Having a couple of late payments under your belt can really put a damper on your credit score. It can be really hard to find a new line of credit.
With over 43 million Americans with poor credit scores, many people need to know how to start over to improve their scores.
Let’s talk about the best fresh start credit cards for people with poor credit.
What Is Considered Bad Credit?
Credit scores are a way for lenders and renters to gauge how responsible a customer or tenant for paying their debts. The scores are based on a range between 330 and 830.
A credit score below 600 is considered to be a poor score, whereas a score that is 750 and up is considered to be excellent.
Most Americans fall in the middle of those numbers with the average score in the U.S being 687.
These numbers are affected by a wide range of variables, including:
- Hard inquiries – When lenders check your credit score.
- Timely payments – Whether payments were made on time or not.
- Length of credit – A longer history of credit helps your score.
There are other factors involved, but those three affect it the most. Low scores can make it difficult to qualify for loans, especially for self-employed workers.
The 4 Best Fresh Start Credit Cards
Luckily, even if you have made mistakes or you were unable to make payments on time, there are still ways to open credit lines. Here are the 4 best fresh start credit cards available today.
1. Total Visa
The Total Visa is an unsecured credit card, and yes, it offers no perks. Instead, it is a card that offers very low hassle and is specifically designed to help you build back your creditworthiness over time. Check out some more details.
2. Discover it
Discover offers credit cards to people with poor credit and offers 1-2% cash back with no annual fee. However, it does require a deposit.
Placing the $200 deposit that is required to get Discover it Secured and paying your bill on time every month can be a great way to rebuild your credit.
3. Capital One Mastercard
This is a very popular choice for people looking to rebuild their credit. It does not require any annual fees, but it does have a higher annual rate averaging 26.99%.
Depending on your creditworthiness, you can get it secured, but you will have to make a deposit of $49, $99 or $200 for a $200 spending limit.
4. Credit One Bank Platinum Visa
Another card designed specifically for rebuilding credit. It is great for emergency loans and offers a 1% cash back rate on eligible purchases.
It also offers no over-limit fee, and only requires one first-year deposit of $75.
Don’t give up because of a low credit score. Rebuilding it is absolutely worth it in the long run, as past mishaps subside over time.
As you see, there are plenty of fresh start credit cards to get you started, so don’t wait. You don’t want to be turned down for a loan you need in the future.
If you are a small business owner or freelancer and you are having trouble getting a loan for your business, check out some helpful tips on invoicing.