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We wrote about credit cards for people with bad credit in September, where we talked about secured and unsecured credit cards. One of the best ways to improve bad credit is through responsibly using a credit card. Many people start by applying for a secured card, where they use their own cash deposit as a line of credit. By building credit and showing responsible spending, you can soon graduate to an unsecured credit card that has a lower APR and better benefits.
What are the best secured credit cards for people with bad credit?
One of the best cards out there is one that we already championed in September – the DCU Visa Platinum Secured card. The DCU (Digital Federal Credit Union) is a not-for-profit financial cooperative, meaning consumers benefit from lower interest rates and low or no fees.
The DCU Visa Platinum Secured has an average APR of 11.5% – much lower than most secured cards – and has no annual fee.
Plus right now, the DCU Visa Platinum Secured card has a limited time offer where you automatically get 1% cashback on every purchase made between Thanksgiving and New Year's Eve. Most secured credit cards don't tend to offer rewards to customers, so this card is one of the better choices if your credit is rated as poor or bad.
Credit cards for people with bad credit aren't always bad deals as you may assume. If you find a credit union card deal like this and you need to rebuild your credit, then this is the way to go, especially if you find one with rewards.