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Having a low credit score makes it harder to get approved for a new credit card and other types of loans, and it means that when you do get approved for, say, a mortgage, you’ll generally get less-favorable terms like the highest variable interest rates.

A bad credit score is defined as anything below 580, according to the FICO scoring model, and anything below 601 according to VantageScore. If you currently find yourself in this credit score range, you probably won’t get approved for popular credit cards like the Chase Sapphire Preferred® Card, but you do have some credit card options.

Here are some of the best credit cards to consider if you have a lower credit score or are still working on building your credit history.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Best secured card for overall rewards: Discover it Secured Card

The Discover it® Secured is easily the top secured credit card on the market today, because not only is there no annual fee, but you also get the opportunity to earn rewards. You’ll need to put down a cash deposit to get started, and you’ll secure a line of credit equal to that amount that you can use to begin building a responsible credit history.

If you use your card responsibly, you can also get your deposit back when you close or upgrade your account in good standing. Automatic reviews start at seven months to see if Discover can transition you to an unsecured line of credit and return your deposit.

In terms of rewards, the Discover it® Secured lets you earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%), plus 1% back on all other purchases. …read more

Source:: Business Insider


10 best credit cards for bad credit of June 2022: Secured and unsecured cards, including some that earn cash back or flexible points

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