Revolving Credit Cards for Bad Credit

It is difficult to get a credit card you can get approved for when you have a bad credit score. And it can be worse when you apply for a card and get rejected because it can also have a negative impact on your score because each card inquiry goes to your credit report.

There are two option that is best suited when you have a good credit and you are seeking a credit card, the first is a secured card where you can put down a security deposit that is equal to the line of credit you are seeking, the second option is an unsecured credit card that is designed for those with poor credit.

If you do not like the idea of putting down a deposit, be aware that there are fees and sky-high APRs that come with several unsecured cards for people with bad credits. But if you get a secured card, try to choose the one that reports to all the three credit bureaus so that your on-time payment can help in building your credit score.

At the end of the day, whatever one you choose, try to use the new line of credit as a building block to a stronger credit profile so that you can qualify for better cards and rates on your other loans in the future.

If you have a bad credit score, you do not want lenders looking into your credit history.

Revolving credit cards unlike regular credit cards have fewer qualifications and a different charge structure for people with bad credit because they were made with bad credit borrowers in mind so they have different features to assist them in building credit.

Revolving credit cards offer low credit restrictions, possibilities for credit improvement, online programs that are simple to use, rewards in the form of cash and over time you may be able to upgrade from an unsecured to a secured credit card.

Types of Revolving Cards for Bad Credit

There are different types of revolving credit cards and they work differently. For instance, when you get a secured revolving credit card you usually have to make a particular payment upfront. And as a line of credit, that amount is loaded onto your card. This deposit protects the lender if you do not pay your payment. TO get this credit card with a declining credit score is easier and the interest rate also is often lower.

The two types of revolving credit cards that is accessible to those with bad credit are;

Secured revolving credit cards for individuals with terrible credit, it needs a security deposit equal to the amount of credit requested

Unsecured revolving credit cards for individuals with bad credit are developed mainly for people with weak credit.

Secured Revolving Credit Cards for Bad Credit

There are those who balk at the thought of putting down a deposit on a secured card but it is important to remember that to get unsecured revolving credit cards for bad credit with assured acceptance comes with its own charges. Some of the common features of these cards are monthly service fees and high APRs. If you choose to use a secured credit card, it is important to choose wisely.

One of the greatest options are those that report to all three credit agencies to allow you pay on time and also in full while establishing a solid credit rating. Another important thing to look at for is credit cards with rewards for people with weak credit.

Unsecured Revolving Credit Cards for Bad Credit

One important thing to note with Unsecured revolving credit cards is that they provide greater risk to the lender and this is reflected in the interest rates charged. The lender will examine your monthly transaction rather than requiring deposit and then compare your income and expenditure. Because you have a bad credit already the lender is cautious of taking a chance.

The loan has a low credit limit, high-interest rate and severe terms so if you can improve your credit score, it will be worth it.

Advantages of Revolving Credit Cards

There are certain advantages and disadvantages that come with Revolving credit cards for persons with bad credit, they are;

• Borrowing costs are lower than loans
• Emergency finance can be quickly accessed
• Loan can be paid in small monthly installments
• Improve your credit score
• Anti-fraud measures
• There are lower interest rates and fees when compared to ordinary credit cards
• There is a simple and rapid approval process available as well as secured and unsecured card options

Disadvantages of Revolving Credit Cards

• There are high-interest rates in some circumstances
• High spending temptations
• Credit cards yearly fee
• You risk accumulating more bad credit if you miss payments
• Strict terms
• In some cases, you may be required to make a cash deposit to open the card

Best Secured Credit Cards for Bad Credit

If you have a terrible credit (a FICO score of less than 580) you can still get a credit card but it may not come with a lot of perks. Secured credit cards come with the best approval rates and fees. Unsecured credit cards are also an option if you have bad credit. Below is a list of best secured credit cards for bad credit that can help you improve your credit score.

1. Capital One Secured MasterCard

This is designed for consumers with bad credit score that has not been ruined. The Capital One Secured MasterCard provides a wonderful opportunity for consumers with bad credit to start rebuilding their credit. We recommend Capital One Secured MasterCard for a lower deposit because it allows you to put down as little as $49 for a credit limit of $200 unlike other secured credit cards that demands a deposit equal to the amount of credit requested.

Your creditor may give you a statement credit for your security deposit if you pay your bills on time; this is good for individuals that are cautious of using credit cards due to previous account fraud. If you are charged unlawfully, the cardholder is liable for $0 fraud liability. As a Capital One customer you can check your credit score for free without affecting your credit score.

2. Self Credit Builder Card

This is not like any other card; it is made to assist low-credit customers in saving money and improving their credit score. You are required to spend a minimum of $25 per month after the account has been activated to have the card activated. The contribution last for 24 months after which you will be given access to the funds you have accumulated.

The Self Credit Builder Card has one great benefit; there is no hard credit check when you apply.

You have option of choosing from a variety of payment terms and cash amounts that are appropriate for your financial circumstances when it comes to paying off your credit card. You credit score increases every time you make a timely payment. The funds are unlocked and the money is yours as soon as you pay the agreed-upon amount. The total will be reduced by interest and fees.

You can upgrade to a Self Visa Credit Card if you have a Credit Builder Account with Self. You must have a good standing Self Credit Builder Card, you must have made at least three months payment on time and you must have at least $100 in savings to be eligible.

3. OpenSky Credit Card

This is a secured credit card for individuals with bad credit and it is intended to assist them in establishing or improving their credit scores. You will have to put down a deposit as security. The credit provider do not check your credit score when you apply for a credit card, rather, you secure the line of credit you want with a one-time refundable deposit in the same account.

OpenSky Credit Cards automatically sends reports monthly to three major credit bureaus. This card is accepted at restaurants, stores or companies’ because it is a Visa card and you can take full advantages of Visa discount.

4. Credit one Bank Card

This is often time advertised as the best credit cards for people with bad credit. The Credit One Bank is a good option for you if you are a smart shopper because the possibility of receiving cashback is exciting. With this credit card, you earn rewards when you make certain purchases but the earnings will be more if you limit your spending to select Credit One Bank partners.

The cashback and rewards offering vary from 1 percent to 3 percent with maximum of 5 percent. Also, dedicated cashback strategists an individual who wish to use the card to restore credit will love using the card. One thing with this card is that your account will be examined regularly to see if you qualify for a credit limit increase.

To complete the online credit application pre-qualification system takes a minute and there is no negative influence on your credit score.

5. Discover It Card

This card requires a deposit to activate the account, Discover It credit card is designed for people with no credit or bad credit. It is one of the credit cards for college students with bad credit. When you make a deposit you will get a credit for the same amount. This card comes with good rewards program and it is promoted as a good way to rebuild credit.

There are certain requirements that you need to follow, Discover It will assess your accounts for eight months and if you follow the requirements you may be invited to upgrade to an unsecured card and receive your deposit back.

Applicants do not need excellent credit to get approved for this card; they will run a credit check and use the result together with your affordability and other application details. If your credit application is denied, Discover It will give you the credit score they calculated for you and also list a number of reasons why your application was denied.

6. Petal 2 Card

This is a credit card for people with terrible credit; it is an amazing credit card because it is a no-fee credit card. Petal Credit card is a good fresh-start card for individuals with bad credit that wants to improve their situation.

To know if you qualify for this card, the credit provider will take a look at your bank transaction history. Approval is not based on your credit history but on how you manage your money right now.

Petal credit card has a strong reward structure with bonus cashback from $2 to $10 percent at specified stores. You also get rewarded by the credit card company for excellent credit behavior with 1 to 1.5 percent cashback on qualified transactions.

Petal sends the three major credit agencies report on monthly basis so on-time payments will help you to improve your credit score.

There are no late or returned payment fees and no yearly or foreign transaction costs. Petal 2 Credit Cards has a $500 minimum credit limit. The application is meant to match your financial condition with a Petal credit card offer

7. Milestone Gold MasterCard

This credit card is good for individuals who have bad credit or little or no credit history at all. It is good for people that want to enhance their credit option and don’t have many options. Milestone Gold MasterCard is an Unsecured credit card so you do not have to deposit any amount.

This credit card comes with zero liability insurance and identity theft protection. The pre-qualification process is fast and it has no effect on your credit score.

Milestone Gold MasterCard sends monthly reports to the three major credit bureaus so those who manage their credit effectively can improve their credit score over time.

8. Fingerhut Credit Account

This can be used to repair credit; it is a revolving credit account instead of being an installment account. Those who shop for products on the credit provider’s website are given credit. On their website, there are over 450,000 products from renowned manufacturers like Samsung, KitchenAid, etc.

There are no yearly or over-limit fees, Fingerhut account comes with affordable monthly rate, access to customer’s assistance 24 hours a day and 7 days a week. To know the option you are eligible for, you will have to submit an application to Fingerhut. For those who do not qualify for an Advantage Credit Account, there is an automatic FreshStart Installment Loan for them. Applicants who have been denied credit by other lenders are safeguarded.

9. First Progress Platinum Selection MasterCard

First Progress credit card provides secured credit so you must make a deposit to activate the card. It is provided to help individuals in establishing or rebuilding their credit. You can generally boost your credit limit if you manage your account effectively without making a new deposit. With First Progress credit card, your credit limit is $5,000 but you can grow it over time. You can request an increase in your credit limit every six months through your credit provider.

Cardholders can access the mobile app as well as the online account 24 hours a day and 7 days a week. Applicants that want to utilize the card to develop credit can see their credit scores in real-time for free. To secure your credit line you will have to make a refundable deposit when you apply. To receive your deposit refund, pay down your entire payment.

10. Destiny MasterCard

This offers unsecured credit to individuals with good to terrible credit and also individuals who have filed for bankruptcy. Destiny MasterCard is designed to provide a small line of credit to individuals that are working to rehabilitate their credit, pre-qualification is provided within a minute after applying for the card. To preserve your credit rating, the no-frills card provides pre-qualification with no hard credit check.

This credit card comes with zero-dollar liability protection, anti-theft features and free access to your FICO credit score. Aside a $300 credit limit and interest rates that is up to 24.90 percent, this credit card does not offer any awards or additional benefit.

Unsecured Revolving Credit Cards for Bad Credit

1. Surge MasterCard

This card offers zero fraud liability as well as other standard MasterCard features. Although the card initial credit limit is minimal but if you pay your account on time and consistently for six months you may earn a greater limit. The Surge MasterCard can be manage online through the mobile app, you make timely payments and see your account balance as well as other things.

This card provides free credit building and credit score monitoring, you will be covered if you lose your job, get hospitalized.

2. Reflex MasterCard

This card offers a credit limit range greater than others, it allows you prequalify in a minute and maintains your low credit score. This card has an annual fee, a foreign transaction fee, but no fraud liability. You qualify to avoid monthly maintenance cost depending on your credit score.

3. FIT MasterCard

FIT MasterCard sends monthly reports to all three credit agencies so you can apply it to improve your credit. Your monthly maintenance fee is waived for the first 12 months after the account is opened but the card has a one-time processing fee, and an annual fee. There is also costs for cash advances, foreign transactions, late or return payment and additional cards are included in the card’s fee.

Cardholders earn a $0 fraud liability as well as automatic evaluation for a higher credit limit after six months of on-time payments.

FIT MasterCard is issued by the Bank of Missouri and it comes with credit protection against death, job loss, hospitalization or disability.

4. Total Visa Card

This credit card has a simple application process and prompt approval, the grace period is 21 days, it is one of the lowest in this list. The APR on Total Visa Card is greater than some others. Like several other cards, it has an annual fee, a monthly service fee, one-time program fee and cash advance fee but all this is waived for the first year.

Fees are imposed on late and returning payments, a program fee is charged by the card and it is deducted from your original credit limit. You should easily meet your monthly payment obligations because the initial credit limit is minimal.

5. Progress Credit Card

Regardless of your poor credit history, this credit card works with two issuers to supply you with a Secured MasterCard and an Unsecured Visa credit card. The Bank of Missouri provides an Unsecured Visa card with security features and nationwide acceptance. The Unsecured card is one of the most straightforward to receive. Both cards can help you establish credit because your monthly report is sent to the three main credit agencies.

If you get approved for the unsecured card, you will be charged a one-time program fee but note that this card is not accepted at gaming establishments, gas stations or overseas transactions.

6. Credit One Bank Platinum Visa Card for Rebuilding Credit

This is the only card on this list that offers cashback benefits. The credit card has free Experian credit score, no fraud liability and monthly credit line upgrades. It takes about a minute for pre-qualification and there is no impact on your credit score.

The card has an annual fee charge, overseas transaction, cost for cash advances, late payments and return payments. You can choose your payment due date after the initial billing term.

7. First Access Visa Card

To qualify for the First Access Visa Card, applicant must have a bank account. This is a full-featured credit card that commonly approves applications from consumers that have bad credit. You can choose from six different card designs when applying for this card.

The First Access Visa Card is a high APR and has a lot of fees like an annual fee, one-time application fee, The late and return payment fee, monthly servicing and cash advances fees are waived for the first year. Additional cards express delivery, credit limit hikes and duplicate copies of any monthly billing statement come at a cost.

8. Indigo MasterCard

You can apply for the Indigo MasterCard for Less Than Perfect Credit if you have a blemish credit history. This credit card is issued by Celtic Bank in Lake City. You can easily prequalify to check if you can move forward with the application. This card doesn’t have an annual fee, the first year’s cash advance cost is removed but there are fees for returned payment and overseas transactions.

9. Milestone MasterCard

The Bank of Missouri will evaluate your application, and you can prequalify in few steps. If the issuer cannot match you to one of its own cards, you may be pre-qualified for another bank’s card.

This card comes with an annual fee and a foreign transaction fee. There is also cash advances cost, over-limit transaction cost, late and return payment cost but no monthly maintenance fee.

There is a mobile app for this card where you can gain access to its features and the card will automatically protect you if it is stolen or lost.

10. Fingerhut Credit Account

This is not a credit card but rather it is a credit card account, it allows you to charge Fingerhut online purchases. This account helps in the development of credit by allowing you pay your bills on schedule. You may qualify for a larger credit limit after three on-time payments. There are two fees associated with this account late and returning payments, the card’s annual percentage rate is fixed.

You will be automatically evaluated for a Fingerhut FreshStart Account if you do not meet the requirements for this account. A one-time purchase program might help you rebuild your credit.

What is Credit?

Revolving credit is a type of loan that lets you borrow a specific amount of money regularly; you can borrow money until you get to your credit limit which is the maximum amount you can borrow. Once you have paid your outstanding balance plus any interest you can borrow again.

You can make a minimum payment on revolving credit and carry or revolve the rest of your debt from month to month or from billing period to billing period. You will need to pay interest if you have a balance on a revolving account.

What is Bad Credit?

Bad credit refers to an individual’s history of not paying bills on time and also the possibility of doing so in the future. A bad credit score is the result. A company can also have bad credit if their payment history as well as their current financial status is not in good shape.

An individual or a company with bad credit will find it difficult to borrow money because they are regarded as risk when compared to other borrowers that are not in their situation

How Revolving Credit Works

There is a credit limit that is placed on a revolving account; this is the maximum amount you can spend. You can “revolve” the balance by carrying it over from month to month or from a billing period to a billing period or you can pay off the balance in full at the conclusion of each billing cycle. You will pay a minimum payment each month you revolve a balance. The amount could be $25 or a percentage of your overall balance whichever is higher. The details of your revolving credit agreement should be in the fine print.

Sum that is carried over from month to month will attract interest.

Credit Facility and Advantages

Revolving Credit Facility (RCF) is a loan that allows a person to take money out, spend it, repay it and takes it out again, it is a revolving loan just as the name implies. It is designed in a way you can borrow from a pre-determined purse, you can borrow whenever you need it with minimal effort.

Revolving credit facility has several advantages but one of its main advantages is its flexibility of an alternative financing solution. Below are some of the advantages of revolving credit facility

1. Accessible Cash Flow

You have access to a pre-approved, certified and available line of credit. Cash is the first advantage with revolving credit facility. Unlike traditional loans and line of credit that require application period, wait time and approval, you can access your money at any time and for any reason.

Another advantage is that you have a cash flow that doesn’t require any particular procedures to get so you have a lot more resources available

2. Low-Interest Rates

Interest rates on repayment loans are often time a source of concern for businesses and that how banks make their money, what they do is loan you money and then charge you for it. Revolving credit facility (RFC) operates in a unique way so you can use assets to lower interest rates, acting as a sort of security for the bank. This is a typical asset-secured revolving credit facility in the UK

At the end of the day, an RCF will have cheaper interest rates compared to a typical credit card. It enables it to be a long-term cost-effective resource that business needs.

3. Easy Repayments

The major issue for anyone considering a personal loan is the expensive repayment terms. The fact is that banks want their money and they want it immediately, they really don’t care what happens to you as a result.

A revolving credit facility is open-ended and resolving. You can take your time to repay the money without jeopardizing your business’s financial stability.

Cash flow is a common problem for businesses, if you run a business with seasonal earning which change that can be an issue since it amounts to cash shortage but revolving credit arrangement can be beneficial in situations like this. You can even out the number of resources you have available over the period of a year since you have access to cash flow.

When you borrow money from a revolving credit facility to cover cash flow issues, you can still make all of your regular payment without any stress.

How to Check your Credit Score

A lot of people tend to believe that if you look at your credit reports from the three major credit bureaus you will see your credit score but that is not entire true. Credit scores are not normally included in credit report from the three major national credit bureaus. Before we proceed further, let clear out some things regarding credit scores

There is no single credits score because credit scores are calculated to reflect your credit risk or the possibility of timely payment of your debt. How your credit score is calculated is by using a formula based on the information in your credit report. Here are few suggestions on how to know your credit score;

Firstly, you need to examine your bank account, credit card or loan statement. Banks and several credit card companies and loan organizations have started providing customers with credit ratings. You can get this on your statement or you can log into your account online to get it.

Purchase credit scores directly from any of the three major credit bureaus or from a third-part supplier like FICO

Use a credit score service or a free credit score site; users can get a free credit score on some site. There are some sites that can offer credit score to consumers but a certain fee or monthly subscription. It is good to check your credit ratings and also to monitor your credit report

How to Deal With Bad Credit

Dealing with bad credit it’s not so easy, there are some vital things you need to know that can help you because it’s not something you can avoid or run away from. Those avoidance methods doesn’t works anymore

If you are trying to get employed, over half of the companies will now request a credit check so this goes a long way to affecting whether or not you will be employed.

If you want to rent a place, the landlord or the management company would need a credit check

If you want to buy a car or a house, you will be paying a much higher interest rate if you qualify for a loan. And if you are insuring your home or car you would also pay more.

The good thing is that every bad credit problem has a solution but you must first apply for a constriction on your existing financial situation so as to avoid further damaging of your credit and draining your finances.

For people that have bad credit, it’s important that you should start considering your future which will certainly entail a higher credit profile than the current one you have. To dealing with bad credit, below are the things you must do.

1. Check your Credit Report

First, you have to know that repairing your credit from the subprime (under a 620 FICO) to sublime (above a 620 FICO) can be a long process (better than 740 FICO). There are no instant solutions or quick fix for this issue, the only way forward is a long hard climb upward.

Your credit report can serve as a wake-up call for your expenditure problem written plainly in black and white.

To know your credit report is eye-opening because non-payments on your account or debt do not disappear from your credit history for seven years so you have to act now because having a bad credit can affect every aspect of your life from where you work to where you sleep and what you eat.

i. Stop Accumulating Debt and Overspending

One of the ways you can improve your credit or start dealing with bad credit is to stop expanding and feeding your debt

Keep your cards looked away and refuse the urge to chop them up

15 percent of your credit score depends on the length of your credit history (the longer, the better)

Canceling your oldest credit cards could lower your credit score

You can create a budget that breaks down your cash inflow and outflow to the dollar

Start bargaining with your creditors. These are some of the ways you can negotiate with your creditors

ii. Modified Payment Plan

You can request a lower interest rate and also that a fee or penalty be waived on your account, the fact is that your request may or may not be granted but you can at least try.

You can also inquire how you may spread out your payments so you can be able to manage them properly. Most creditors may be willing to work with you because they know that any payment is better than no payment at all.

c. Debt Settlement Plan

You need to have a debt settlement plan, this will certainly drop your credit score more than a modified payment plan.

If you start negotiations, you might be able to gather a counteroffer by offering a debt collector half of what you owe.

2. Credit Counseling Organization

Speaking to a credit counselor can help a great deal, it can at the very least provide you with someone to help bounce debt-reduction ideas and technique off. You may not be able to do it on your own because you may be pressured or threatened by commission-driven collectors so having some with the skillset to help you negotiate can come in handy

3. Debt Management Plan

You need to create a debt management plan so that every month, you can provide money to a debt management organization which in turn pays your creditors. These debt management organizations claim to be debt experts. They can cut your interest rates and monthly payment, they can also get some fees canceled by working on your behalf but their service comes at a fee.

FAQs about Revolving Credit Cards for Bad Credit

1. Is having credit good?

Revolving credit card is a way to go when you want freedom to spend on credit every month without a specific objective in mind

2. Can Revolving credit cards be used repeatedly?

Payments that are made on revolving credit accounts are available be borrowed again. As long as you do not exceed the maximum limit, the credit limit may be used repeatedly.

3. What are 3 types of revolving credit?

(1) Personal lines of credit (2) Credit cards (3) Home equity line of credit (HELOC)

4. Is a credit card a revolving credit?

There are two most common types of credit accounts; revolving credit and installment credit. Credit cards are considered as revolving credit

5. How does revolving credit facility work?

Revolving Credit Facility (RCF) is a type of credit that enables a person to withdraw money, use the money to fund their business, repay it, and then withdraws it again when it is needed.

6. What is not a revolving credit?

This is credit facility granted on one-off basis and disbursed fully.

7. What is an example of revolving credit?

Credit cards and home equity lines of credits (HELOCs). These are the two most common type of revolving credit