Bad credit

Best Credit Cards for Bad Credit of January 2022 – Forbes Advisor

If you know you have bad credit and are looking to apply for a credit card, you still need to know where you fall on the bad credit spectrum and have an idea of ​​your goals in acquiring a credit card. credit and what is realistic.

Secure credit cards for bad credit

When you’re new to credit or have had some serious missteps in the past, a secured credit card might be your best bet. Lenders who may be reluctant to extend credit to borrowers who are in financial difficulty may be more likely to approve applicants for a secured credit card, as it requires a deposit that can be garnished if the debt is not paid . This makes the borrower less risky for the lender.

Each secured card is different and comes with its own minimum and maximum credit limits, usually starting with a minimum required opening deposit of a few hundred dollars to several thousand dollars, depending on the card’s maximum limit and the deposit amount you make. wanting and being able to separate.

Unsecured credit cards for bad credit

If you simply lack a credit history or haven’t built up enough credit to get a good or better credit score, an unsecured card may be feasible. There are several unsecured cards on the market for those who don’t have great credit. Just be aware that not all unsecured cards for better credit are created equal. Many of these cards come with annual fees and/or other charges such as account set-up fees that can eat into your available credit. Unsecured cards for bad credit usually come with exorbitant APRs, which can make maintaining a balance expensive.

Credit cards after bankruptcy

Starting over financially after bankruptcy can be tricky. You cannot apply for a card until your bankruptcy is discharged. But once it does, your best bet is to apply for a card as soon as the bankruptcy process is complete, so you can start rebuilding your credit immediately.

There are steps you can take to rebuild your credit after bankruptcy, but depending on the type of bankruptcy you filed, it will show up on your credit report for seven to ten years. However, this does not completely eliminate all credit card prospects.

There are a small handful of credit cards you can get even with bankruptcy on your credit report, including ones that don’t require a credit check. Be sure to read the terms and conditions of any card you’re interested in to see if your financial situation matches the card’s requirements and restrictions.