Using a bad credit credit card | thimbl. rebuild your credit is a smart way to get back on track financially. But you’ll want to be careful to choose a card that fits your needs.
What cards can I get with a 550 credit score?
If you have a poor credit rating, you may not qualify for a credit card with the best terms. Bad credit credit cards usually have high interest rates and fees. The best cards for you will be those that have a low credit limit and require you to make your payments on time.
There are also unsecured cards for people with bad credit. They can be more convenient than secured cards, but they usually come with high interest rates and fees. They may also require a deposit.
The NerdWallet Credit Cards team evaluates bad credit credit cards for their interest rates, fees, and other important features. They also evaluate the availability of free credit education, as well as free credit scores.
Secured cards, on the other hand, are easier to obtain. They require a security deposit, which can be returned if you close the account. Some credit cards for people with bad credit even prequalify online without a hard inquiry. But they usually only have a small borrowing limit.
You’ll want to pay off your balance in full each month to avoid interest charges. If you miss a payment, your credit score will take a hit.
You may be able to qualify for a student credit card, which often has no annual fees. These cards often have bonuses, such as cash back. But you should remember that rewards only benefit you if you don’t carry a balance.