The Best Cards To Repair Bad Credit
How do I open a credit card to help repair my credit? What features do credit repairing and building credit cards have? Are there extra fees when opening a credit card to help build my credit? The best credit cards for building and repairing credit all have distinct fees and features while still working in similar ways. Read ahead for important information on the top credit cards used to build credit in 2021.
Best Ways to Repair Your Bad Credit
Repairing your bad credit is essential if you also plan to improve your financial standing and quality of life overall. Credit repair is a process and not a magic pill, but can be accomplished with discipline when using valid methods. Erroneous charges on your credit report are capable of being disputed and removed. Changing your credit utilization processes, making bi-monthly payments and reducing higher revolving debt first are all valid methods for repairing bad credit. It is also advisable to take advantage of your free annual credit report through AnnualCreditReport.com online. Knowing what is on your credit report helps stay ahead of false charges, identity theft and more.
It is also possible to open credit repairing and secured credit cards. These cards are not like typical credit cards for consumers with positive credit. These types of cards are designed to help people with bad credit repair FICO scores using proven effective credit building methods.
How Certain Credit Cards Can Help Repair Your Credit
In many cases, repairing and building credit is essentially the same thing. In other cases younger consumers have no established credit and need effective ways to build up credit history/scores. Some times even established consumers experience bankruptcies or, after certain lengths of time, have most of their previous credit activity fall off their reports. Differences building and repairing credit frequently have to do with the interest rates charged and if credit limits require secured deposits for approval and activation.
Top 5 Credit Cards to Repair Credit in 2021
Credit repair and credit building credit cards all help improve your credit when used properly with financial discipline. While these types of accounts all effectively do the same things, each card has its own set of features and requirements for approval and activation. The top 5 credit cards to repair credit in 2021 and the ways they help repair your credit are:
- Discover It.
- OpenSky Secured Visa.
- Petal 2 No-Deposit.
- Capital One MasterCard.
- Bank of America Cash Rewards for Students.
1. Discover It
The Discover It Secured Credit Card is designed for people with limited history and bad credit. This card has several beneficial features, which make it one of the best credit repair and credit building cards on the market in 2021. The $200 secured deposit is due immediately when applying but is refundable if your application is denied. The Discover It card also requires no processing, monthly or yearly fees. This is a strong perk to owning this card. Cardholders receive one to two percent cash back on all purchases, and for the first year Discover doubles all reward amounts as a promotional bonus. The variable APR is 22.99 percent after six months. The variable APR during the first six months is only 10.99 percent, however. Approval requirements include holding a valid checking account in good standing, no declared/pending bankruptcies and a verifiable income-to-debt ratio meeting Discover’s required terms.
2. OpenSky Visa
The OpenSky Secured Visa Credit Card requires no credit checks for approval when applying as a new applicant. Applicants are required to be at least eighteen years old, however. A minimum $200 secured deposit is also required to open this account. There is an annual fee of $35 on this card as well as a variable 17.39% APR. The OpenSky Visa is an excellent card for both building and repairing credit due to it not requiring a hard credit check for approval. The annual fee and APR are also both average amounts compared to other secured cards on the market. The card is also accepted worldwide.
3. Petal 2 No-Deposit
The Petal 2 No-Deposit Credit Card is another excellent choice for people with limited or no credit. Pre-approval happens without a hard credit check. Cash back ranges from an immediate one percent on certain purchases all the way up to ten percent when using additional select merchants. There are no fees on this card whatsoever, which is its best feature. The variable APR ranges from 12.99%- 26.99%. Applicants with prior/pending bankruptcies and a history of late payments are generally not approved for this card. A convenient mobile app is available and the cash back amount increases to 1.5 percent after a full year of on-time payments.
4. Capital One MasterCard
The Capital One Platinum Secured MasterCard is different from many other secured credit cards because it adds $200 to your credit line once you make the required minimum secured deposit. The amount of deposit required ranges from $49 to $200 and is dependent upon your credit score and other qualifying factors. The variable APR is high at 26.99 percent but there is no annual fee. This card is straightforward and has no cash back or other rewards perks. One primary benefit is every cardholder is automatically considered for a higher credit limit every six months.