The Search For Bad Credit Credit Cards

What is a Second Chance Credit Card?

A second-chance credit card is designed specifically for individuals with poor credit or no credit history. These cards provide an opportunity to build or rebuild credit by demonstrating responsible usage and timely payments. They often come with features and requirements tailored to help users improve their credit scores over time.

Types of Second Chance Credit Cards

Cards That Offer Instant Approval or Guaranteed Approval Credit Cards

Secured Credit Cards: These cards require a cash deposit as collateral, which serves as the initial credit limit. This minimizes risk for the issuer and ensures approval, making them accessible to those with bad credit. Regular use and on-time payments can help improve credit scores.

Secured credit cards are often favored by credit repair agents because the right secured credit card will have a low-interest rate, no annual fee, and with on-time payments, the card can become unsecured, allowing the issuing bank to refund the security deposit.

Top Secured Credit Cards

Here’s a list of some of the best secured credit cards currently available, catering to various credit-building needs:

• Better than Prepaid…Go with a Secured Card! Load One Time – Keep On Using
• Absolutely No Credit Check or Minimum Credit Score Required
• Automatic Reporting to All Three National Credit Bureaus

• A better way to get a Card Offer!
• Secured Cards
• Search, Compare, Apply!

Our Recommendation: Applied Bank Secured Visa Gold Preferred Credit Card – This is a true credit builder card! This card has a low-interest rate of 9.99% fixed. You can open it with a security deposit of $200-$1000 and increase your credit limit up to $5000 by sending additional deposits. This practice can help you look more creditworthy to potential lenders.

Catalog Cards: These are store-specific cards that guarantee approval as long as the applicant meets basic requirements. While these cards are considered unsecured cards, they can only be used to make purchases within a specific catalog or store.  Thus helping users build credit with controlled spending.

Since this type of card issuer generally doesn’t do a credit check, these cards are also called instant approval cards. Be aware that most of these cards will not report your payment history to the credit bureaus.  Many of them have credit builder plans.  These plans will report your payment history for a fee.  You can also self-report these cards.

Catalog cards are very popular with college students.  They allow you to buy electronics and other items that exceed the credit limits they have from bad credit unsecured credit cards.

Best Catalog Cards with Guaranteed Approval

Here’s a list of some of the best catalog credit cards with guaranteed approval:

• $750 Unsecured Credit Limit (Usable only at TheHorizonOutlet.com)
• Instant Approval*
• No Credit Check
• Bad Credit – OK

• Sezzle enables you to obtain no-interest loans for purchases.
• No hard credit check.
• Simple, transparent 6-week payment plan.
• With the Sezzle subscription, Sezzle Anywhere, shoppers can shop at any retailer (in store and in person) and pay in 4 with Sezzle.

• No Employment or Credit Check
• Bad Credit, No Credit – OK
• Always 0.0% APR
• Fast Online Applications

• No Employment or Credit Check
• Bad Credit, No Credit? No Problem
• Fast and Easy Application

• Bad Credit, No Credit? No Problem!
• Fast and Easy Application
• No Employment or Credit Check

Our recommendation: The Freedom Gold Card – This card will give you a credit limit of $750.  It has 0% APR! They are an instant approval card with guaranteed acceptance.

Non-Guaranteed Approval Credit Cards

Unsecured Credit Cards for Bad Credit: Unlike secured cards, these do not require a deposit. However, approval is not guaranteed and depends on the applicant’s credit history and other factors. They often come with higher interest rates and lower credit limits but can be a viable option for those starting to rebuild their credit.

Although these unsecured bad credit credit cards come with a low initial credit limit, but don’t let that stop you from applying!  Everyone needs to start somewhere and if you don’t have the money right now for a secured credit card, one of these unsecured cards will be a good start.

Many college students start off with one of these cards.  Because of their easy approval process, they make great student credit cards.

Unsecured Credit Cards for Bad Credit That You Should Get

Here’s a list of some of the best unsecured credit cards currently available, catering to various needs and credit profiles:

• $400 credit limit doubles to $800! (Simply make your first 6 monthly minimum payments on time)
• All credit types welcome to apply
• Monthly reporting to the three major credit bureaus

• Get Pre-Qualified in Less Than a Minute
• A $300 Unsecured Credit Line which can be used at Grocery Stores, Gas Stations, Discount Stores, ATM’s and Online!
• A REAL Visa® Credit Card with Automatic Reporting to all Three National Credit Bureaus

• Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
• See if you’re Pre-Qualified with no impact to your credit score
• All credit types welcome to apply

• Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
• All credit types welcome to apply!
• Monthly reporting to the three major credit bureaus

Our recommendation:  One of the best unsecured credit cards we have found is the Applied Bank Unsecured Classic card.  While this card gives an initial credit limit of $300, it has the lowest interest rate and fees of any of these cards.  Unlike many credit cards, they will not increase their interest rate if you are late making a payment.   Of course, the reason for getting this card is so you can rebuild your credit, so you don’t want to get into the habit of late payments.

But another great feature this card has is that they reward you for making on time payments. If you make your payments on time, they will increase your credit limit. They will also report to all 3 credit reporting agencies monthly.  This card is for people with fair credit – damaged credit.  For these reasons, we feel this is one of the best unsecured credit cards on the market.  The credit limit maybe low, but the company is fair and the comparably low interest rate and fees make it a card we feel you should consider as you start to build or rebuild your credit.

Credit Builder Loans: Although not a traditional credit card, credit builder loans function similarly by allowing users to build credit. The loan amount is held in a bank account while the borrower makes payments, which are reported to credit bureaus. Once the loan is paid off, the borrower gains access to the funds. While these have lenient credit requirements, they are not guaranteed approval but are great for rebuilding credit because they appear on your credit report as installment loans, adding diversity to your credit report.

Why These Cards Are Essential

Second chance credit cards are crucial for anyone looking to improve their credit score. They provide a pathway to demonstrate financial responsibility through regular usage and timely payments, which are key factors in credit scoring models. By utilizing these cards, individuals can gradually rebuild their credit profiles, gain access to better financial products, and ultimately achieve greater financial stability.

Understanding How Credit Scores Are Calculated

Before diving into alternative strategies for improving credit, it’s important to understand how credit scores are calculated. Credit scores, typically ranging from 300 to 850, are calculated using several factors:

1. Payment History (35%): Your history of on-time payments is the most significant factor. Late payments, defaults, and collections can severely impact your score.
2. Credit Utilization (30%): This is the ratio of your current credit card balances to your credit limits. Keeping your utilization below 30% is advisable.
3. Length of Credit History (15%): The longer your credit history, the better. This includes the age of your oldest account and the average age of all your accounts.
4. Credit Mix (10%): Having a variety of credit types (credit cards, installment loans, mortgages) can positively impact your score.
5. New Credit (10%): Opening several new credit accounts in a short period can lower your score. Each application can result in a hard credit check , which can temporarily reduce your score.

What to Do If No One Will Give You Credit

If you find yourself in a situation where no one will approve you for a credit card, it’s essential to understand the reasons behind these rejections and explore alternative strategies to rebuild credit.

Reasons for Rejection

• Extremely Low Credit Score: A credit score below 500 often indicates a history of missed payments, defaults, or bankruptcies, making approval difficult.
• Recent Bankruptcy or Foreclosure: These significant negative marks can make lenders hesitant to extend credit.
• High Debt-to-Income Ratio: If a person has high existing debts relative to their income, lenders may view them as too risky.
• Limited Credit History: A lack of credit history can be a barrier since lenders have no basis to assess creditworthiness.
• Frequent Applications: Applying for multiple credit cards in a short period can lower your credit score and signal desperation, which lenders may view negatively.

Steps to Take

1. Credit Builder Loans: Consider taking out a credit builder loan from a bank or credit union. These loans are designed to help individuals build credit by making regular payments, which are reported to the credit bureaus.
2. Become an Authorized User: Ask a family member or trusted friend with good credit to add you as an authorized user on their credit card. This allows you to benefit from their positive credit history.
3. Secured Credit Cards: Some issuers may have more lenient approval criteria for secured credit cards. Make a higher deposit if necessary to increase approval chances.
4. Credit Counseling Services: Seek assistance from a nonprofit credit counseling service. They can help create a plan to manage debt and improve your credit profile.
5. Address Negative Tradelines On Your Credit Report: Work on resolving outstanding debts, such as negotiating payment plans or settlements with creditors, and ensure all current accounts are paid on time.
6. Check and Dispute Credit Report Errors: Obtain copies of your credit reports from the major bureaus and dispute any inaccuracies that may be affecting your score.
7. Reduce Debt: Focus on paying down existing debts to improve your debt-to-income ratio. This shows potential lenders that you are managing your finances responsibly.
8. Alternative Methods For Building Credit: Use rent payment reporting services, utility bills, and other non-traditional credit-building methods to add positive information to your credit report.

By taking these steps, individuals can gradually improve their credit profiles, making it more likely they will be approved for credit in the future. Patience and persistence are key, as rebuilding credit is a gradual process.

Simple Steps to Improve Your Credit Using Guaranteed Approval Credit Cards

Improving your credit can seem like a daunting task, especially if you’ve faced financial challenges in the past. However, guaranteed approval credit cards can be a powerful tool in your credit repair journey. These cards are designed to help individuals with poor or no credit history build or rebuild their credit scores. By following these simple steps, you can effectively use a guaranteed approval credit card to improve your credit and set yourself on the path to financial stability.

Step 1: Understand Your Credit Situation

Before you start using a guaranteed approval credit card, it’s essential to understand your current credit situation. Obtain a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com. Review your reports for any errors or inaccuracies and dispute any discrepancies you find.

Step 2: Choose the Right Guaranteed Approval Credit Card

Not all guaranteed approval credit cards are created equal. Look for a card that best suits your needs and has favorable terms. Consider the following factors when choosing a card:

Get Professional Credit Repair Help

Why Choose Our DIY Credit Repair Course?

Cost-Effective Solution

Professional credit repair services can cost hundreds, if not thousands, of dollars. Our course offers a much more affordable option, giving you the same expert guidance at a fraction of the price. Save money and invest in yourself by learning the skills needed to manage your credit for a lifetime.

Comprehensive, Step-by-Step Instructions

We break down the credit repair process into simple, easy-to-follow steps. Whether you’re disputing errors on your credit report, negotiating with creditors, or learning how to manage your finances more effectively, our course guides you every step of the way.

Emotional Empowerment

Imagine the sense of accomplishment you’ll feel when you take control of your credit and see your score start to climb. Our DIY Credit Repair Course is designed to provide you with the knowledge and tools you need to repair your credit on your own. This journey is not just about improving numbers on a report; it’s about regaining control and feeling empowered.

Knowledge is Power 

By understanding how credit works and how to repair it yourself, you gain invaluable knowledge that empowers you to make smarter financial decisions in the future. This education not only helps you improve your current credit situation but also equips you with the tools to maintain a healthy credit score for years to come.

Satisfaction of Self-Reliance

There’s a unique satisfaction that comes from achieving something through your own efforts. When you successfully repair your credit using the skills and knowledge from our course, you’ll experience a profound sense of pride and self-reliance. This accomplishment reinforces your capability to handle financial challenges and build a secure future.

Course Highlights

• Expert Guidance: Learn from credit repair experts with years of experience.
• Credit Repair Software: Can be used to repair up to 2 peoples credit. Preloaded with editable dispute letters
• Actionable Steps: Follow clear, practical steps tailored to your specific needs.
• Valuable Resources: List of credit building services, discounts on our other courses
• Ongoing Support: Discounts on our live credit repair training classes

Take the First Step Today

Conclusion

Improving your credit with a guaranteed approval credit card is a practical and effective strategy. By understanding your credit situation, choosing the right card, using it responsibly, and monitoring your progress, you can make significant strides toward a better credit score.