Consumers from all backgrounds struggle with money issues at some time in their life. One of the best ways to rebuild a score is to get positive reports to the bureau. There top credit cards for bad credit can help a consumer do that.
Consumers have the choice of three types of cards; unsecured, secured and prepaid. The least helpful of the three is the prepaid cards. Prepaid accounts do not turn information into the bureaus which means no positive marks will appear on the report. An unsecured account is when a bank extends a card to a consumer without any deposit. The final type is the secured account. A secured account requires a deposit from the consumer that equals or is slightly lower than the card balance.
The best APR on the market, 7.9%, for secured accounts is offered by Orchard bank. The bank requires a $200 deposit that can be refunded with a great payment history. The bank does charge a $59 annual fee which is higher than industry standards.
The Capital One Secured Mastercard offers the best maintenance fee in the industry, $29. This card is unique because it gives consumers a low deposit of $49 for a $200 limit. Because this is a partially unsecured card the APR is a huge 22.9%. This makes a great emergency card but not an every day use card.
The Citi Secured requires consumers to make a deposit just like other secured accounts, but instead of depositing the money into a no interest savings account Citi invests your money into CDs. Citi will also roll you over to an unsecured account in 18 months if you maintain a low balance and positive payment history. The only downside is the high interest rate of 18.24%. If you plan on keeping a balance you may want to look elsewhere.
Another secured account that offers a low APR (9.75%) is Open Sky Secured Visa Card. The bank does require the standard $200 security deposit but it allows consumers to deposit up to $3000. Maintenance fees are a little high though, $50, and there is a lot of hidden charges.
Mango prepaid mastercard is ideal for some one not interested in building their report. Unlike other prepaid accounts they do not have an activation fee. This card also gives consumers a $20 sign up bonus and does not charge to place more money on the card. Watch out for hidden fees with this company.
Scores do not improve overnight. Consumers have to earn them with on time payments, low balances and responsible use. By using these top credit cards for bad credit consumers can improve their score in a few years.
Top credit cards for bad credit can help you get back on track. You can get information about how to find and apply for top credit cards online, now.