I Need Unsecured Credit Cards for Really Bad Credit
Warren is a 22-year-old who is in full-time employment. He emailed me with the following question...
I need unsecured credit cards for really bad credit. I recently checked my credit report and my Fico score is below 600 which is poor credit.
I want to borrow money in the future and I'm fed up with resorting to payday loans which charge high interest. I also desperately wanted to rebuild my credit for the future because I plan on settling down soon and hopefully one day owning my own home.
I need to know the following...
Q1: Can I apply for a bad credit credit card with a Fico score less than 600?
Q2: What are the best credit cards for people with really bad credit?
Q3: How many bad credit credit cards should I apply for at any one time?
Q4: What can I do to quickly improve my Fico credit score from Poort to Good?
Q5: Which bad credit credit card should I apply for given my poor credit status?
Look forward to hearing from you...
My Response
Hello, Warren and thanks for emailing The Millionaires Giving Money Blog.
As a 22-year-old guy, you are asking all the right questions to get the right credit card and to improve your credit.
In this post, I will answer your five questions and make recommendations for the best credit cards for people with really bad credit.
I will also offer 10 tips to improve your credit score as well as 10 tips to improve your personal finances.
I really hope you put all these tips into action. I was in a very similar situation and I was able to go from poor credit to excellent credit!
Your Questions Answered...
Q1: Can I apply for a bad credit credit card with a Fico score less than 600?
You can apply for bad credit credit cards with a Fico Score less than 600. There are credit cards for people with Fico scores less than 550 and for people without any credit history.
Unfortunately, you will get a relatively high-interest rate and a low credit limit. You will not get the best deals like zero percent credit cards as these are reserved for people with excellent credit, something you should aspire to.
Q2: What are the best credit cards for people with really bad credit?
The best credit cards for people with really bad credits are offered by Credit One Bank, Surge, Fingerhut, USAA, and Discover. I will be providing a full list of credit cards for people with really bad credit under 600.
Q3: How many bad credit credit cards should I apply for at any one time?
You should do your research and find credit cards you are most likely to be accepted for. One you find these credit cards you should only apply for one every 6 months.
The reason for this is you do not want to come off as desperate for credit as every time you apply a hard check is added to your credit file and this reduces your Fico Credit Score.
Q4: What can I do to quickly improve my Fico credit score from Poort to Good?
You are asking the right question here. Below I will be offering 10 tips to quickly improve your credit score. I used these tips to take my credit score from poor to excellent in 9 months.
Q5: Which bad credit credit card should I apply for given my poor credit status?
Given your circumstances, I would recommend the USAA Classic Platinum. This card is unsecured so you don't have to put up a deposit. There is a $35 annual fee and APR of 18.40% to 24.40%.
This card is great for rebuilding credit and there is no foreign transaction fee when you travel overseas.
Unsecured Credit Cards for Really Bad Credit
Here is a list of 10 unsecured credit cards for people with really bad credit.
You should apply for one every 6 months. The USAA Classic Platinum Visa has a $35 annual charge and is targeted towards people with really bad credit. This is the credit card you should apply for now.
If you're approved that's great.
If you are declined wait another 6 months before you apply again and consider applying for a secured credit card which is easier to be approved for and will help you build your credit.
You will need a $200 dollar deposit but this will be a great way to improve your credit.
Card 1: USAA Classic Platinum Visa with $35 annual charge
Card 2: Fingerhut Credit Account with no annual charge
Card 3: Surge Mastercard Credit Card
Card 4: Credit One Bank Unsecured Visa Credit Card with annual charge 0 to $99
Card 5: Credit One Bank Visa Credit Card with 1% Cash Back
Card 6: Credit One Bank Unsecured Visa - No deposit required
Card 7: Total Visa Unsecured Credit Card
Card 8: First Access Visa Credit Card Unsecured
Card 9: The Luxe Signature Mastercard Unsecured Credit Card
Card 10: Horizon Gold Card Excellent for rebuilding credit
Tips to Improve Your Credit Score
Here are 10 quick tips you should use to improve your Fico Credit Score from Poor to Good. I used these tips to improve my credit score from poor to excellent.
These tips work so take action now.
Tip 1: If you have existing credit cards set up an automatic payment so you pay on time
Tip 2: Never spend more than 30% of your available credit limit
Tip 3: Have one registered address for all bank accounts and credit cards
Tip 4: Call up existing credit card companies and ask them for a limit increase
Tip 5: Do not apply for more than 1 credit card every 6 months
Tip 6: Pay more than 10% of minimum payment every month
Tip 7: Pay 1 week in advance every month, this will improve credit score
Tip 8: Become an authorized signatory with a person with really good credit
Tip 9: Remove financial association with people with bad credit
Tip 10: Dispute all defaults on your credit account if older than 6 years and remove them
10 Tips to Improve Your Personal Finance
To improve your personal finances I would advise you to put into action the following tips. I've read more personal finance books than I care to remember and these are the 10 tips that keep repeating themselves.
These tips will pave the way for a better future. These are the tips I used to improve my personal finance.
Tip 1: As soon as you're paid, automatically save 10% in an Emergency Fund account
Tip 2: Make a list of all your expenses and try to reduce it by 30%
Tip 3: Progress your career and ask for a pay rise, or find a better-paid job
Tip 4: If you can, get a 2nd job and save all the money you make in a savings account
Tip 5: Repair and improve your credit so you can borrow money cheaply
Tip 6: If you can, you should downsize to pay less in rent
Tip 7: Look for ways to supplement your income online e.g. blogging
Tip 8: See if you can get a scholarship or grant to study or learn a skill to get a better job
Tip 9: Cook your food from scratch and embrace batch cooking
Tip 10: Don't take out more debt until you have a beefy emergency fund
I Need Unsecured Credit Cards for Really Bad Credit
Firstly, I would advise you to apply for the first credit card on the list.
If you are approved then it's job done.
If you are declined consider applying for a secured credit card. Do not make more than one credit application every 6 months.
You should also put the 10 tips to repair credit into action. Within 12 months your Fico credit score will be much higher.
Also, take action and implement the tips for improving personal finance. In 12 months you will be in a much better position and you may have an option to apply for a mortgage.
I wish you all the best. Below are some more frequently asked questions that I get with regards to unsecured credit cards for really bad credit...
Frequently Asked Questions on Bad Credit
FAQ 1: What is the best-unsecured credit cards for bad credit with no deposit?
In my opinion, the best-unsecured credit cards for people with really bad credit which does not require a deposit is the USAA Classic Platinum Visa with $35 annual charge.
A lot of people have been approved for this credit card with poor credit.
FAQ 2: Are there any instant approval credit cards for bad credit?
Thre may be instant decision credit cards but this is very rare for people with really bad credit. If you are given an instant decision then you could be approved.
Thre is no guarantee that you'll be approved.
FAQ 3: Are there any bad credit credit cards guaranteed approval?
There are no guaranteed approval credit cards. The credit card company will take into account your credit score and status.
FAQ 4: Can I apply for the Total Visa unsecured credit card with bad credit?
Yes, you can. Total Visa offers unsecured credit cards for people with really bad credit.
FAQ 5: What are a second chance credit card with no security deposit?
This is when a credit card company considers taking you on as a customer despite having poor credit, they are giving you a second chance without the need to secure your card with a deposit.
FAQ 6: Are there any guaranteed approval unsecured credit cards for bad credit?
There is no guaranteed approval unless it's a secured credit card.
FAQ 7: What are best credit cards for rebuilding credit?
Secured credit cards are the best to rebuild credit.
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