score?
There are a number of strategies that you can use to build your credit score. These strategies range from paying down your overall outstanding debts, paying down credit cards and other unsecured credit facilities that report to bureaus on a monthly basis, increasing your credit limit, and more.
Here is a closer look at the strategies you can use to build your credit score:
- Pay down outstanding debt to lower credit utilization
- Increase available credit to lower credit utilization
- Pay credit cards because they report to bureaus monthly
- Obtain and responsibly use a secured credit card
- Get added as an authorized user to someone else’s credit card
- And more
How to Apply for a Credit Card With Poor Credit?
To successfully apply for a credit card with poor credit you will need to apply for cards that you can realistically obtain. This means assessing your own credit history and determining whether you should apply for a secured credit card or a credit rebuilding credit card.
With this in mind, here are some of the factors to consider when looking for credit cards.
Factors to Consider When Looking for Credit Cards
The factors to consider when looking for credit cards will depend on the specific objectives you have for the card. This is especially true if you are looking for a card that offers certain benefits, features, or the ability to earn rewards points. With this in mind, choosing a credit card should be a very personal decision based on your own goals.
Here are a few of the key factors to consider when looking for credit cards:
Card Eligibility Factors to Consider
- Income requirements
- Credit score requirements
- Targeted customers for the cards
Desired Services & Features
- Specific features you value
- Any desire for travel rewards
- Currencies you want access to
- Frequency of travel abroad
How Do I Find My Credit Score?
You can find your credit score in several locations, including an existing credit card provider, automotive loan provider, the bank where you hold accounts, credit score tracking services, and elsewhere.
Do Credit Cards Have a Credit Limit?
Yes, credit cards have a credit limit. This refers to the total amount that an individual can charge to their credit card. The credit limit on credit cards is set by the card issuer. Over time, the credit limit can be increased based on the cardholder’s repayment activity and card use.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into credit cards for poor credit. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Can I Get a Credit Card With Very Bad Credit?
Yes, you can get a credit card with very bad credit. However, the cards available to you will be those designed for individuals with poor credit history or secured credit cards. In the case of credit cards for individuals with bad credit, they typically have higher interest rates and lower credit limits. On the other hand, secured credit cards require you to maintain a balance that will be held as security, which offsets the bank’s risk and results in them being willing to onboard clients with poor credit scores.
What Credit Card Is Good for Those With a Very Low Credit Score?
The credit cards that are good for individuals with a very low credit score are typically secured credit cards or credit rebuilding credit cards. In both cases, credit card issuers that offer these cards typically cater to individuals with limited credit history or poor credit scores. This means that they are often much more accessible to individuals with very low credit scores than those who cater to normal credit applicants.
Which Credit Card Is Very Easy to Get?
The easiest credit card to get is a secured credit card. In fact, even if you don’t have any credit history in a country, it’s still possible to get a secured credit card from most card issuers that offer it. With this in mind, if you are a local tax resident with a tax identification number, you will certainly be eligible for a secured credit card as long as you can make a secured deposit that you are willing to maintain at the bank.
What Is the Lowest Credit Score for a Credit Card?
The lowest credit score for a credit card will depend on the specific card issuer and card that you are considering applying for. This is because all issuers set their own requirements for card approval. That said, generally speaking, even credit scores that are considered low can still be approved if they target the correct card and an issuer that is willing to accept lower credit score applications.
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