What is the best low interest credit card for bad credit?

Question

One of the best credit cards for a 550 credit score is the OpenSky® Secured Visa® Credit Card. There’s no credit check when you apply, so approval is almost guaranteed. You just need $200 for a refundable security deposit and enough income to make monthly payments. This card also reports to all three … read full answer major credit bureaus (Equifax, Experian and TransUnion) every month, which is your ticket to a better credit score. And a $35 annual fee isn’t too much to pay for that.

Another good option is the U.S. Bank Cash+® Visa® Secured Card. This card offers 1 - 5% cash back, depending on the type of purchase and has a $0 annual fee.

However, those aren’t the only credit cards you can get with a 550 credit score. In fact, there are two kinds of credit cards for people at that credit level: secured credit cards and unsecured credit cards for bad credit. A 550 credit score is within the bad credit range, unfortunately. Bad credit goes from 300 to 639. But picking the right 550 credit score credit card and using it responsibly could help you improve your score to “fair” territory within 12-18 months.

The best credit cards for a 550 score:

No Credit Check: OpenSky® Secured Visa® Credit Card
Cash Back: U.S. Bank Cash+® Visa® Secured Card
No Deposit: Credit One Bank® Platinum Visa® for Rebuilding Credit
Flat Rewards Rate: Capital One Quicksilver Secured Cash Rewards Credit Card

You can also check our editors’ latest picks for the best credit cards for bad credit on the market to see which one better suits your needs.

Before applying for a card, though, make sure to check out its terms and conditions, or a FAQ page if there is one, just to make sure you fit the criteria for eligibility. You can also try getting pre-approved for a credit card. It won’t hurt your credit, and it will give you a good idea of your odds if you decide to apply.

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Answer 1 · 2020-11-03 18:41:56

Rodney Bennett, WalletHub Analyst

@rodneyben • 11/03/20 This answer was first published on 05/28/19 and it was last updated on 11/03/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The best low interest credit card for bad credit is the Credit One Bank® Platinum Visa® for Rebuilding Credit. The APR is 24.24% (V). While that’s still relatively high, it’s a lot cheaper than other unsecured credit cards for bad credit, which offer APRs of 24% - 36%.

The Credit One Bank Visa has no monthly or one-time fees. But the annual fee is $75 intro 1st yr, $99 after. New cardholders start out with a $300 credit limit, and can earn 1% cash back on purchases in specific categories. However, you won’t know which categories are eligible for rewards until your application is approved.

Unfortunately, unsecured credit cards for bad credit with low interest rates are hard to come by. Plus, unsecured cards for bad credit will often come with excessive fees and low starting credit limits, regardless of their APRs.

Answer 2 · 2020-08-21 03:18:38

Jamie Thompson, WalletHub Analyst

@ExTaxMan • 08/21/20 This answer was first published on 05/30/19 and it was last updated on 08/21/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You could also consider secured cards. They’re easy to get with bad credit because they require a refundable security deposit to open the account. The deposit serves as collateral for the lender and minimizes their risk, and your credit limit is equal to the deposit. But if you’re planning to carry a balance, secured cards aren’t ideal since you’re basically prepaying for your purchases with the deposit and then owing interest.

The best low interest secured credit card for bad credit is the Applied Bank Secured Gold Preferred Credit Card because it has one of the lowest APRs available, at 9.99%. It requires a minimum $200 security deposit to open the account, and you can deposit a maximum of $1,000. There’s also a $48 annual fee. First Progress Platinum Prestige Secured Card is another good option. Its APR is the same, at 10.24% (V), but there is a slightly higher annual fee: $49.

What is the best low interest credit card for bad credit?

Rodney Bennett, WalletHub Analyst

2022's Credit Cards for Bad Credit

Jamie Thompson, WalletHub Analyst

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