The Military Wallet has partnered with CardRatings for our coverage of credit card products. The Military Wallet and CardRatings may receive a commission from card issuers.
If your credit score is in the gutter due to mistakes you’ve made in the past, you are probably looking for a way to turn things around.
Unfortunately, it can be difficult to get approved for a credit card or loan when your credit is already in bad shape. Banks and lenders see your score and deny you right away, mostly because they believe extending credit your way comes with too much risk.
But, how can you improve your credit when banks won’t give you the time of day?
This exact situation plagues so many consumers who wish to do better but can’t find anyone to give them a chance.
Fortunately, there is a way to build credit when your credit isn’t that great.
With credit cards for bad credit or “bad credit credit cards,” you can ease your way back into credit use and potentially rebuild your credit slowly over time.
While many credit cards for poor credit are secured credit cards that require a cash deposit, the cards on this list are unsecured credit cards for bad credit with no deposit.
What this means is, you can qualify for a traditional card without any requirement to put down collateral.
What is Bad Credit Anyway?
Before you decide to apply for poor credit credit cards, it’s important to know whether doing so is entirely necessary.
In other words, is your credit poor enough to merit credit cards for bad credit?
Or, are you doing better than you think? If you want to find out, your first step is getting a free copy of your credit score or an estimate of your credit score through a service like Credit Karma.
Seeing your credit score (or an estimate of your score) in black and white will help you determine where you stand.
According to myFICO.com, “poor credit” is typically considered any FICO score that is at 579 or lower.
FICO scores in the 580 to 669 range are also teetering on the edge and considered “fair.” While consumers with scores below 579 are likely to be rejected for new credit altogether, borrowers in the “fair” range have a better chance but no guarantees.
If your score is above 670, on the other hand, you may not need a credit card for bad credit at all.
Get your free score from Credit Karma today >>
Compare the rates, fees, and rewards of top credit cards for military servicemembers and veterans, including cards with waived annual fees under the SCRA.
Best Credit Cards for Bad Credit Borrowers
Once you’ve determined how your credit score looks, it’s smart to research credit cards for low credit applicants and other options for consumers with low credit scores.
For the purpose of this article, we’ve rounded up some of the top options in this space.
If you’re ready to rebuild your credit with a poor credit credit cards, here are some of your best options:
- Total Visa
- FIT Mastercard
- Reflex Mastercard
- First Access Visa
- Surge Mastercard
Total Visa
Here’s a quick overview of the main features you can expect to see with the Total Visa:
- Manageable monthly payments
- A checking account is required
- An $89 processing fee is charged to open your account
- The APR for purchases and cash advances is 29.99%
- An annual fee of $75 applies the first year and $48 per year thereafter
- $6.25 monthly servicing fee applies after the first year
- Late payment fee and returned payment fee of $38
While the Total Visa does come with higher fees than some other card options you’ll encounter, the fact that it’s not a secured credit card means you won’t have to put down a cash deposit.
And since the Total Visa carries the Visa name and prestige, you’ll be able to use it all over the globe as well as for online purchases.
Advantages of the Total Visa:
- This card is available for consumers with poor credit
- You can apply online
- Reports to all three credit bureaus
- Doesn’t require a cash deposit
Disadvantages of the Total Visa:
- Charges a $89 processing fee
- Ongoing fees are also high
- The ongoing APR (29.99%) is high
FIT Mastercard
FIT Mastercard is another option that should be on your radar if you’re looking to rebuild your credit score with a credit card.
Here’s why:
- Initial credit limit of up to $400
- Variable rate of 29.99% for purchases
- $89 initial processing fee
- $99 annual fee
- $6.25 monthly maintenance fee after the first year
- Late and returned payment fee of $38
While the FIT Mastercard can be pricey, it does offer the opportunity to rebuild poor credit or build new credit over time. The Mastercard name will also make it easy for you to use your card anywhere, including for online purchases.
Advantages of the FIT Mastercard:
- Reports to all three credit reporting agencies
- Easy to qualify for
- Initial credit limit up to $400
Disadvantages of the FIT Mastercard:
- $89 initial processing fee
- Other fees including an annual fee and a monthly maintenance fee after the first year
- High variable APR of 29.99%
Reflex Mastercard
Another card worth considering, the Reflex Mastercard comes with a number of benefits to help you rebuild your credit. Here’s what you need to know about this credit card:
- Manageable monthly payments
- A checking account is required
- You may qualify for an unsecured version of this card, but you could be assigned a secured version depending on your creditworthiness
- The variable APR for purchases and cash advances is 29.99%
- An annual fee of $125 applies the first year and $96 per year thereafter
- $10 monthly servicing fee applies after the first year
- Late payment fee and returned payment fee of $38
While the Reflex Mastercard does come with higher fees than most unsecured credit cards, it doesn’t charge a processing fee like some other credit cards for bad credit.
This card should also be easy to qualify for. And, once your credit is improved, you can close your account and transition to an unsecured card with better benefits.
Advantages of the Reflex Mastercard:
- Reports to all three credit bureaus
- Easy to qualify for
- Enjoy the perks of the Mastercard name
Disadvantages of the Reflex Mastercard:
- High annual fee and service fee after the first year
- The variable APR of 29.99% is high
- You could be offered a secured version of this card if you don’t qualify for the unsecured version.
First Access Visa
First Access Visa is a card could be the card to help you get started on your quest for better credit. Here are the main terms to be aware of with this card:
- Variable APR of 29.99%
- $89 processing fee
- $75 annual fee the first year and $48 per year thereafter
- Late and returned payment fee of $38
- $6.25 monthly service fee applies after the first year
If you’re considering the First Access Visa, it’s important to look closely at the ongoing fees and interest rate. While credit cards for bad credit are expensive to begin with, having a credit card will become much more expensive if you carry a balance from month to month.
Your best bet with the First Access Visa is using it to build your credit quickly so you can transition to a different card with lower costs.
First Access Visa Advantages:
- Easy to qualify for with poor credit
- The prestige of the Visa name
- Reports to three credit reporting agencies
First Access Visa Disadvantages:
- Initial $89 processing fee just to open your card
- High annual fee and monthly maintenance fee after the first year
- High variable APR of 29.99%
Surge Mastercard
If you care more about convenience than cost, the Surge Mastercard could be worth exploring. Here’s the info you need to know about this credit-building card:
- Checking account required
- If you don’t qualify for their unsecured card product, you may be offered a secured credit card from the same bank
- Variable APR of 29.99%
- $125 annual fee the first year and $96 per year thereafter
- $10 monthly maintenance fee after the first year
- Late and returned payment fees of $38
The Surge Mastercard offers an easy online application process that anyone can figure out. Best of all, you could be approved for your new card in a matter of minutes.
Initial costs are high, but you can use your card to build your credit score and transition to better cards over time.
Surge Mastercard Advantages:
- No initial processing fee
- Easy to qualify for with poor credit
- Can be used everywhere Mastercard is accepted
Surge Mastercard Disadvantages:
- High annual fee and monthly maintenance fee after the first year
- High variable APR of 29.99%
- Checking account required
The Bottom Line
If you are tired of suffering from the effects of poor credit, it’s time to take matters into your own hands.
Fortunately, an array of lenders created credit card offerings for people just like you — people who have made mistakes in the past but are ready to improve their lives.
As you compare credit cards, make sure to read through all the terms and conditions. Understand any fees that are charged and when, and make sure you know how interest will be charged if you do carry a balance.
While credit cards for bad credit may be expensive, they are often the only option available to people trying to overcome credit mistakes in the past.
With enough responsible credit use under your belt, you can get your credit back on track in no time.
The Military Wallet has partnered with CardRatings for our coverage of credit card products. The Military Wallet and CardRatings may receive a commission from card issuers.
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