The best credit cards to help you rebuild your credit

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Everyone should aim for a good credit score because it can lower the cost of everything from your mortgage and car loan to your credit card balances. But sometimes life has a way of tripping us financially. If you’ve missed a payment or two, if you’ve been severely past due on debt, or even filed for bankruptcy, you will need to put in some effort to rebuild your credit score.

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Learn: Top Purchases You Should Always Make with a Credit Card

Since most major lenders won’t offer you an affordable loan if you have bad credit, you may need to use credit cards specifically aimed at people with credit problems to rebuild your score. Just be aware that not all of these types of cards are good choices, as many come with high fees or other restrictive covenants. Here are some of the best options available for those looking to rebuild their credit.

Last updated: November 3, 2021

Natakorn Ruangrit / Getty Images / iStockphoto

Natakorn Ruangrit / Getty Images / iStockphoto

AvantCard

Most credit card companies will not approve customers with low credit, forcing them to use secured credit cards. The AvantCard may be a good option for those who do not wish to go the secure card route, as it is a true traditional credit card, offering credit limits of between $ 300 and $ 1,000.

The card allows online applications and payments and has no hidden fees, mandatory deposits or liability for unauthorized charges. For some clients, there is also no annual fee, although you should check during the application process as the annual fee can go up to $ 59. Applicants should note that the APR on this card ranges between 24.99% and 29.99%, which is sky-high. However, that is to be expected for cards that serve customers with little or no credit – which is one of the many reasons you should be looking to improve your credit.

See: 4 Great Credit Cards For Daily Groceries

Johan Swanepoel / Shutterstock.com

Johan Swanepoel / Shutterstock.com

OpenSky secure

The OpenSky Secured Card, as the name suggests, is a secured credit card, which means you can only debit the amount you have on deposit with the bank. It’s the type of starter credit card that can help you build a history of on-time payments and responsible use of credit. The OpenSky Secured card can be a good option for those looking to rebuild their credit, as your timely payments will be reported to all three credit bureaus, helping your score to climb over time. You will need to deposit at least $ 200 to get started with this card, and you can keep tabs on your account online or through the card app.

Read more: The Fastest Ways to Pay Off Your Credit Card Debt

Jonathan Weiss / Shutterstock.com

Jonathan Weiss / Shutterstock.com

Discover the secure credit card

Another option that requires a deposit but offers a host of benefits for cardholders is the Discover it Secure Credit Card.. Perhaps the most important for cardholdersDiscover automatically examines the status of your card each month starting eight months after opening the account to determine if you qualify for a card with no security deposit required. There is also no credit score required to apply. Beyond that, the card has no annual fee and pays 2% cash back at gas stations and restaurants each quarter, up to a maximum of $ 1,000 in total spending. Additional purchases are rewarded with 1% Cash Back and Unlimited Discover Cash Back at the end of your first year.

See: Why It’s Always Better To Use Your Credit Card Over Debit Card

Goran Bogicevic / Shutterstock.com

Goran Bogicevic / Shutterstock.com

Capital One Platinum Mastercard

Capital One’s Platinum Mastercard is one of the easiest cards to get in the bank’s stable, making it a perfect option for anyone looking to replenish their credit with an unsecured credit card. While the card isn’t feature-rich, it has an annual fee of $ 0 and is backed by a $ 0 fraud liability policy. Capital One also reviews accounts for potentially higher lines of credit in as little as six months. The card also offers additional features, including a mobile app, account alerts, and the ability to view your credit report for free.

Check Out: 90 seconds to increase your credit score by 200 points

ljubaphoto / iStock.com

ljubaphoto / iStock.com

SavorOne Rewards for Students

Students are a bit of a stalemate when it comes to applying for credit cards as they often have no income and usually have limited credit. A growing sub-sector of the credit card industry is focused on providing cards that students can qualify for and that also offer benefits that students will enjoy. The SaverOne Rewards for Students card has no annual fee and offers a pretty incredible range of rewards for a student card, including unlimited 3% cash back on restaurants, entertainment, groceries and services. popular streams, plus 8% cash back at Vivid Places and 1% back on all other purchases. The card does have a high APR, however, at 26.99%, so you’ll want to be sure you can pay your fees before you apply for this card.

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This article originally appeared on GOBankingRates.com: The Best Credit Cards To Help You Rebuild Your Credit


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