Top Credit Cards for Bad Debt

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People with a poor credit score may experience problems with getting worthwhile credit cards. If you have your credit score below 700, you are unlikely to get any of these cards and enjoy their benefits. But there are some pretty good credit cards that you still can get, and this list of the top credit cards for bad debt will help you make your choice regarding which credit card suits your needs best. Enjoy the read!

The Discover It Secured Card

Top Credit Cards for Bad Debt

Annual fee: $0.

APR for purchases: 24.24% variable.

Credit card highlights:

  • This credit card allows you to build a credit history with a wise use of it.
  • You will receive a cash back on all purchases you will make.
  • Automatic review of your account 8 months after opening your account to see whether you are eligible to apply for a better credit card.
  • You will get free Social Security Number alerts.

This credit card from Discover is actually a good finding for everyone who has a poor credit history, and it is deservedly featured in this list of the top credit cards for bad debt. As a matter of fact, this card combines a zero annual fee, cash back on all purchases you make, and eligibility for it by almost anyone. That’s a pretty good combo for any person who has a low credit score.

Considering that this is a secured credit card, you will have to make a deposit from $200 up to $2,500. Your credit limit will be equal to your deposit. Regarding the cash back, you will have a limited quarterly 2% cash back on gas purchases and dining (limited to $1,000 per quarter). You will also get an unlimited 1% cash back on purchases from all other categories. Additionally, Discover also offers a welcome bonus – it will double the cash back you earned at the end of the first year.

Surprisingly, there are also other bonuses that you can get with this card. Once you have used this credit card for 8 months, the bank will start monitoring your history of payments. As soon as you will be eligible for updating for a better card, you will be notified about it by the bank. But expectedly enough, the APR of this card appears to be higher than the average.

All in all, this is a perfect credit card for anyone who wants to rebuild his/her credit history and even earn cash back rewards, which makes it one of the top credit cards for bad debt. On the other hand, we don’t recommend to apply for this card to those customers who have got used to carry a balance or who may seek an extended credit line.

Capital One Secured Mastercard

Best Credit Cards for Bad Debt

Annual fee: $0.

APR for purchases: 24.99% variable.

Credit card highlights:

  • The card can be managed 24/7 via a mobile app.
  • You can get a higher credit line after using this credit card for 5 months.
  • You will get a credit line of $200.
  • You will get useful tools for rebuilding your credit history.

And even though this credit card is not as close as good as the previous one from Discover, it is still deservedly included in the list of the top credit cards for bad debt. Like many other credit cards in this list, you will have to pay no annual fee for using this credit card. But, unlike the previous Discover card, you will not enjoy so useful perks and benefits.

Depending on your creditworthiness, you will have to make a security deposit of $49, $99, or $200 in order to get a credit line of $200. If you use this credit card responsibly, you will be able to build (or re-build) your credit history pretty quickly. After you have used this credit card responsibly for 5 months, you will be able to apply for a better credit limit. While the APR tends to be fairly high, this credit card appears to be among the best ones for the customers with a poor credit history.

AeroMexico Visa Secured Credit Card

top credit cards for poor credit score

Annual fee: $25.

APR for purchases: 22.9% variable.

Credit card highlights:

  • You will earn miles during your travels.
  • Your reward rate will be from 1.3% up to 2.8%.
  • The minimum deposit for this secured card is $300.

This is the only card in this list of the top credit cards for bad debt that charges an annual fee – $25. We recommend applying for this credit card only if you have no problems with paying your bills and making all necessary payments. If you are such a person, then applying for this secured card from AeroMexico may be beneficial for you.

This credit card can boast a pretty decent reward rate, which ranges between 1.3% and 2.8% and depends on how you spend your reward points – you will get the maximum reward if you will spend your points on groceries and gas. Besides, you will get 3,500 bonus miles when you make the first purchase with this credit card. Once you have applied for this credit card, it will come with a $99 certificate. But, one way or another, getting this credit card is worth only if you will spend at least $2,000 with this credit card – that’s the card’s breakeven point. Otherwise, we recommend you to choose something else from this list.

Discover it For Students

top credit cards for poor credit history

Annual fee: $0.

APR for purchases: from 14.24% variable to 23.24% variable.

Credit card highlights:

  • This credit card allows you to build a credit history with a wise use of it.
  • 5% cash back on quarterly rotating categories.
  • 1% cash back on all other purchases.
  • You will get free Social Security Number alerts.
  • Rewards for students who have their GPA score equal to 3.0 or higher.

This is just another top-notch credit card from Discover, which is deservedly included in this list of the top credit cards for bad debt. And while there are not many credit card options on the market for students, this Discover credit card – as it seems – has found its audience. Overall, this is one of the best low-end credit cards on the market.

After you have opened your student account at Discover and received this credit card, you will be able to enjoy a 5% cash back on various product categories (such as Amazon.com, groceries, restaurants, gas stations, etc.), which rotate every quarter. Additionally, you will also have your 1% cash back on all other purchases you will make. This tends to be pretty generous as for such a low-end credit card. At the end of the first year, Discover will double the cash back you earned during that year.

The other aspect of this credit card is that you may get a fairly low APR as for such a card – the APR of this card starts from 14.24%, which is quite a low indicator. Besides, this credit card allows you to enjoy the 0% introductory APR period during the first 6 months, which is another surprising thing about the Discover it Card for Students. What’s good about this credit card is that you will not be charged a late fee on the first late payment you will make.

There are also additional benefits of this credit card. You will get free social security alerts whenever you sign up on risky websites. You will also be able to freeze your account on and off in order to prevent unplanned purchases. Students who have their GPA score equal to 3.0 or higher will also enjoy a $20 cash back for as long as 5 years (the results are reviewed every year). The verdict is simple: if you are a student, we recommend you to rush for this credit card.

Citi Secured Mastercard Credit Card

top credit cards for bad credit history

Annual fee: $0.

APR for purchases: from 21.99%.

Credit card highlights:

  • This credit card allows you to build a credit history with a wise use of it.
  • Your initial deposit will be your credit line.

Unfortunately, this credit card from the Citibank doesn’t come with many benefits. The sole benefits of this card are the following ones: you can get it even if you have a low credit score, you have to pay a 0% annual fee. That’s literally all that this credit card can give to you.

Let’s look at it closer. The APR of this credit card is rather on a high side, and it doesn’t provide you with an introductory APR period. It doesn’t have any useful features you may take advantage of. Nor it offers cash back rewards. The credit line will be as big as your initial deposit.

And even though it was included in this list of the top credit cards for bad credit, we recommend applying for this credit card from Citibank only if you don’t have other options. Otherwise, we can only suggest you to look at the other cards, presented in this list of the top credit cards for bad debt.

You can also get to know more about cards from Citibank on this page.

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