Whether you have credit card for low credit, or you are a first-time borrower, you should look for a card that helps build your score. A low credit score can make it difficult to rent an apartment, get a car loan, or get hired by employers who check your credit report.
The best credit cards for people with low credit scores offer straightforward approval processes and a clear focus on building your credit. They also provide tools to help you monitor your credit, access credit-building resources, and be automatically considered for a higher credit limit once you establish good card habits.
Why a Credit Card Could Be the Key to Improving Your Credit Score
If you have poor credit, secured cards are a great option because you can get approved with little to no money down. The deposit is your risk, but you can usually get it back after a year of responsible use.
Transferring a high balance from one card to another can be an effective way to pay down debt, reduce interest and improve your score. It can be especially useful if you are trying to avoid late fees and penalty APRs.
The most important factor in your credit score is your payment history. If you miss a payment on your credit card, mortgage or student loan, that will show up on your report and can have a significant impact on your score.
A high balance on a credit card is viewed more negatively than a small balance. Your scoring system also considers how much of your credit line you’re using, which is called your credit utilization ratio.