In most instances, this might include you choosing a secured credit card. How this works is you make a deposit to open the account that becomes your credit line. And through responsible use and timely repayments, you’ll improve your credit score, allowing you to secure better opportunities in the future. With these things in mind, here are some bankruptcy credit cards you should consider.
Moreover, the credit card comes with no annual fee. And best of all, after the first six months of on-time payments, Capital One might consider extending your credit line with no further deposit on your part. Therefore, if you’re searching for a card with the possibility of a higher purchasing power shortly, this could be it.
Pros
No annual feeLower deposit requirementsConsideration for higher credit line after six on-time paymentsNo foreign transaction feesWith CreditWise, you gain access to your credit scores for freeYou can also raise your credit limit with a higher initial deposit
Cons
You won’t receive cashback rewards on purchasesThe interest rate is 29.99% variable
Furthermore, you receive unlimited cashback incentives. It includes 1% on all purchases and 2% on the first $1,000 charged on gas stations and restaurants. After your first year, Discover offers an annual bonus, matching all the cashback you earned. It is a wise way to receive money back for everyday purchases. Also, Discover does not charge an annual fee for this credit card. And you can keep up to date with your FICO score, as it is on your monthly statements. Pros
Unlimited cashback incentives of 1% for all purchases and 2% back on the first $1,000 spent on gas and restaurant purchasesAfter the 1st year, Discover matches all cashback you earnedNo annual feeFree FICO score updates via your monthly statementAfter 7 months, Discover can refund your security depositOnly $200 to open the account (upon approval)With Freeze, you can turn off access to purchases if you lose your card, and you receive an overnight replacementU.S. based customer service
Cons
27.74% APR on all purchases, meaning if you carry a balance every month, the interest rate is high.
After earning approval, you’ll make a deposit between $200 and $3,000, which becomes your credit limit. Each month, OpenSky reports your payments to all three credit bureaus. Since your payment history is the most important factor in determining your credit score, responsible bill paying with the card is a wise way to see your scores increase. They also enable bill payment alerts each month, so you don’t have to worry about forgetting a payment. Pros
No credit checkYou can deposit as little as $200 or as much as $3,000 for your credit lineReports payments to all three credit bureausBill payment reminders are available A low-interest rate of 21.89% (variable) APR (compared to other options making this list)
Cons
There is an annual fee of $35You won’t earn cash bonus incentives
However, you must be a military member or family member to be eligible. If you are and earn approval, you’ll place the deposit into a savings account. The provider holds it as collateral while you use the card. After three months, they’ll review your account for a credit line increase. And after six months, you might receive a full refund of your security deposit. Essentially, the card becomes unsecured. Pros
No annual feesYou earn 1 point for every dollar spent (with no rewards cap)Could receive a credit line increase in 3 months of on-time paymentsThey might refund your deposit within the first six monthsThey don’t impose fees on cash advances or balance transfersYou can access your credit score
Cons
Not everyone qualifies as you need to be in the military or a qualified relativeIt comes with an 18.00% APR
Meanwhile, we also considered the long-term prospects of using these cards. After all, you want the card to evolve as you improve your credit score. With this in mind, we wanted to choose cards that gave you higher credit lines after making on-time payments. And cashback incentives also played a role in our decision-making process. If you could earn cashback on purchases while rebuilding your credit, that’s a win in our book. With this credit card, you earn an unlimited cashback bonus of 1% on all purchases and 2% on the first $1,000 charged for dining or gas. And after the first year, Discover matches all the bonuses you acquired. It is free money for making regular purchases. The best for flexible purchasing power: Capital One Platinum Secured credit card This secured card is one of the few that offers you flexible terms upon opening the account. Depending on your credit, you might only have to put down a deposit of $49 or $99 to open the card. And after six timely payments, they’ll review your account for a credit line increase. This card is perfect for those seeking simple terms and increased purchasing power. The best for military families: Navy Federal Credit Union Rewards Secured credit card You can rack up the rewards, as this card gives you one point for every dollar charged. You can also receive a credit line increase after three timely payments. And after six months, you could have your deposit refunded. You’ll also never pay an annual fee, foreign transaction charge, or an added cost for transferring a balance. Overall, it gives you many benefits you might not find with similar options. The best for no credit checks: OpenSky Secured Visa credit card The OpenSky Secured Visa credit card is a convenient option if you do not want to undergo a credit check. If you earn approval, your deposit becomes your credit line. The provider also reports your payments to all three credit bureaus, ensuring your responsible behaviors help you build your credit score. Credit One Bank Platinum Visa for Rebuilding Credit This card offers many of the same perks found in the other cards making our list. You earn 1% cashback on all purchases. And they’ll review your account regularly to determine if they can raise your credit line. The annual fees are expensive, though. For the first year, it is $75. After the first year, it rises to $99. You’ll also pay a variable interest rate of 28.49% APR on purchases. Due to the higher annual fees make it a less desirable option than other credit cards making our list.
