What Is the Easiest Credit Card to Get with Bad Credit

A credit card is a payment card that allows you to borrow money from your issuer. The cards look like debit cards in appearance, but they operate differently. Usually, the cards allow you to get revolving loans from the issuer. You have to part with some interest rate at the end of the billing cycle. The interest rates depend on the FICO scores you have at the time of application. We shall look at the easiest credit card to get with bad credit shortly.

A bad credit situation can hurt you, especially when you require a loan to fund some staggering projects here and there. Most financial companies are never ready to give loans and lines of credit to people with bad scores. That is because such people pose a significant threat to financial companies since they have the potential to default at any time.

Most people enter into a bad credit situation without their wish. Imagine taking a loan to fund your education as a student and failing to get a job after finishing your schooling. You end up with no money to service your loan, only to end up in the negative listings of credit bureaus. Even though someone can get out of the black list, it is usually not easy as it takes some time.

How does a credit card work?

The operation of a credit card is not that complicated. First of all, you have to apply for the card and pass the checks done by the issuers. Usually, they check your FICO scores, although you can quickly get approved for a credit card with bad credit from various financial companies. You must activate your card to start utilizing it for various transactions when you get your card. You can either activate it online or at a branch.

Usually, when you get your card, you receive a credit limit. The limit refers to the maximum amount you can borrow with our card. The borrowing limit depends on the number of your FICO scores or the security deposit you make. As you use the card, your limit drops with time, and once you hit the maximum borrowing limit, you cannot borrow again until you repay your loan.

A credit card allows you to buy goods and services online and in physical stores. When purchasing online, you have to input your card number, expiry date, and the security code on the spaces provided. After that, the merchant receives their funds, and you can get your item or service. Suppose you are paying for a particular service. In that case, you can set up automatic transactions so that you do not have to repeat transactions now and then.

As you use your card, you have to note that your issuer will be reporting the card usage to the credit bureaus. The government entrusted these bodies to receive and record how borrowers use their cards. The bureaus then come up with your scores and credit report.

What is the easiest credit card to get with bad credit?

easiest credit card to get with bad credit

If you have bad scores, you must be waiting to know how to get a credit card. Indeed, getting a credit card when you have bad scores is not easy. However, some cards are suitable for your case.

You can apply for a secured card if you have a bad credit situation. A secured credit card does not check your FICO scores. Thus, you can quickly get it, especially if you have a security deposit. The deposit acts as a guarantee. If you cannot pay the debt, your card issuer can recover their money.

In most cases, you get a secured credit card for rebuilding credit. By using the card, your issuer reports your card usage to the credit bureaus, and your scores can increase slowly by slowly. Even though you will not see an instant score increase, you will be able to recover from a bad score situation after several months, usually six months.

Another borrowing card that is easy to get is an unsecured credit card for bad credit. Most issuers do not bother to check your scores since they know they are in the worst state. Making a hard inquiry will drop your scores even further.

How to get a secured credit card?

Since you know that the most straightforward card to get when you have bad credit is the secured one, then the next thing you should know is how to get it. First, you have to do your home well on the available cards before applying. You can apply when you get the most appropriate card for your case.

Before getting your card, you must open a checking account. That is where you will deposit your security before getting the card. You can open a checking account either online or at a convenient branch.

Usually, financial companies require you to pay the deposit amount before sending you the card. You can get a temporary card as you wait for the tangible card and only use it for online purchases. That is because the card has the card number, the expiry date, and the security code. Once the actual card arrives, the virtual one becomes inactive. Upon arriving, you have to activate it online by entering the card details on the fields provided.

Remember, you can also apply for your card at a physical branch. Some financial institutions only allow you to apply at their mortar and brick branches. According to federal government requirements, you should walk in with your security deposit and the necessary documents.

Where can I get a credit card?

Another fundamental question anyone looking for a credit card should ask themselves is where they can get a credit card. We know that banks are the major issuers of credit cards. However, you can also get the cards from credit unions. These are member-owned financial institutions whose aim is to uplift their members financially.

By the way, borrowing cards from credit unions come with low-interest rates. The institutions are not profit-oriented. Therefore, you can get an instant credit card approval for bad credit with no deposit if you have good scores.

Also, you can get a credit card from mobile wallets. A good example is the Venmo credit card from Venmo, a financial service from PayPal. The card requires FICO scores of at least 690. You can use it for various financial transactions, including splitting bills with your friends at restaurants, movie theaters, etc.

Additionally, we have financial technology companies that also issue credit cards. A good example is Chime which issues the Chime Credit Builder Secured Visa® Credit Card. Since the card is secured, you do not need any FICO scores. It is one of the best cards for building credit since it does not require a minimum deposit. Thus you can deposit any money you feel is suitable for your case.

What differences are there between unsecured and secured credit cards?

Secured and unsecured credit cards are the main types of borrowing cards. But what is the difference between secured and unsecured credit cards? Several differences arise between the two cards, and they include the following.

  • Secured cards require a security deposit on your account. The deposit varies from one issuer to the other. However, you can decide on the amount of deposit to make with most issuers. Unsecured credit cards do not require a security deposit when getting them.
  • Depending on your deposit amount, you can determine your borrowing limit with a secured card. However, your scores dictate the credit limit for unsecured ones. The more your scores, the higher your borrowing limit and vice versa.
  • Another significant difference between secured and unsecured credit cards is that secured card issuers do not contact a hard credit check. In contrast, unsecured credit cards must contact hard inquiry before giving you a credit card.
  • Secured credit cards are mainly for building FICO scores, while the unsecured cards mainly help you borrow when you need money.

How different are credit cards to debit cards?

A debit card is also a product you can get from banks and other financial companies to buy goods and services. Some people get confused by the two. The differences include the following.

  • Debit cards allow you to use your checking account balance, while credit cards allow you to borrow money from your issuer.
  • Credit cards report to the bureaus while debit cards do not.
  • When applying for an unsecured credit card, you must undergo a credit check, while debit cards do not require scores.

Bottom line

Credit cards are payment cards that allow you to borrow finances from your issuer. You can get a secured or unsecured credit card. The unsecured credit card requires a borrowing history, while secured ones require a security deposit. Depending on how your card issuer operates, you can apply for a credit card online or at a physical branch. Secured credit cards are the best for building credit and are the easiest to get.