Do you have bad credit? Then you know it is very hard to qualify for a credit card that is not a secured card which requires a deposit. But at the same time, being approved for a credit card is vital to your efforts to rebuild your credit. Having a credit card will help you to increase your account history and develop a payment history, both of which are necessary to improving your credit score.
Certainly, secured cards are offered to those with bad credit, but they require a deposit that becomes your credit limit, and these products can have very high interest rates and fees. Thankfully, there are now several standard, non-secured credit cards that are available to people with bad credit which don't require a deposit. In addition, there are prepaid debit cards that offer much of the convenience and security of a credit card. With prepaid cards, customers must load funds in advance, which can then be used to make purchases where debit or credit cards are accepted. And thankfully, there is no way to incur debt or interest charges when you use a prepaid card.
Here are the top five cards for applicants with bad credit, that you do not need to pay a deposit to open an account:
Milestone Gold MasterCard
The Milestone Gold MasterCard is offered to applicants with bad credit, and has very reasonable terms for a product of this type. First, cardholders get to create their own custom card design at no extra charge. Cardholders also receive all of the benefits of the MasterCard Gold including the MasterCard Global Service program, which is available 24 hours a day, 365 days a year. It offers emergency replacement lost or stolen cards, emergency cash advances, ATM location services and account-related information including any applicable card benefits.
The standard interest rate for both new purchases and cash advances is 23.9% APR, and there is a 25-day grace after the close of each billing cycle during which cardholders can avoid interest by paying their balance in full. The annual fee for this card is either $35, $59, or $99 (with a $75 fee the first year). The fee you are assessed will depend on your credit worthiness.
Credit One Bank Credit Card with Gas Rewards
This is one of the rare credit cards available to those with poor credit that also offers rewards. With the Credit One Bank Credit Card with Gas Rewards, you will receive 1% cash back on eligible gas purchases, so long as your account is not delinquent. You can get pre-qualified for this card without affecting your credit score, and if you make your first six payments on time, Credit One will give you an opportunity for a credit line increase. This card also allows you to view credit information for free with its online monthly credit score tracking feature.
The interest rate for this card is between 17.9% to 23.9% APR, and there is no grace period offered, so interest is calculated based on the posting date of each transaction. There is an annual fee of between $35 and $75 for cardholders first year, and $35 to $99 thereafter, depending on your credit history. In addition, there is a $19 annual user participation fee.
Rush Prepaid Visa Card
The Rush Prepaid Visa was created by recording industry mogul Russell Simmons, and is one of the leading prepaid debt cards offered. Cardholders start with a one-time fee of between $3.95 and $9.95 when they first load money onto their card. Then, cardholders have their choice of two different plans. The Pay As You Go Plan has no monthly fee, but there is a $1 fee per transaction, with a maximum of $10 each month. Otherwise, their Unlimited Plan has a monthly fee of $5.95 with direct deposit, and $7.95 without. With this plan, there are no transaction fees and no ATM withdrawal fees for any plan for in-network usage.
PEX Visa Business
The PEX Visa Business card is offered to business users who need to fund company purchases made by themselves and their employees. With this card, funds can be instantly dispersed to employees, and the primary account holder can control their spending limits. This card includes monthly reporting, and there is no credit check or payment reporting, so it has no effect on your personal or business credit. There is a one-time program account set-up fee of $49.95, and a monthly fee of $7.50 for each card; however new cardholders receive a two month free trial period after they enroll. Otherwise, there are no new card fees, transaction fees, card replacement fees, or other monthly maintenance fees. Finally, those who are part of a qualifying non-profit or charity organization may be eligible to receive discounted pricing.
READYdebit Visa Prepaid
The READYdebit Visa Prepaid card offers new account holders an instant account number. Other features include free direct deposit of pay checks, benefit checks, and tax refund checks. Cardholders also enjoy online bill payment & mobile account access. With their Platinum and Select plans, there are no purchase transaction fees, but they have monthly fees of $14.95 and $9.95 respectively. Their Control plan simply has a one-time $4.95 charge and each transaction has a $1 fee. Cardholders who choose the Platinum plan also receive free credit monitoring service. Finally, cardholders can choose the blue or pink design of their choice.
