What are the best catalog credit cards for bad credit?

The best catalog credit card for bad credit is the Montgomery Ward Credit Account. This card has a $0 annual fee, reports your information monthly to the major credit bureaus, and allows you to pay off purchases over time. 

Things to Know about Catalog Credit Cards

Catalog cards, also known as merchandise cards, usually have minimal requirements in order to qualify. Applicants generally need to have an active checking or savings account and proof of income, as well. In most cases, they don’t require credit checks for approval.

You should also note that these cards are not affiliated with a card network such as Visa or Mastercard. They’re store cards that you can only use for purchases within their affiliated catalog. Some catalog cards come with numerous fees that will eat up a huge chunk of your credit limit.

Best Catalog Credit Cards for Bad Credit

The Montgomery Ward Credit Card can be used for purchases at Montgomery Ward. Your credit limit varies, depending on your creditworthiness and account activity. The card has a $0 annual fee. It doesn’t charge monthly or one-time fees, either. The card also reports your credit information to the 3 major credit bureaus.

The Fingerhut Credit Card purchases are limited to Fingerhut. Credit limit varies based on creditworthiness and monthly account activity (purchases and bill payments). 

The card’s annual fee is $0. Plus, it doesn’t charge monthly and one-time fees, either. It is also worth noting that this card reports to all 3 major credit bureaus. The card’s regular APR is 35.99%.

The Group One Platinum Card can only be used for purchases at Horizon Outlet. You are guaranteed a $750 merchandise credit limit upon approval. The card also comes with a $0 annual fee. However, the card charges a monthly fee of $0. There is no employment and credit check required for approval. Just note that this card does not report your information to the credit bureaus.

You can also check out the Net First Platinum, which has similar terms.

Ultimately, catalog cards for bad credit are good only if you’re frequently shopping at the store the card is affiliated with. If you’re serious about building credit, you’re better off with a secured credit card such as the Bank of America® Customized Cash Rewards Secured Credit Card or the Capital One Platinum Secured Credit Card. You’ll have to pay a refundable security deposit upfront, but you can use the card practically anywhere. Plus, you won’t be saddled with excessive monthly fees.

I hate to say it, but I think Fingerhut and Montgomery Ward really are the best options. I’d pass and just get a secured card with good rewards on everything.

Fingerhut, I guess. But a catalog card is not the best option overall. Just get a secured card from Cap 1/Discover.