What are the easiest credit cards to be approved for to re-establish or establish credit? In many parts of America, people are still recovering from a difficult financial situation because of the bad economic conditions over the last decade.
Because of this, there has been an increased need for people to find good alternative ways to repair their credit. One of the fastest ways to begin to rebuild credit is through obtaining a new credit card. Because they report payment history regularly to the credit bureaus it is easy to see how scores can increase readily.
Credit Cards for People Who Have Bad Credit Or No Credit
For people who have bad credit or very little credit, getting a credit card may be difficult with traditional credit card companies. However, there are credit card companies that specifically cater to people with poor credit and no credit. In many of these cases, the interest rates are higher.This is a list of the main companies that cater to people who are trying to establish credit or re-establish credit:
- First Progress Platinum Elite Mastercard
- Credit One Bank Platinum Visa
- Chase Slate
- Indigo Mastercard
- Milestone Gold Mastercard
- Capital One Platinum Mastercard
The first level of credit cards available for people with poor credit or no credit is secured credit cards. The companies that offer secured Visa, and secured MasterCard credit cards all have easy approval odds. In fact, in most cases, these are considered guaranteed approval because they are secured credit cards. The reason that most of the secured Visa and secured MasterCard’s have quick approval with bad credit because the company creates a secured position which has little to no risk to them. These types of credit cards ask credit card owners for a security deposit equal to the amount of the credit line. This money is held by the credit card company to secure the card’s credit limit will be paid even in the event of the borrowed amount going into default on their monthly payments. Many people with bad credit or no credit use these types of cards.
Credit Cards for People with Fair Credit
In addition to the credit cards that are considered guaranteed for approval, there are credit cards that are designed for people with fair credit. These credit cards may have easy approval odds for people whose credit number is over 560. Like the cards that offer quick approval with bad credit, many of these credit card companies offer quick approvals within minutes for online applications.Two of the more popular credit cards for people with poor credit or no credit as well as fair credit are, First Progress Platinum Elite Mastercard and the Credit One Bank Platinum Visa. These two credit cards are not usually based on a needing a security deposit and therefore is a good place for people to establish credit or re-establish credit without having their money held up in a security deposit. This is an important advantage for people who are just beginning to gain their credit power back and don’t want their money to be held up.
Typical Costs Involved for Building and Rebuilding Credit
The good news with any credit card approval, customer payment history reporting helps people to rebuild credit. In fact, with all three credit reporting agencies, each positive payment history recorded by a credit card company a person’s credit score can inch up a few points per month. Over time this can add to substantially raising a person’s credit score.It should be noted that the annual interest rates are generally higher with these credit cards. And average over 24% annually. In addition, consumers should note that many of these credit cards also have monthly fees and an annual credit card fee associated with these types of credit cards. These costs can help a company offset their risks on people who have poor credit or no credit. However, these credit cards are a great way to begin to re-establish credit or to start to establish credit fairly quickly.