Austin Meadows, Author at Credit Liftoff

Best Credit Cards for Families (3 Great Cards for Parents)

August 18, 2019 by Austin Meadows Leave a Comment

If you’re a parent, you probably know by now that you’ll be spending money on all sorts of things that you never did before having children. From diapers to formula to school supplies to soccer camps, kids can be expensive – so you might as well be rewarded for those purchases! In this guide, we will go over some of the best credit cards for families to help parents earn the most rewards and perks for their family-related spending.

To help all the busy parents get the information they need quickly, we have come up with the best credit cards for parents broken down into various categories. See below for details.

Best Credit Card for New Parents: Citi DoubleCash

If you’re a new parent, chances are you want to keep things as simple as possible: and the Citi DoubleCash is just that! This card has no annual fee, and earns a flat 2% back on all purchases – whether you’re buying diapers, groceries, gas or a date night dinner, you’ll earn 2% on every purchase.

2% on every purchase is an excellent rate, especially considering that there is no annual fee to worry about. You certainly could earn more cashback on certain categories with specific cards, but you’d have to put in more effort. For simplicity’s sake, go with the DoubleCash – it’s a great all-around option!

For Large Families: Blue Cash Preferred from American Express

If you have a large family, you will probably be better off with the Blue Cash Preferred from American Express. This is one of the best credit cards for families with large grocery bills, as it offers an impressive 6% cashback on grocery store purchases in the US. For big families, that can really add up to a LOT of cashback. It also offers 6% back on select streaming services (like Netflix, etc.), 3% cashback on transit, and 1% back on everything else.

The downside is that this card has a $95 annual fee. For families that spend a lot on groceries, the fee is well worth it – but it’s still something to pay attention to and do the math on. If you don’t want to pay the fee, there is a lower-tier version of this card that offers 3% cashback on groceries, and does not have an annual fee. You can do some math based on your spending habits to see which card makes the most sense.

For Online Shopping: Amazon Prime Rewards Card

If you and your family do a lot of online shopping, it’s worth picking up the Amazon Prime Rewards Visa Signature card. The card is excellent for Amazon shoppers, as it earns 5% cashback on qualifying Amazon.com purchases. The cashback comes in the form of credit that you can spend right at Amazon!

There is no annual fee on this card, which is another big perk. You can also use it abroad without a foreign transaction fee. It even comes with a signup bonus sometimes, usually of a $40-$70 Amazon.com gift card!

For Family Travel: Chase Sapphire Reserve

If you’re family likes to travel, the Chase Sapphire Reserve is an excellent option. This card offers a huge array of travel perks that make life on the go so much more pleasant, particularly for families. Here’s just a sampling of the perks of this card:

$300 per year in travel credits to use on just about any travel purchase
Free access to airport lounges at most major airports
Rental car damage waivers to save you money on rentals
Free roadside assistance/towing
No foreign transaction fee
Huge 50,000 point signup bonus
Ability to redeem points for free flights, hotels, activities, cash, gift cards and more

The Chase Sapphire Reserve is one of the best travel credit cards overall, and one of the best credit cards for families who like to travel. The downside is that it has a $450 annual fee, which is mostly offset by the $300 annual travel credit. Even so, you’ll pay at least $150 out-of-pocket. Thus, we only really recommend this card for frequent travelers.

So there you have it – our list of the best credit cards for parents and families! Keep in mind that the best card for you will depend on a variety of factors. We recommend thinking about:

Where you spend the most money (what type of store/merchant)
How your spending patterns will change as your children grow
Whether or not you’re willing to pay an annual fee
How your credit rating is (this will affect the type of cards you’ll be able to get approved for)
What specific perks you are looking for in a credit card

Consider these factors first before making your decision. And when you’re ready, apply and enjoy your new rewards credit card! For some other options, check out our mega-guide to the best credit cards overall.

For some further reading, check out this excellent round-up of financial tips for parents!

GetFinancing Review – Online Purchase Financing Provider Reviewed

August 17, 2019 by Austin Meadows Leave a Comment

Have you ever wanted to make an online purchase, but aren’t sure how to finance it? GetFinancing.com may be able to help, as the service matches consumers to lending options in order to finance online purchases. Find out more in our GetFinancing.com review!

What is GetFinancing.com?

GetFinancing.com is a free service that helps match consumers with attractive financing options. Specifically, the service focuses on online purchases.

GetFinancing has deals with many third party ecommerce websites to provide financing options directly in the checkout process. If you make a purchase at a participating site, you will see GetFinancing as an option during checkout. The service then matches you to the best financing options based on your credit profile.

GetFinancing.com Review

So, how does GetFinancing stack up? Is it worth using?

For online purchases, it’s quite simple to use.

We like that GetFinancing provides multiple financing options, helping you shop around for the best option. Most competing services just offer a single option, so this feature could potentially help you save some money on interest.

In terms of the interest rates and other specifics, GetFinancing’s offerings really vary depending on your credit score. The service uses your credit profile info to match you to qualified lending providers, and you can check the terms that each provider is offering.

GetFinancing also provides instant approval in many cases, allowing you to continue with your purchase without waiting for a lengthy application process.

Overall, GetFinancing provides a very useful service for people looking to make online purchases on credit. It’s not available at all vendors, but for those that it is available at, it’s a good option.

To get the best deal, make sure you look closely at the offer terms and conditions, as well as the APR and other financing details, before choosing a specific lender. Thanks for reading our GetFinancing review, and let us know in the comments if you have any questions!

Reddit Gift Card Exchange Review (Is GCX a Good Place to Trade Gift Cards?

August 15, 2019 by Austin Meadows Leave a Comment

Sometimes you wind up with a gift card that is not quite what you actually wanted. Maybe you got Bed, Bath and Beyond when you would have preferred Amazon. Or, maybe you just want some cash instead of a gift card to a specific retailer. But what can you do?

Head to Reddit, of course! The Front Page of the Internet has micro-communities for just about everything you could possibly think of, and people coming together to exchange gift cards is one of them! The subreddit is called /r/giftcardexchange, also known as GCX. Find out more about this useful corner of the internet in our full Reddit Gift Card Exchange review!

What is the Reddit Gift Card Exchange (GCX)?

Reddit’s Gift Card Exchange, or GCX, is a subreddit on the popular website Reddit. It functions as a forum or messageboard where people can come together to work on deals to trade gift cards for other gift cards, or for cash.

Users can make posts explaining what gift cards they have, and what they would like to trade for. The most commonly traded cards are Amazon, Best Buy, iTunes, and cash (PayPal, cryptocurrencies, etc.), but you can find just about anything if you’re patient.

It’s important to note that this is NOT a business or any sort of formal organization. It’s simply a user-run, user-moderated community where you can go to work out individual deals. Because of the potential for scams, there is some risk in trading on the GCX – and perhaps moreso than selling your gift cards to an actual business such as CardCash.

How Does GCX Work?

Reddit GCX works like this:

Users can post a thread to GCX stating that they have X gift card, and want to trade for X
Other users who are interested in the trade must comment on the post and then PM the poster
If both parties agree to the deal, they send each other the gift card codes (most cards are traded digitally, rather than physically mailing plastic gift cards).
One person will have to send the code first, which is where the trust comes in. Generally users with the most feedback on GCXRep will send last, requiring newer users to send their gift card codes first
Once both parties have received their codes, feedback should be left on GCXRep, and the original post on GCX should be marked as sold/closed.

All posts to GCX must follow a very specific format. Here’s an example:

In this example, the user has [H] a $50 Walmart gift card, and wants [W] $40 cash via PayPal. If you were interested in this deal, you would just need to comment on the post, and then send the user a private message.

Reddit GCX Rules & Trading Safety

Gift Card Exchange is a subreddit with very specific rules, which help to keep the community safe from scammers. The rules list is extensive and too much to list in this Reddit GCX review, so the full rules can be found here.

The rules that are most relevant to new users of GCX are:

You must be an active Redditor with an account that’s at least 28 days old (so you can’t sign up for Reddit today and begin trading immediately)
Users MUST comment on posts before sending PMs. This is a primary way that the moderators filter out scammers. If you get a PM, make sure to check if the same user has commented on your post
Trades over $99 are subject to restrictions, and usually require moderator approval.

You should fully read and understand the rules of the Subreddit before taking part. Otherwise, you may be scammed!

You should also read through the GCX Safe Trading Guide before browsing the Subreddit, so you can understand what goes into trading safely.

Reddit Gift Card Exchange Review

Now that you know a bit more about how GCX works, let’s talk about whether or not it’s worth actually using!

The Reddit Gift Card Exchange is a great place to trade gift cards frequently, but it’s a bit of a headache for new users. If you are someone who actively trades gift cards (whether you’re flipping or just tend to get a lot of gift cards), it’s absolutely worth learning the system and trading on GCX. But if you’re just looking for a place to sell or trade a single gift card, it may be too much of a hassle to learn the GCX system.

Because it’s a user-run system and not a business, there are unfortunately a fair amount of scams. If you pay close attention, and follow the rules and the safe trading guide, you should be fine – but be careful!

My Experience with the Reddit GCX

It wouldn’t be a very good review of Reddit Gift Card Exchange without a personal report!

I myself have used the Reddit GCX quite a bit in the past. Overall, I found it to be useful. I scored some great deals, like a $75 Netflix gift card for $50 PayPal. I also sold some cards that I wasn’t going to use, getting $70 PayPal for a $100 American Airlines gift card.

My overall experience was good. I did not get scammed, although I saw someone attempting to scam me. They commented on my post, and then PMed me from a different account with a very similar name. This is a common scamming method, so be on the lookout!

I did spend a fair amount of time reading the rules, setting up my reputation profile, and preparing to trade. It’s not a one-click-and-you’re-done kind of place, unfortunately. In the end it was worth it for me, as I traded quite a few cards and got some great deals. But if I were just looking to sell or trade a single gift card, I would probably go elsewhere.

Final Thoughts

To wrap up this Reddit GCX review, I’ll say this:

If you want to actively trade gift cards, keep an eye out for good deals, and/or flip cards, Reddit GCX is absolutely worthwhile. It’s an active community with tons of trusted traders, and lots of good deals that you can jump on whether you’re selling or buying.

If you have a single card to sell/trade, it’s going to be easier to just use a company. I recommend checking out GiftCardGranny, which lets you type in the gift card you have and compare offers from a variety of gift card merchants.

You’ll probably get a better deal on Reddit GCX, but whether or not the extra effort is worth it is up to you.

Have you used Reddit GCX? Let us know about your experience in the comments!

How to Help Someone Build Credit as an Authorized User

August 14, 2019 by Austin Meadows Leave a Comment

Having good credit is a vital part of our financial health and our overall success in life. This one number has a huge impact on our ability to obtain a line of credit, get a mortgage, and even get a job or apartment lease. Not only that, but having a great credit score can save you tens of thousands of dollars of interest over the years. But how do you help your loved ones build credit, without hurting your own score? The answer could be adding them as an authorized user. Keep reading for info on how to help someone build credit as an authorized user.

What is an Authorized User?

An authorized user is a third party that you can add to your existing credit card account. It could be a spouse, a child, a relative, or even a close friend. There is no real requirement on the credit card provider’s end – but ultimately, the authorized user has access to your account and can spend money that will end up on YOUR credit card bill, so it’s absolutely vital that you only add authorized users that you trust 100%.

Once added as an authorized user, the individual will get their own credit card with a unique number, but it will be tied to your own account. Any purchases they make will be added to your credit card bill. Ultimately, the account holder is liable for any purchases made by authorized users, so again, it’s extremely important to only add very trusted individuals to your account.

You may wish to add someone as an authorized user on your credit card in order to help them build credit. This is a viable option, and can definitely help boost their score (particularly if they have no credit history or a very limited one).

Parents adding children as authorized users is the most common use for this credit card feature. This can be a good strategy to help your child build credit from a young age – and in fact, the child doesn’t actually need to use the credit card in order to benefit. As a parent, you could potentially hold on to the card yourself for safekeeping, and your child would still get the benefit of sharing the positive effects of your credit history.

How to Help Someone Build Credit as an Authorized User

The process of adding someone as an authorized user is quite simple, and it can potentially help them build good credit. Here’s how to help a relative build credit as an authorized user:

Establish Trust – you will be giving this person access to your financial account, with the ability to wrack up debt that YOU are ultimately responsible for. Think long and hard before you decide if you can truly trust this person.
Contact Your Bank – you can call in to add an authorized user to your account. You may also be able to do it online, but we recommend calling in so you can ask any questions you might have.
Provide the Authorized User’s Information – your bank will ask for the individual’s full name and social security number, and potentially other details like address and date of birth. Have this information handy before calling in.
Continue Using Credit Responsibly – in order to help someone build credit as an authorized user, you must use credit responsibly yourself. This means paying your bill on time, keeping a reasonable credit utilization, etc. If you yourself have poor credit habits, adding someone as an authorized user will not improve their score – and it could even damage it, in some cases!

That’s all you need to know about helping children build credit as authorized users! Leave a comment below if you have any questions.

How to Improve Your Approval Odds when Applying for a Credit Card (6 Actionable Tips to Get Approved!)

August 13, 2019 by Austin Meadows Leave a Comment

If you’re thinking about applying for a new credit card, you may be wondering how to improve your approval odds. When applying for any new line of credit, it’s important to consider the likelihood of getting approved – and it’s also a good idea to take a few quick actions that can help you improve your odds.

This guide will go over several actionable steps you can take to easily improve your odds of approval for that new credit card you’re after.

How to Improve Credit Card Approval Odds

There are many factors that go into a bank’s decision to approve a credit card or not. Not all factors are within your control, but there are definitely some steps you can take to increase your odds of being approved for credit. Check out our 6 actionable tips below!

1. Know Your Credit Score & Creditworthiness

First and foremost, you should absolutely be familiar with your estimated credit score and the credit factors that contribute to it. If your score is not quite where you want it to be, you can read about how to improve your credit score in our guide.

Knowing your score before applying helps you select the right type of credit card for you, which in turn improves your approval odds. For instance, if you have a FICO score in the low 600s, you should not be applying for any premium credit cards, as you are very unlikely to be approved. And since a credit inquiry can ding your score whether you are approved or not, you want to target cards that you are more likely to get approved for.

2. Apply for the Right Type of Credit Card

Once you know your score, you can better understand the types of cards you are likely to be approved for. And you’ll know which cards to avoid because approval odds are low. Choosing the right card is perhaps the biggest factor that can improve your approval odds when applying for credit.

For help choosing the right credit card, check out our guide to the best credit cards overall, the best credit cards for fair credit, and the best credit cards for poor credit.

3. Minimize Debt Before Applying

Whenever possible, it’s helpful to pay off as much debt as possible before applying for credit. This helps show banks that you are a reliable person to lend to. It also helps reduce your credit utilization, an important factor in the credit analysis banks perform when deciding whether or not to extend you credit.

For more information, check out this helpful guide on how to pay off debt.

4. Report Your Full Income

When you apply for a credit card, there are two main factors that the bank will look at: your credit, and your income. You will be asked to report your income on the credit card application.

To improve your odds of approval, make sure you state your full income, including income from all sources. Consider income from:

Wages and salaries
Contract work
Investment income (dividends, etc.)
Rental income
Pension/social security income
Child support/alimony
etc.

Basically, any money that you receive during the year that can be considered income can be used on your credit card application. By including all available income, you can help improve credit card approval odds, while also potentially getting a higher credit limit.

5. Report Household Income (if Applicable)

This point ties in with the previous strategy, but it’s worth talking about in greater detail. Credit card applications consider household income, not individual income. This means that if you are married or in a long-term committed relationship, you can report the combined income of both you and your spouse/partner.

It’s easy to see how this could potentially greatly impact your credit card approval odds. If you and your spouse each draw in a similar salary, reporting household income instead of individual means that your reported income essentially doubles.

This is 100% allowed by credit card companies. They ask you to report any income that can be used to repay debts associated with the credit card. So, if you and your partner split expenses, it’s completely reasonable to use combined income on your credit card application.

6. Take it Slow

To better your approval odds, do not apply for credit cards too rapidly. It can be tempting with all the credit card junk-mail we all receive, but applying too often can hurt your score and your odds of approval.

Similarly, if you apply for a card and are declined, it may be helpful to wait a few months before applying for a different card.

Hopefully these tips have been useful in helping you get approved for the card you want!

If you apply for a card and are declined, you can always call in to discuss the situation with a credit analyst. You may be able to provide more information and potentially even reverse the decision. And if not, you can at least get more information on why you were declined, which can help you prepare for future applications.

How to Get a Chase Credit Line Increase: The Ultimate Guide to Raising Credit Limits with Chase

August 9, 2019 by Austin Meadows Leave a Comment

If you currently have a Chase credit card, you may be interested in raising your credit limit. Maybe you have an upcoming large purchase, or maybe you’re looking to improve your credit score by reducing credit utilization. Whatever your reasoning, this guide will show you how to get a Chase credit line increase easily!

We will cover some general information on how credit line increases work, tips to get approved, and some specific strategies that work well with Chase Bank.

How to Get a Chase Credit Line Increase

When it comes to Chase specifically, here’s how to go about raising your credit limit. There are two ways to request a line increase:

Online

To request a Chase credit limit increase online, head to this link on Chase’s website. You will need to log in, and then you can check if you have any existing offers for a line increase. This process is automated, so you should be able to know if you’ve been approved for an increase or not very quickly. In some cases, a Chase representative will call you to gather some more information.

If you don’t see an offer on your online account after following that link, you will need to call in to request a manual credit increase.

Phone

To raise credit limit with Chase over the phone, simply call the number on the back of your credit card. Tell the representative that you would like to increase your credit limit, and you will be transferred to the appropriate department. You can also try calling the credit analyst department directly at 888-245-0625.

5 Tips for Raising Your Credit Limit (with Chase or any other bank)

Wait for an automatic credit limit increase

Many credit issuers will automatically raise credit limits over time, if the customer demonstrates responsible use of credit and on-time payments. These automatic increases generally do not result in a pull to your credit, so they don’t have the same impact on your credit score as a manual request will. If you have the patience, waiting for an automatic increase is worthwhile.

2. Prepare for the call

Before you call in to request an increase, you want to prepare some things. First off, you’ll want to have a good reason for requesting the increase. Some good reasons include building credit and preparing for emergency situations. It’s also helpful to tell the rep why you think you deserve an increase (X months of on-time payments, customer for X years, etc.)

3. Be kind and respectful

When you make the call, treat the representative with kindness and respect, and you’ll get better results. This should go without saying! The rep you talk to has the power to approve or deny your request, so it’s important to stay on their good side and be respectful.

4. Request a reasonable increase

When you make the call, you may be given the opportunity to state a specific dollar amount that you would like to have your limit increased by. If this happens, have a number in mind, and keep it reasonable. In general, credit increases of 10-25% are fairly standard. It’s best to not request too much more than that.

5. Use credit responsibly

Before requesting an increase, you must prove to the issuing bank that you are worthy of the extra trust. This means you need to show a reliable and responsible credit use history. In other words, you need a history of on-time payments, reasonable credit utilization, etc. If you can’t demonstrate this responsibility, you are unlikely to be approved for a line increase.

What is a Credit Line Increase? How Do They Work?

A credit line increase is the raising of a credit limit on an existing credit account. Generally the term refers to increases on credit cards, but it could also apply to lines of credit, personal loans, etc. A credit increase can be requested on an existing credit account. It involves contacting the issuing bank to ask for your limit to be raised. If approved, the bank will raise your existing credit limit. The amount of the increase will depend on your creditworthiness, income, and other factors.

Keep in mind that if you request a manual credit line increase, your credit will most likely be pulled. This can have a temporary negative effect on your credit score. In this way, applying for a credit increase is similar to applying for a new credit card.

Automatic Credit Increases

Credit increases can also happen automatically. Some banks reward responsible credit use and payment history by automatically increasing your limit over time. Chase does do automatic credit line increases for some products, which can happen every 6-12 months if you use the card responsibly. So, you may find that you get an automatic credit line increase with Chase. If not, you’ll have to contact the bank – keep reading for tips on how to get the best results.

Opening a New Credit Card (Alternative to Credit Increases)

There is another alternative to raising your credit limit that’s worth considering, and that’s opening an entirely new credit card. In many ways, this accomplishes the same goal as a line increase, as it gives you access to more credit than you had previously. There are pros and cons to this approach, outlined below.

Pros

Wider choice of options (you can get a card with useful perks for you)
If approved, you’ll have access to more credit
Many credit cards come with signup bonuses
Credit limits on new cards may be even higher than any credit line increase you would be offered

Cons

Opening a new account will lower your average age of accounts, which could impact your credit score
You may or may not be approved for a new card
It can sometimes be more difficult to be approved for a new card vs. a line increase

If you do decide to go this route, check out our list of the best credit cards available today.

That’s all you need to know about how to raise Chase credit limits. If you have any questions, don’t hesitate to leave a comment below!

CreditLiftoff Credit Score Improvement Guide: 10 Insanely Actionable Tips To Improve Your Credit Score in 2019

August 7, 2019 by Austin Meadows Leave a Comment

When it comes to your overall financial health, your credit score is an essential part of the puzzle. Credit scores are used extensively when applying for any sort of credit card, mortgage, or other form of debt. Beyond that, your credit score can also impact your ability to rent an apartment or even get a job. Suffice it to say, your credit rating is hugely important in the modern era.

So, how do you improve your credit score?

It starts with understanding the various factors that influence your credit rating. Next, specific steps can be taken to help improve your credit score. Let’s start with the basics.

Understanding the Elements of the FICO Credit Score

FICO is the most commonly used credit scoring model, with more than 90% of financial institutions using it for risk assessment. So while there are other models, it’s FICO that you should pay the closest attention to. Here are the 5 factors that contribute to the FICO credit scoring model:

Payment history
Credit utilization
Length of credit history
New credit
Credit mix

credit score factors — Source: MyFico.com

This list is in order of importance – so payment history has the biggest impact on your score, followed by credit utilization, etc. Below, find more detailed information on each of these factors and how they affect your credit score.

1. Payment History – 35% of FICO score

Payment history makes up 35% of your credit score. This means that it’s by far the most important factor that contributes to your credit rating.

Payment history is straightforward: the scoring factor takes into account how many on-time payments you’ve made, and if you’ve had any missed or late payments. Payments for both revolving credit (credit cards, etc.) and installment loans (mortgages, etc.) are taken in to account.

To improve this credit scoring factor, simply make on-time payments every month on all your lines of credit.

2. Credit Utilization – up to 30% of FICO score

Credit utilization makes up up to 30% of your credit score. It’s the second-most important factor.

Credit utilization refers to the percentage of available credit that you’re actually using. So for example, if you have a $10,000 credit limit and you have a balance of $3,000, your credit utilization is currently 30%.

This factor is calculated very frequently, and it does not take into account your past behavior. It’s more of a snapshot factor, that only looks at what’s going on right now. Also, remember that credit utilization looks at all your credit accounts. If you have multiple lines of credit, your credit utilization will be the percentage of your total credit limit that’s in use (across all your accounts).

To improve this credit scoring factor, try to keep your credit utilization low – ideally under 30%. You can also keep older cards open to maintain your credit limits.

3. Length of Credit History – 15% of FICO score

Length of credit history makes up 15% of your credit score.

The factor looks at all your credit accounts and determines how long you have had a credit profile. In general, the longer your credit history, the better your score for this factor will be.

To improve this credit scoring factor, keep old accounts open and in good standing.

4. New Credit/Age of Accounts – 10% of FICO score

New Credit makes up 10% of your FICO score.

This factor looks at how many new credit accounts you have opened in the last few years. It takes into account your average age of accounts, as well.

Opening new accounts will not necessary ding your credit score. However, opening several new accounts can significantly reduce your average age of accounts, and potentially send a negative signal to credit issuers.

To improve this credit scoring factor, try to only open new credit accounts when they are actually needed. Don’t open more than one at once unless absolutely necessary.

5. Credit Mix – 10% of FICO score

Credit Mix makes up 10% of your FICO score.

This factor looks at the different types of credit accounts you have and have had in the past. Generally speaking, having a mix of account types is beneficial. So, someone with 2 credit cards, 1 car loan and 1 mortgage will likely score higher in the credit mix factor than someone with 4 credit cards – even though they have the same total number of accounts.

To improve this credit scoring factor, try to use a variety of credit types if you have a need for them.

How to Improve Your Credit Score

Now you understand the basics of how credit scores are calculated. But how do you actually improve your score?

Using the knowledge we just gained about credit scoring factors, we can make specific changes in order to signal the credit bureaus that we are trustworthy users of credit.

Below, find our unique method to finally get your credit score where you want it to be: the CreditLiftoff Credit Score Improvement Guide!

CreditLiftoff Credit Score Improvement Guide: 10 Ways to Improve Your Credit Score

Below, find many different methods you can use to improve your credit rating. While each method can help, these are generally listed in order of importance – so you should start at the top of the list.

1. Monitor and Understand Your Credit Score

You can’t fix a problem that you don’t first understand, which is why our #1 recommendation is to monitor your credit score and work to understand why it is what it is. Only then can you start to make positive changes that will improve your credit.

The best way to do this is to use a free tool like Credit Sesame (or Credit Karma). These free services analyze your credit data to show you an approximate score. But more importantly, they show you the factors that are influencing your score. They also help you watch out for fraudulent account openings, incorrect credit reporting, and more. You can also request a full free credit report once per year to get a more complete picture.

Bottom line: By knowing your current credit score and understanding any factors that may be affecting it, you can make more informed choices about how to improve your FICO score.

2. Pay Off Your Bills on Time

Paying off your bills on time is one of the most important things you can do to build credit and maintain a good credit rating. Payment history makes up 35% of your credit score, so it’s a huge factor to stay on top of.

If you have had late payments or missed payments in the past, all you can do is keep paying on-time and watch your credit score recover. If you have never had a missed payment, just keep doing what you’re doing!

Note: It’s worthwhile to set up autopay on all your credit accounts, so that you don’t accidentally miss a payment!

Bottom line: Paying your bills on time will dramatically improve your credit score over time. Set up auto-pay to automate everything!

3. Keep Old Accounts Open

If you have older credit accounts, it may be wise to keep them open. This is particularly true for credit cards with no annual fee, as there is no cost or hassle involved with keeping them open.

Older credit accounts help to boost your average age of accounts, which is a significant credit factor.

Not sure what to do with an old credit card? Check out our article on what to do with unused credit cards.

Bottom line: Keep your old credit cards open to improve your age of credit accounts. Even if you don’t use them often, it’s beneficial to have them kept open.

4. Pay Off Debt

If you have existing debt, paying off some or all of it will likely improve your credit score. Now, this doesn’t mean that you have to entirely pay off your mortgage, your car loan and your credit cards all at once. However, the more you can pay off the better your financial health will be – and your score will likely improve, as well.

Your level of debt compared to your total credit limit available to you is referred to as your credit utilization. Keeping credit utilization low helps to improve your credit score.

Bottom line: Pay off as much debt as you can, to help improve your financial health and your credit score. Aim to keep credit utilization under 30% (so less than 30% of your available credit across all accounts).

5. Dispute Inaccuracies on Your Credit Reports

Credit reports should be accurate, but in many cases errors do happen. Sometimes credit issuers report that you missed a payment when in fact it was made on time. Or, an account may have been reported as closed when it’s still open.

You can use a tool like Credit Karma to monitor your credit (see #1), and can also download a complete credit report once per year. When you do, make sure to look closely at each mark against you to make sure there’s nothing inaccurate.

Check out this guide on how to dispute credit report errors for more information.

Bottom line: Errors do happen, even on credit reports. Check your report frequently and dispute any errors to protect your credit health.

6. Submit Phone & Utility Bills to Build Credit

Credit reports monitor your bills with credit card companies, medical billing companies, mortgage providers, etc. However, they generally do NOT take into account payment history from things like phone bills, home utility bills, etc.

Fortunately, a new program called Experian Boost aims to help fix this problem. The free service allows you to manually submit your utility bills to be added to your credit profile. This can help improve the payment history aspect of your credit score.

We put together an Experian Boost review if you’re interested in learning more.

Bottom line: This free service can help flush out your credit profile by including utility bills in your payment history.

7. Only Open New Accounts as Needed

Opening new credit accounts won’t necessarily hurt your score, but you shouldn’t overdo it. By sticking to only opening new lines of credit when they’re actually needed, you can help preserve your average age of accounts and reduce the risk of overspending.

With that said, if you have a need for a new credit product, there’s generally no harm in opening one up. It can actually help your score in some cases. The trick is to not open too many accounts, too fast – and to avoid unnecessary lines of credit.

Bottom line: If you have a genuine need for a new credit product, go ahead and get it. However, you should avoid opening too many accounts or any unnecessary accounts to help build your credit score.

8. Avoid Excessive Credit Inquiries

Every time you apply for a new line of credit, the issuing financial institution will pull your credit (known as a “hard pull“). You may also have your credit pulled when applying for a lease or even a job, potentially. Every one of these credit pulls results in a credit inquiry on your credit report.

Credit inquiries on your profile are not inherently negative. However, too many inquiries can reduce your credit score temporarily. If you have 3 or 4+ recent inquiries on your profile and apply for a new line of credit, the issuer may be hesitant to approve you. So, it’s best to avoid excessive inquiries by not applying for multiple things at once, and only applying for credit when it’s actually needed.

With all that said, remember that credit inquiries only affect your credit score temporarily. Every credit inquiry will stay on your account for 2 years, but it will only affect your score for 12 months.

Bottom line: Avoid excessive credit inquiries by only applying for credit when you actually need it.

9. Consider Becoming an Authorized User

If you have a relatively short credit history, there’s another method you can use to potentially boost your credit score. It’s called becoming an authorized user on someone else’s credit card. This will require the help of someone close to you that trusts you explicitly. Spouses, partners and parents are good options.

If you have someone in your life that trusts you, they can add you to their credit card account as an authorized user. This gives you your own credit card and access to their entire credit limit. Whether you actually use the card or not, this can help improve your score if they themselves have good credit and the account is well-aged. Nerdwallet notes that this strategy is really only effective for people with limited credit history.

Bottom line: If you have a short/limited credit history, becoming an authorized user on someone else’s account may help boost your FICO score.

10. Raise Your Credit Limits

If you carry some debt, raising your credit limits on one or more credit cards may help. This is because it can lower your credit utilization ratio. For example, if you have a total credit limit of $10,000 and you currently have $4,000 in credit card debt, your current credit utilization is 40%. But if you managed to raise your credit limit to $12,000, your utilization would go down to 30%. This may help improve your credit score.

If you have demonstrated responsibility with on-time payments, your credit card issuer may be willing to raise your credit limit. You’ll just need to call in and ask!

However, we do NOT recommend this method if you have trouble with overspending. The point of this strategy is to raise your limits without gaining additional debt. You want to get a higher credit limit, but you don’t want to actually use it!

Bottom line: Raising credit limits can lower credit utilization, helping to boost FICO scores.

Final Thoughts

Now that you’ve read all about how to improve credit scores, it’s time to take some steps towards a better financial future! And remember, changing your credit score can take a long time, so don’t expect immediate results.

If you follow the steps listed in this detailed guide, we are confident that your credit score will improve over time. And in addition to these tips, make sure you’re using credit responsibly in general.

Top 10 Travel Credit Cards For 2019 (and Beyond)

July 20, 2019 by Austin Meadows Leave a Comment

If you are reading this guide, chances are you like to travel! And if you do like to tour the world, you surely know that making smart financial choices can make travel easier, cheaper and ultimately more enjoyable. One very important decision you can make is selecting a good credit card for traveling. This guide will help by listing the best travel credit cards of 2019, and explaining how to choose the right one for you.

Even if you are someone who doesn’t usually use credit cards, it’s still worthwhile to get one for your upcoming trip. The benefits of the top options include travel perks like airport lounge access, no foreign transaction fees, and lucrative rewards on travel related purchases. Keep reading to help find the best option for you!

Choosing the Best Travel Credit Card

Selecting the best travel credit card is going to be an individual process for each consumer. The most important questions to keep in mind when you review our top picks include the following:

How often do you travel?
Are you willing to pay an annual fee?
Is there a particular airline you prefer to travel with?
Do you travel internationally or domestic?
Do you have a good credit score? (Many premium travel cards require good to great credit)

Keep this in mind as we go through our list of the top travel credit cards for 2019. It is important to note that none of these credit cards charge foreign transaction fees and this will not be commented on individually for each card.

10. Delta Gold Card

Earn 30,000 miles with new customer sign up offer (after spending $1,000 on the card in the first 3 months)
Earn a $50 credit after making a Delta purchase in the first 3 months
Annual fee of $95, waived the first year
The first bag checked free with Delta

Pros: The Delta Gold Card offers a great sign up bonus for Delta Customers and a waived annual fee for the first year.

Cons: Delta miles are reported to have slightly less value than competing airlines which ranks it as slightly less valuable. This card also has a $95 annual fee after the first year.

Who this card is best for: For travelers who regularly travel with Delta, this card will be a winner due to the signup bonus and free checked bag.

Read our write up about the Delta Gold Card and maximizing your bonus offer for more information about this credit card!

9. Discover IT Miles Card

Earn unlimited 1.5x miles on all purchases
0% introductory interest rate for 14 months
Free FICO credit score
All rewards earned in the first year are doubled
No annual fee (one of the best no annual fee travel credit cards)

Pros: The Discover IT Miles Card has no purchase categories, which means every purchase you make is eligible for 1.5 miles. Discover will match your first-year bonus miles at a 100% rate. That means that every mile you earn in the first 12 months will be doubled!

Cons: No signup bonus (beyond the first-year doubling)

Who this card is best for: Consumers who are looking for a straightforward, no annual fee travel card will love the Discover IT.

8. Bank of American Premium Rewards

50,000 bonus point sign up offer (after spending $3,000 in the first 3 months)
2 points for each dollar spent on travel and dining
1.5 points for all other purchases
FICO Score
TSA/Global Entry Credit
$100 airline incidental credit

Pros: The Bank of American Premium Rewards Card allows cardholders to earn an even bigger rewards rate as a Bank of America preferred client (25-75% more depending on your tier). You can also use rewards for statement credit if you are not interested in spending on travel.

Cons: This card charges an annual fee of $95 and is only available for existing Bank of America clients.

Who this card is best for: This card will be best suited for Bank of America preferred clients who want to earn big reward rates.

7. Citi Premier Card

60,000 bonus point sign up offer (after spending $4,000 in the first 3 months)
3x points travel and gas 2x points dining and entertainment
25% bonus when booking through ThankYou Travel Center
Point transfers available for partner airline programs

Pros: The Citi Premier Card provides an excellent signup bonus with the ability to earn additional value from rewards when you book travel with The ThankYou Travel Center. Rewards points have flexible uses.

Cons: The annual fee comes in at $95 for this credit card.

Who this card is best for: This card is great for anyone looking for a generous signup bonus and high reward rates. The card will appeal to customers who don’t mind bucking up a modest annual fee.

6. American Airlines AAdvantage Platinum Select

50,000 mile signup bonus (after spending $2500 in the first 3 months)
The annual fee is waived for the first year
The first bag is checked free for the cardholder and up to 4 companions
Preferred boarding with American Airlines
2x miles for gas, dining and AA charges

Pros: The American Airlines AAdvantage Platinum Select offers a great sign up bonus that will easily cover substantial travel with American Airlines. Customers who make this their daily spending card can earn an additional $125 AA credit when they spend $20,000 annually.

Cons: This card has a $99 annual fee after the first year (waived for year one).

Who this card is best for: This card is ideal for frequent American Airline Travelers who are looking to make this their daily spending card.

5. United Mileage Plus Explorer Card

40,000 bonus mile signup bonus (after spending $2,000 in the first 3 months)
2x points with United, dining and hotels and 1x for all else
Free checked bag for cardholder and companion with United
Global Entry/TSA Pre-check credit
$95 annual fee; waived first year

Pros: The United Mileage Plus Explorer Card is one of the most “versatile” branded airline cards. United offers a huge selection of domestic and international flight options. The signup offer includes a 40,000 bonus miles after spending $2,000 in the first 3 months. The first-year annual fee is waived with this current promotion. Customers also receive 2 United Club Passes each year for access to United airport lounges.

Cons: $95 annual fee after the first year.

Who this card is best for: This card is great for travelers who do not have set plans. Because United travels just about everywhere, the bonus points are very useful for travelers both domestic and internationally. It’s also a good choice for people who don’t have access to Priority Pass or another airport lounge program, as the United Card offers 2 free lounge passes each year.

Read our full write up about The United Explorer Card for more information about this credit card!

4. Barclaycard AAdvantage Aviator Red

Earn 60,000 bonus miles with sign up (after making a single purchase)
Earn a companion certificate for the first year
First checked bag free on American Airlines
2x miles on AA purchases
Preferred boarding and other benefits on AA flights

Pros: The Barclaycard AAdvantage Aviator Red offers one of the best travel signup bonuses of any credit card, while also having one of the lowest requirements to receive the bonus. You just need to make a single purchase on the card, and pay the $99 annual fee, and you’ll receive 60,000 miles PLUS a companion certificate!

Cons: $99 annual after the first year. Ongoing benefits are not very enticing.

Who this card is best for: This card is great anyone who is unable to meet the higher spend requirements of many premium travel cards. To get the signup bonus on the Aviator, you simply have to make a single purchase and pay the annual fee.

3. Southwest Rapid Rewards Priority Card

Earn 40,000 miles points with the signup offer after spending $1000 in the first 3 months
7,500 points awarded annually on your card anniversary
$75 annual travel credit with Southwest
7500 Southwest points every year on your cardmember anniversary
4 upgraded boardings each year on available flights
Points count towards the companion pass

Pros: The Southwest Rapid Rewards Priority Card offers great value for Southwest Customers. While the exact value of points/miles with airline cards can vary, Southwest routinely comes in as one of the top value in terms of the points they offer. Southwest provides flights throughout the US including some international locations (such as Mexico). The annual fee is partially offset with 7,500 annual points awarded to cardholders. The bonus offer also requires a very low spending threshold ($1,000).

Cons: High annual fee of $149.

Who this card is best for: This card will appeal to domestic travelers who regularly use Southwest. Because Southwest is known for its budget pricing your points will go further than many competitors.

Read up on more information about the full family of Southwest Credit Cards with our full review.

2. Chase Sapphire Reserve

50,000 bonus points for new cardholders (after spending $4,000 in the first 3 montsh)
Annual travel credit of $300
Airport lounge acces
Exclusive travel benefits
3x points for dining and travel
50% bonus when booking travel with Chase Ultimate Rewards

Pros: The Chase Sapphire Reserve Card offers a big sign up bonus but the real appeal is the yearly $300 travel credit. Along with the 3x bonus category, cardholders will earn free travel very quickly with this card. Plus, you’ll enjoy lots of exclusive travel perks: Priority Pass lounge access, rental car damage protection, no foreign transaction free, the ability to transfer points to travel partners, and more.

Cons: This card has a huge annual fee of $450. While the bulk of this fee is offset by the annual travel credit, this fee may still be prohibitive for many consumers.

Who this card is best for: This card is ideal for very frequent travelers who are looking for one of the most premium travel cards on the market. There are many additional travel features and exclusive benefits with this card that will appeal to high-end travelers.

1. Capital One Venture Card

Earn 50,000 miles with sign up offer (after spending $3,000 in the first 3 months)
All purchases are eligible for 2x miles
First year annual fee waived – $95 dollars after the first year
Earn 10x miles on hotel purchases with hotels.com
TSA Pre-check/Global Entry Credit

Pros: The Venture Card is a great card for general travel with a generous signup bonus and an every 4-year credit for TSA Pre-Check or Global Entry. Add in the fact that all purchases earn a flat 2x miles, cardholders will quickly be traveling for free. It also has a very flexible rewards currency that can be used for just about anything travel-related.

Cons: $95 annual fee after the first year.

Who this card is best for: This card is perfect for travelers who want general travel options with their card. You can use your points for any aspects of your travel – hotels, flights, and more.

How To Use This List

This list includes 10 of the top travel credit cards – many other options exist but these are some of our favorites. There was a weight given towards select airline credit cards due to the overall popularity of these airlines. Airline-branded credit cards are great opportunities for travelers due to their notoriously high sign up bonuses. A branded airline credit card is generally a great plan if intend to fly with this airline regularly. Customers should make their travel card decision based on their personal habits and what they feel comfortable paying for an annual fee.

This list should be seen as a guide based on some of the best reward rates and sign up offers. Your best match may not be based on this same criteria. When you are looking for a travel card – envision your dream trip and then, ask yourself how a potential card will help you achieve that destination!

What Makes a Great Travel Credit Card For You?

The most obvious factor is that if you fly regularly with a particular airline, their branded credit card is likely to be a good choice. The bonus offers for the cards in this list all have a value well in excess of their associated annual fees. Typically, the bonus offer alone would account for several years of an annual fee. While burning (or churning, as it is often called) through credit cards for sign up offers is not going to be a particularly smart decision for many consumers – it is worth noting that signup bonuses allow you to pay an annual fee for several years before you are in the red on the card.

If you consider yourself a “general traveler” – for instance, you do not have a dedicated airline or particular destinations – then cards like the Arrival Plus, Venture Card, Citi Premier Card, or The Bank of America Premium Rewards Card may be great for you. These cards offer general travel points/miles which can be redeemed for any sort of travel with many airlines and destination options. Finally, if you are dead set against paying an annual fee, a card like the Discover IT Miles may be a great choice.

Do you have a favorite travel credit card? Let us know in the comments below and we will consider updating this list with any new suggestions!

Best Credit Cards of 2019: Our Top Picks for Every Category (The Definitive Guide)

July 17, 2019 by Austin Meadows Leave a Comment

Looking for a new credit card to suit your needs? There are hundreds of options out there, so how do you pick just one? Well, you can start with our list of the best credit cards of 2019, right here!

Finding a single “best” credit card really depends on your situation and goals. Are you a traveler looking for a miles credit card? Are you new to credit or have poor credit history? Or do you just want to keep things simple with a cashback card? In any case, you can find the perfect credit card for you in the guide below – broken down into specific categories.

Related Content: Walmart Card Reviews and Definitive Guide

This guide is intended to provide the information, tips and tools you need to make an informed decision. Beyond our picks for top credit cards, you’ll also find a list of FAQs and other helpful information!

Best Cashback Rewards Credit Cards

If you’re looking for a card to reward you for every purchase, with a simple cash-back rewards program, these are our top recommendations. For more options, see our guide to the best cashback credit cards.

Flat 2% Rewards Card: Citi DoubleCash

At a Glance: Simple and straightforward – 2% cashback on every purchase, with no limits or restricted categories
Annual Fee: None
Perks: Easy to understand rewards structure; good intro APR offers; no annual fee
APR: Standard APR 15.74% – 25.74% depending on credit. Comes with 18-mo 0% intro APR offer
Rewards: 2% cashback, split into 1% on every purchase, and 1% when you pay off the bill (2% total).
Signup bonus: None (18-month 0% intro APR on balance transfers)

The Citi Double Cash is one of the best credit cards of 2019, particularly for those who like to keep things simple. This card has no annual fee to worry about, and offers a competitive and straightforward reward rate of 2% cashback. You won’t need to learn any complex points or miles systems, as the card earns simple cashback. Keep in mind that the card technically earns 1% on all purchases, and 1% when you pay the bill. This adds up to 2% cashback on every purchase; but you won’t earn the second half until you actually pay the bill.

You’ll need fairly good credit to be approved for this card. If you are approved, you may be able to take advantage of the 0% APR transfer offer. If you have debt on other cards that you’re paying interest on, transferring those debts to your new Double Cash can help you save on interest. There is no signup bonus on this card – however, the 0% intro APR could easily save you a fair amount of money.

Check out our full Citi Double Cash review to learn more about this card!

Tiered Rewards Card: Uber Visa

At a Glance: Generous perks, a $100 signup bonus, and up to 4% cashback!
Rewards: 4% for restaurants and bars; 3% back for airfare and hotels; 2% back for all online purchases; 1% for any other purchases
Annual Fee: None
Signup bonus: $100 cash signup bonus after you spend $500 in the first 90 days

The Uber Visa card is a surprisingly good credit card, that offers a juicy reward structure and some solid perks. It’s a bit more complex than something like the Citi Double Cash, but for those who want to squeeze more value out of their credit cards, this is a great choice.

The big value of this card is in the tiered cashback structure, which will reward you with a different rate depending on what you’re purchasing. The Uber Visa earns rewards as follows:

4% on bars, restaurants and fast food
3% on certain travel expenses, including AirBNB, hotels and airfare
2% on online purchases (including Uber)
1% on everything else

The 4% rate makes this one of the best credit cards for dining out, and probably the best that doesn’t have an annual fee. The other rates are solid as well. Depending on your spending habits, this card could be more lucrative than the Double Cash in terms of rewards.

The Uber Visa has no annual fee, and some surprising benefits: a $50 credit for subscriptions like Spotify or Netflix (you must spend $5k on the card per year to qualify), a $100 signup bonus, and even cell phone insurance if you pay your phone bill with the card! Cardmembers also enjoy access to exclusive events in select cities, no foreign transaction fees, and more!

Read through our Uber credit card review to learn more!

Best Credit Cards for Bad Credit

Looking for a credit card that you can be approved for with less-than-stellar credit? We’ve got you covered. You have two choices when looking at low credit options – either get a secured card, which requires a deposit, or an unsecured card, which won’t require a deposit but will likely have more fees.

In our opinion, the best credit cards to build credit are almost always secured cards like the Discover it Secured. In general the unsecured cards simply have too high of fees – and too low of credit limits – to be worthwhile. So, we recommend sticking with secured cards until you build up your credit profile. Find our top picks below – or check our best credit cards for poor credit guide for more options.

For No-Annual-Fee: Discover it Secured

At a Glance: A great option for those with poor credit. Requires a security deposit, but earns rewards and has no annual fee.
Annual Fee: $0
APR: 25.24% variable
Perks: No annual fee; earns rewards (most similar cards do not); easy to be approved for
Rewards: 1% cashback on everything; 2% cashback on gas stations and restaurants (2x rate is limited to $1,000 in purchases each quarter).
Signup Bonus: None

The Discover it Secured is our top recommendation for a card for poor credit. The reason we picked this card as the best credit card for low credit is because it has no annual fee, earns a solid reward rate on purchases, and is quite easy to be approved for compared to many cards.

Keep in mind that this is a secured credit card, which means you’ll need to make a deposit into a locked account in order to get the card. This helps banks to extend credit to folks who they wouldn’t otherwise be able to approve. This card has a minimum deposit of $200, so if you sign up and are approved you will need to deposit $200 (this money is still yours – but you won’t be able to access it until you close the card, or until Discover decides your credit is sufficient to convert you to an unsecured option). This article explains more about how secured credit cards work.

This is a good credit card for building credit because Discover reports to all the major credit bureaus. This contributes to your credit history and will improve your score if you pay on time. If you use the card responsibly, Discover will convert it to an unsecured credit card (and refund your security deposit) in as little as 8 months.

If you have poor credit or just a limited credit history, this card is a great choice!

For a Signup Bonus: Amazon Credit Builder Secured

At a Glance: A secured credit card from a trusted company. Offers a small signup bonus, no annual fee, and some perks for Amazon shoppers.
Annual Fee: $0
APR: 28.24% variable
Perks: A secured card that actually earns rewards; perks for Prime members
Rewards: 5% cashback on select Amazon Prime purchases
Signup Bonus: $40 Amazon.com gift card

The Amazon Credit Builder Credit Card offers another good option for folks with low credit scores or a lack of credit history. It’s a secured card, so you will be required to make a security deposit. However, there is no annual fee, and the card even comes with a signup bonus of a $40 Amazon.com credit card. This is one of the only low credit credit cards that comes with a signup bonus. Even better, the card earns 5% back on select Amazon Prime purchases!

This credit card just launched recently, and is Amazon’s latest move into financial services. If cardholders of the Credit Builder card improve their credit over time, they will be able to convert the card into the Amazon Store Card, an unsecured standard credit card.

You can learn more in our Amazon Credit Builder review.

Best Credit Cards for Fair Credit

What if your credit is just “okay”? Fair credit is generally considered to be a FICO score between 580 to 670, although there are many factors. If you are in this middle-ground, you’re unlikely to get approved for high-end cards, but you can also skip the low-credit options. The two picks below are great choices – and you can find more in our best credit cards for fair credit article!

For No-Annual-Fee: Capital One Platinum

At a Glance: A simple, no-frills credit card with no annual fee, and the opportunity for automatic credit line increases.
Annual Fee: $0
APR: 26.99% variable
Perks: Automatic credit line increases possible; no annual fee; free access to credit monitoring service; no foreign transaction fee
Rewards: None
Signup Bonus: None

The Capital One Platinum is good option for folks who have decent credit and want a simple card with no annual fee. It’s issued by a trustworthy bank, and is fairly easy to get approved for. The card is simple, but it does have a few perks – such as no foreign transaction fee, car rental damage waivers, and extended warranty coverage.

The Platinum does not earn any sort of rewards, so that’s a noteworthy downside. Then again, it doesn’t have an annual fee, while most similar products do. The card is fairly easy to get approved for, but your initial credit limit will likely be low. Once you’ve made 5+ on-time payments, Capital One will consider you for a credit line increase.

Overall, the Capital One Platinum is not a particularly exciting card – but it’s a solid option for folks with decent credit who want a simple credit card.

For Rewards: Capital One QuicksilverOne

At a Glance: 1.5% cashback on all purchases, and a low annual fee – built for average credit
Annual Fee: $39
APR: 26.99% variable
Perks: Cashback on every purchase; extended warranty coverage; no foreign transaction fees; auto rental damage waiver
Rewards: 1.5% cashback on all purchases
Signup Bonus: None

The QuicksilverOne card is a good option for folks with average credit who still want to earn rewards. It offers a flat 1.5% cashback on all purchases, so a $100 purchase would net you $1.50 in cashback.

On the other hand, keep in mind that this card does have an annual fee – $39 per year. This compares to the Capital One Platinum (above), which has no fee but doesn’t earn rewards. You’ll want to do the math to see which one makes more sense for you. If you spend more than $220 a month on your credit card, then you’ll come out ahead with the QuicksilverOne, as you’ll earn at least $39 in cashback to cover the annual fee. If you typically spend less than that, you should go with the no-fee Platinum.

Best Rewards Cards for Travelers

Like to travel? Then you’ll definitely want to pick up a travel rewards credit card to help you save money on your adventures. There are several types of travel card – airline cards, hotel cards, and flexible cards. We outline one from each category below. For other options, our best travel credit cards roundup has lots more!

For Simplicity & Flexibility: Capital One Venture

At a Glance: Flexible rewards points make it easy to redeem points for any sort of travel charge – and the card earns a generous 2% back on every purchase.
Annual Fee: $0 for the first year; $95 after that
APR: 17.99% to 25.25% depending on credit worthiness
Perks: Simple reward structure; no foreign transaction fee; travel insurance;
Rewards: 2 miles per $1 spent on all purchases; 10 miles per $1 spent on Hotels.com. Miles are worth 1 cent each towards travel
Signup Bonus: 50,000 bonus miles after spending $3,000 within the first 3 months

Update: this spot previously belonged to the Barclays Arrival+. However, that card was recently discontinued, so we now recommend the similar Capital One Venture.

The Capital One Venture is a excellent choice for travelers. It offers a simple and straightforward rewards program. The card earns “miles”, which can be used towards any travel purchase at the rate of $0.01 per mile. So, this card essentially earns 2% cashback on all purchases, and 10% back on Hotels.com purchases.

Miles can be redeemed for any travel expense. Simply put a travel charge on your card, and you’ll be able to redeem miles to “erase” the charge. This provides a ton of flexibility. For even more flexibility, you can now transfer Venture miles to select travel partners.

This card also has lots of perks for frequent travelers that are well worth the annual fee. However, if you’d rather not pay a fee, there is a no-annual-fee version of the card called the VentureOne.

For Premium/Frequent Travel: Chase Sapphire Reserve

At a Glance: A high-end, premium credit card ideal for frequent travelers. Offers incredible perks, but with a very high annual fee.
Annual Fee: $450
APR: 19.24%–26.24% variable
Perks: $300 annual travel credit; rental car damage insurance; excellent rewards rates on travel and dining; Priority Pass membership for airport lounges; much more
Rewards: 3x points on travel and dining; 1x points on everything else (points worth $0.01-$0.015+ each)
Signup Bonus: 50,000 points (worth $750 towards travel) after spending $4,000 in the first 3 months

The Chase Sapphire Reserve credit card is definitely not for everyone – the $450 annual fee will certainly scare a lot of people off. However, for frequent travelers, the card is well worth the fee, surprisingly! The fee is largely offset by a $300 annual travel credit, that “erases” the first $300 of travel charges you make every year. This includes any type of travel, from plane tickets to subway passes and even Uber/Airbnb and more.

So, assuming you spend at least $300 on travel a year, the annual fee is really more like $150 – still significant, but not as jaw-dropping! The CSR comes with a plethora of perks, though, including:

Rental car damage waiver (so you can decline the expensive rental car insurance)
Priority Pass Select membership which gives you and 1 guest free access to hundreds of airport lounges worldwide
No foreign transaction fees
Trip cancellation/delay insurance
Emergency medical evacuation insurance
Reimbursement for Global Entry or TSA Pre+ fees
Much, much more

The signup bonus and ongoing rewards earning rates are also quite juicy. You’ll earn 3 points per $1 spent on travel and restaurants worldwide, and the signup bonus is 50,000 points! Points can be used for plane tickets and hotel rooms at 1.5c per point, redeemed for cash/giftcards, or transferred to travel partners. If you use your points for plane tickets, that means you’re effectively earning 4.5% back on every travel and dining purchase!

Best Student Credit Cards

Are you a student? In general, students should look for credit cards with no annual fee, perks for students and cards that are relatively easy to get approved for. Many students won’t necessarily have a good credit history built up, so they should stick to credit cards designed for students and those with limited credit history. Our top picks are listed below!

Brushing up on your finances as a student? You might also consider checking out student loan refinancing options!

For Rewards & Good Grade Perks: Discover it Student

At a Glance: A no-annual-fee card that rewards you for every purchase, and even throws in a bonus for having good grades!
Annual Fee: $0
APR: 0% APR on purchases for the first 6 months; then 15.24% to 24.24% variable
Perks: $20 bonus each year your GPA is over 3.0; all cashback earned is doubled in the first year; free credit score access; free identity theft alerts
Rewards: 5% cashback on a rotating category (changes every 3 months); 1% cashback on everything else
Signup Bonus: None, but all the cashback you earn in the first year is doubled

The Discover it Student credit card is a great option for any student. It offers a lot of perks, while having no annual fee and a competitive APR rate. The rewards rate is stellar – 5% cashback on a rotating category, which changes every 3 months. For example, in Q1 of the year you may earn 5% on restaurants, and Q2 5% on gas stations and Uber/Lyft. If a purchase doesn’t fall into one of these 5% categories, you’ll still earn 1% cashback.

In addition to this, all cashback you earn in the first year will be doubled! So if you end up earning $150 in cashback over the year, you’ll get a $150 bonus for a total of $300. This card also rewards good grades, with a $20 bonus each year that your GPA is above 3.0!

The Discover it Student also gives you access to a free credit score monitoring program, as well as identity theft monitoring. This is easily the best student credit card – and all these perks come without an annual fee!

Best for Student Travelers: Bank of America® Travel Rewards for Students

At a Glance: A juicy 25,000 point signup bonus and good ongoing rewards help students save for travel – all with no annual fee.
Annual Fee: $0
APR: 0% APR on purchases for the first 12 months; 17.24% – 25.24% variable after that
Perks: Large signup bonus; no foreign transaction fee; redeem points for any travel charge; free access to FICO score
Rewards: 1.5 points per $1 spent on all purchases. Redeem points for any travel charge
Signup Bonus: 25,000 points (worth $250 towards travel expenses) after spending $1,000 in the first 3 months

The Bank of America® Travel Rewards Credit Card for Students is a great option for students who like to travel. With it you’ll earn a big signup bonus that will essentially erase up to $250 worth of travel charges. And every purchase will also earn you 1.5% rewards, which can further reduce your travel expenses!

The points you earn are easy to redeem – just make a travel purchase with your card, and then redeem points to “erase” the charge. This card also has various perks for travel, such as no foreign transaction fee (which is around 3% on many cards).

If you’re a student who likes to travel, this card’s signup bonus and travel perks make it well worth it. And it has no annual fee!

Best Credit Cards for Balance Transfers

If you have credit card debt, it may be worthwhile to look into a balance transfer to another card with a lower interest rate. Many cards offer 0% introductory APRs for balance transfers, which can save you a bundle if you’re currently paying interest. Just be aware of any balance transfer fee the new card may charge, as this can offset savings in interest payments. The balance transfer process is explained well in this guide – and for now, see our best balance transfer credit card picks below.

Lowest Fees: Chase Slate

At a Glance: One of very few cards to offer 0% APR AND no balance transfer fees – our top pick for balance transfers.
Annual Fee: $0
APR: 0% for the first 15 months (purchases & balance transfers), 17.24%–25.99% after that
Perks: No balance transfer fee; 15 months of 0% APR, no penalty APR, no annual fee
Rewards: None
Signup Bonus: None (intro APR offer)

The Chase Slate is easily the best credit card for balance transfers for one simple reason: It does not charge a balance transfer fee for your first 60 days. That means you can transfer in all your other existing debts for the first 2 months, without paying a fee (which would typically be 3-5% of the amount transferred). In addition to this, the balances you transfer (and additional purchases you make) will get a 0% APR rate for the first 15 months!

Additionally, the Chase Slate has no annual fee, no penalty APR, and includes access to a free credit monitoring program. See our full review of this card for more information.

This card can easily save you a ton of money – let’s check out an example.

Let’s say you currently have $10,000 of credit card debt, and you’re paying 24% APR. That means you’re currently spending $200 a month, or $2400 a year, on interest charges. If you transfer that debt to the Chase Slate, and continue making payments, you’ll pay 0% APR for the first 15 months – saving you $3,000 in interest charges! In addition, you’ll also save $300-$500 that most other cards would charge you as a balance transfer fee. Not a bad deal!

Longest Intro APR Period: Citi Simplicity

At a Glance: A 21-month 0% APR on balance transfers may save you more; although this is offset by a 5% balance transfer fee.
Annual Fee: $0
APR: 0% APR for 12 months on purchases & 21 months on balance transfers; after that, 16.99% – 26.99% variable
Perks: Longer 0% APR period; no annual fee
Rewards: None
Signup Bonus: None (intro APR offer)

The Citi Simplicity card is best for transferring larger balances, because it offers a longer 0% intro APR period. For balance transfers, you’ll get a full 21 months of 0% APR, and for purchases you’ll get 12 months of 0% APR.

However, the Simplicity does have a high balance transfer fee of 5% – so you’ll want to do the math and compare it to the Chase Slate. The longer 0% APR period must be compared to the 5% fee – and the math depends on the amount you transfer.

Using the same example from above, if you transfer a $10,000 debt, you’ll be saving about $200/month on interest charges. Since the Simplicity offers 6 months more of 0% APR than the Slate, you’ll save an additional $1,200 – but you’ll be charged $500 (5% of $10,000) for the initial balance transfer fee. This still works out to a savings of $700 over the Chase Slate.

On the other hand, for smaller balances, or people who plan to pay balances off quickly, the Chase Slate might make more sense. We recommend doing the math for your specific situation before choosing a balance transfer card for you!

Frequently Asked Questions

How do credit cards work?

When you use a credit card to make purchases, you are borrowing money from the issuing bank. If you pay off your balance in full at the end of the billing cycle, you will not pay any interest. However, if you carry a balance on the credit card, you are agreeing to pay the interest set out in the card’s terms. Credit card APRs (annual percentage rate) are usually quite high – often in the range of 25%. This means a $1000 balance would accumulate $250 in interest over the course of a year (and it would actually be slightly higher, because the interest builds on itself).

Because of the high interest, credit cards must be used responsibly. Ideally you should always pay off your balance in full every month. If you do this, a credit card can help improve your credit score while earning you rewards at no cost to you. But irresponsible use can easily spiral into a lot of debt and huge interest payments! See this guide to responsible credit use for more info.

How does credit card interest work? What is an APR?

Credit cards charge interest if you carry a balance on the card. The interest you are charged is based on your APR, or annual percentage rate. This APR is largely based on your credit history, while also taking into account the current prime rate. Generally speaking, the better your credit is the lower your APR will be.

Credit card APRs are usually quite high – around 18% to 26% or more, depending on your credit. Credit card interest is calculated daily, and interest charges will be added to your balance. Interest charges can accumulate rapidly, so be cautious using more credit than you can afford!

However, one important thing to understand is that you will not pay interest if you pay your card off in full every month. If you make purchases and pay your bill in full, you won’t pay a cent of interest!

How can I check my credit score?

Before you apply for a credit card, it’s recommended to check your credit score. This will give you a good idea of your odds of getting approved for a particular card, and help you monitor the health of your credit overall. Many factors influence your credit score, from the number of accounts you have to your payment history to your current credit card utilization.

There are several ways to check your score for free. You can order a full credit report from AnnualCreditReport.com once per year. Or you can sign up for a service like Credit Sesame or Credit Karma for free that will help you monitor and analyze your scores. We like these services because they actually explain why your score is what it is. The two services are pretty similar, but we generally prefer Credit Sesame. Lastly, some banks will provide credit info for free – for instance, Chase has it’s Chase Credit Journey feature for some people.

How should I go about choosing a credit card?

With so many options, it can feel overwhelming. How do you pick a good credit card? Start with the basics, taking note of:

The annual fee, if any
The rewards earning rate
How complex the rewards are (cashback is usually simple, miles/points a bit more complex)
The signup bonus, if any
The issuing bank and their reputation
The APR range (if you plan to carry a balance)
Any hidden fees
The features and perks of the card

Take these factors into consideration, and then consider closely your needs and wants for the credit card. Why are you getting a credit card in the first place? If it’s to pay for expenses that you can’t afford right now, you may want to look for a card with a low APR or even an intro 0% APR. If it’s to earn rewards for an upcoming trip, you’ll probably want an option with a big signup bonus.

What is the best type of credit card?

As you can see from the guide above, there are a variety of different styles and categories of credit cards. There are cards designed specifically for travelers, for students, and for folks just starting out building credit. With so many different categories, how do you choose? The answer will depend on your needs, but here are some things to keep in mind.

Travel credit cards generally offer good perks for travelers, such as no foreign transaction fees, points/miles for free travel, rental car insurance, etc. However, most travel cards have annual fees, so you’ll need to weigh the pros and cons. We recommend travel cards for folks with good credit and those who like to travel often.

Cashback credit cards give you a percentage of every purchase back, in the form of cash or statement credits. They are generally the simplest options, as there’s no complex point system to learn. There are many good options with no annual fee – however you can often squeeze more value out of travel cards. We recommend cashback cards to folks who like to keep things simple.

Cards for low/fair credit offer opportunities for people with less than stellar credit to still get credit cards. Their primary purpose is to help build credit. If you have a limited or negative credit history, these are really your only option. If you have better credit, there are better options.

Secured credit cards are made for people with very low/no credit. To get a secured card, you’ll have to put down a security deposit. You will usually get a credit limit that is the same amount as the security deposit. The only purpose of these cards is to help build credit. With that said, they’re often the best option for those with very limited credit history. See the section below for more details.

How can I get a credit card with no credit history?

If you have no credit history or a limited one, it will be more difficult for you to get a credit card – but that doesn’t mean you can’t get one at all! Usually the best option is to get a secured credit card, which will require a security deposit. For example, you might get approved for a secure credit card with a $300 limit – and you’d then be required to deposit $300 into a locked account. That money would stay in the account until the card is converted to unsecured, or until you close the card.

This is one of the best ways to build credit, because good secured cards don’t usually have annual fees. Using a secured card responsibly for a year or so can help you build up a good enough score to get a new standard card, or to convert your secured card into a normal credit card.

What do I need to apply for a credit card?

When you apply for a credit card, you will be asked to supply certain personal information. This includes your full name, legal address, social security number, and household income. Income is used to determine your credit limit, so be sure to report it as accurately as possible (although you can use household income, not just your own income). You may also have to answer certain verification methods.

What does a “pre-approval” for a credit card mean?

If you’ve ever received an advertisement in the mail for a certain credit card, you’ve probably noticed that they often use the term “pre-approved”. But what does being pre-approved for a credit card actually mean?

Essentially, the term means that the credit card issuer has already looked at your credit history and determined that you may be a good candidate for their card. It does NOT mean that you will automatically be approved – you will still need to apply for the card and can be approved or denied depending on your credit and income information.

How old do you need to be to get a credit card?

Generally, the minimum age for a credit card is 18 in the United States. For people under 18, the only way to get a credit card is to be added as an authorized user to a parent’s credit card.

Should I keep old credit cards open if I don’t use them?

If you have a few older credit cards sitting around that you don’t use, you’re probably wondering if you should close them or just keep them. In general we recommend keeping cards open, to help improve your credit score. However, if the card has an annual fee that’s a different story. See our guide on what to do with old credit cards for some examples.

Have a question of your own? Let us know in the comments and we’ll get back to you!

Best Credit Cards for Bad Credit (The Definitive Guide 2019)

July 17, 2019 by Austin Meadows Leave a Comment

Everyone should be able to get credit if they need it or want it. Thankfully, there are options for those of us with less-than-perfect credit scores. The best credit cards for bad credit offer low fees, competitive APRs, and the ability to rebuild credit through responsible credit card use.

Ironically, one of the best ways to build good credit is to use a credit card regularly and pay it off on time. However, for those of us with FICO scores between 300 and 601 (the range considered “bad credit”), getting approved for a credit card can be challenging! In order to improve your odds, you should choose from the list of best credit cards for bad credit, detailed below.

If you are looking for a credit card for low credit, you should keep a few things in mind:

There are a lot of low-quality, high-fee products targeting people with poor credit. Avoid these!
There’s no need to be ashamed of your credit score – an estimated 1/3rd of Americans have a FICO under 600!
Most credit cards for poor credit will be secured credit cards, which require a deposit. We’ll explain this more in a section below.
Before applying for a card, you should check your credit score/credit factors

We’ll list the best low credit credit cards below, but before we do, let’s go over some tips that every credit-seeker should know!

How to Monitor Your Credit

We recommend credit monitoring to all our readers – and particularly to those who would like to improve their credit scores!

The #1 way to do this – for free – is with a tool called Credit Sesame. Credit Sesame is a 100% free tool that helps you check and monitor your credit score.

Our favorite part about this tool is that it actually helps you understand your credit score, and why it is what it is. They go over credit factors like credit utilization, number of open accounts, your payment history, and all the other factors that affect your credit score.

Credit Sesame will help you understand how to improve your credit score, and they’ll even recommend products that may make sense for your situation. It’s a completely free service (they make money from advertising), and it won’t affect your credit score to sign up.

Credit Karma is another similar tool that does essentially the same thing. See our Credit Sesame vs Credit Karma review for a comparison.

Before selecting a good credit card for poor credit, we recommend getting a handle on your credit score by signing up for one of these free tools. Click here to learn more about Credit Sesame and get your free credit score!

Note; if you sign up and find that your credit score is better than you expected (over 600 or so), you might want to check out our guide to the best credit cards for fair credit.

Secured vs Unsecured Credit Cards

On our list of best bad credit credit cards, you will notice that most of them are secured credit cards. What does that mean?

Secured Credit Cards for Bad Credit

Secured credit cards are credit cards that require a security deposit in order to be used. Typically the deposit is the same amount as the credit limit you are given. So they work like this:

You apply for a secured credit card.
If approved, you will need to make a deposit into a type of savings account with the issuing bank.
Usually the deposit is the same as the credit limit. So you would make a $500 deposit, and be given a $500 credit limit.
These funds stay locked in this account, either until you close the credit card, or until the issuer deems your credit good enough to convert it to an unsecured card, at which point the money will be sent back to you.
The money for the deposit is yours, but you won’t be able to directly access it for a while.

So, you may ask – what’s the point of getting a secured credit card? It’s barely a “credit” card, as you have to deposit the amount of the credit limit anyways…

The answer is that secured credit cards help to build credit. Using a credit card responsibly, paying it off on time, etc. will help boost your credit profile over time. And often, for folks with low credit scores, secured credit cards are the only option.

Unsecured Credit Cards for Bad Credit

Unsecured credit cards are the typical credit cards you’re probably familiar with. You apply for one, and if approved, the issuer decides on the amount of credit they want to extend to you. Unsecured credit cards do not require a deposit of any type.

You can then make purchases on the card, and pay it off immediately or over time, based on your needs.

However, they will be harder to get approved for if you have poor credit. They also typically have higher fees, and some even have multiple fees to look out for like annual fees, monthly fees, late fees and more. In general, we don’t recommend unsecured cards for those with poor credit.

Choosing Between Secured and Unsecured Credit Cards

So, which should you choose?

If you want a credit card in order to build credit, and you have at least $200 in savings that you can afford to set aside, then we recommend a secured credit card. These typically have the lowest fees, and are the easiest to get approved for.

If you want a credit card in order to cover expenses that you can’t afford to pay off immediately, an unsecured card may be better. But watch out for the fine print, and be aware of any fees you may be responsible for!

Once you build a good credit history and have a better score, you will qualify for higher quality credit cards. All “normal” credit cards for folks with good credit are unsecured. Once you get out of the low-credit specific cards, there are fewer fees to watch out for.

Best Credit Cards for Bad Credit in 2019

Now that you know the basics of choosing the best low credit credit card, it’s time to look at actual recommendations. Below, find our top picks – divided into secured and unsecured categories.

Best Secured Credit Cards for Bad Credit

If you’re looking for a secured credit card to help you build credit, here are the top options:

Discover it Secured

Annual Fee: $0
APR: 25.24% variable
Minimum Deposit: $200
Rewards: 1% cashback on all purchases; 2% on restaurants and gas stations (on up to $1,000 in purchases per quarter).

The Discover it Secured is easily the best secured credit card for poor credit. Its hits all the important marks: no annual fee, a low minimum deposit, great approval odds, and more. It’s also one of very few rewards credit cards for bad credit – and it actually earns a fairly competitive rewards rate of 1-2%! Even better, all rewards earned in the first year are doubled!

Discover reports card usage on the Discover it Secured to all the credit bureaus, which means this card will help you build credit! Discover also starts reviewing your account after 8 months to determine whether they can refund your security deposit. If you use the card responsibly, Discover will eventually refund the deposit and you can continue to use the card (so essentially, they convert it from secured to unsecured). This is a great way for people who are new to credit to build up their scores and end up with a solid credit profile (and a great credit card) without much effort.

The low minimum deposit is also a welcome change. It’s only a $200 minimum, when most cards require at least $500. When you apply, Discover will approve you for a certain credit limit. You can then decide how much you want to deposit, up to the amount of the limit you were approved for. You will be given a limit up to the amount of the deposit.

Bottom line – for folks looking to build up their credit scores, this is the best credit card for low credit.

Amazon Credit Builder Secured

Annual Fee: $0
APR: 28.24% variable
Minimum Deposit: $100
Rewards: 5% cashback on select Amazon Prime purchases; $40 Amazon gift card signup bonus

The Amazon Credit Builder Credit Card is another good option for a secured credit card. This card is fairly new, having just launched in Summer 2019. It’s issued by Synchrony bank, and backed by Amazon.com.

The Credit Builder card is a secured version of the popular Amazon Store Card. It requires a minimum security deposit of $100, and has no annual fee. The credit limit will be equal to the amount of the security deposit. Eventually, the card can be converted into an unsecured/standard Amazon Store Card. This card does earn rewards, with up to 5% on select Amazon Prime purchases. Read our Amazon Credit Builder review to learn more.

Capital One Secured Mastercard

Annual Fee: $0
APR: 26.99% variable
Minimum Deposit: $49-$200, depending on credit worthiness
Rewards: None

The Capital One Secured Mastercard is also among the best credit cards for bad credit. It has no annual fee, and a low minimum deposit. However, it does not offer any type of rewards.

All applicants who are approved will receive an initial credit limit of $200. To proceed, you’ll need to make the required security deposit, which will be $49, $99 or $200, depending on your credit worthiness. After 5 months of on-time payments, Capital One will consider raising your credit limit, without an additional deposit required.

Capital One reports activity to all the major bureaus, so you’ll start to build credit with this card. It’s not quite as good as the Discover it Secured, as it doesn’t offer any rewards. On the other hand, the Capital One Secured Mastercard has a lower security deposit for some people, although it will depend on your credit score.

Best Unsecured Credit Cards for Bad Credit

Looking for an unsecured card? Find the list of best credit cards for bad credit below.

Note: Generally unsecured cards have higher fees, and may be harder to get approved for, than secured cards. In general we recommend secured credit cards for building credit. Only consider an unsecured credit card for poor credit IF you need an emergency loan, and have no other options.

Capital One Platinum (Average Credit Required)

Annual Fee: $0
APR: 26.96% variable
Minimum Deposit: None, unsecured
Rewards: None

The Capital One Platinum card is a good option if you have average credit. It will be a bit harder to get approved for than some of the other cards on this list, but if you’re on the higher end of the low credit range, this may be a good option.

The card offers no annual fee, no monthly fees, etc. as well as automatic credit line increases as soon as 5 months in. It does not offer rewards, however. There’s also a secured version of this card (discussed above), but this one is unsecured.

Again, keep in mind that not everyone will be approved for this card. But for those with the credit to be approved, it’s a superior option. For other options, check out our guide to the best credit cards for average credit.

Tips for Choosing the Best Low Credit Score Credit Card For You

Now that you’ve seen our list of the best credit cards for bad credit, you’re likely almost ready to make a selection! But before you do, consider these tips:

Consider your goals & needs

Before you get a credit card, consider why you want one. Is it just to build credit? Then go with a no-annual-fee secured card like the Discover it Secured, and pay off your bill on time every month. Or, see if you can, become an authorized user (see below).

Is it to pay for emergency expenses? If so, consider any alternatives you might have. Talk to your bank about a personal loan, or see if you can get a loan from friends or family. Most unsecured credit cards are a poor choice for emergency loans, as they offer small credit lines and very high fees/interest charges.

Consider becoming an authorized user

An authorized user is an individual that is added to another person’s credit card account. They are issued their own card, and can make purchases using it. The upside is that authorized users can benefit from the credit history and score of the account owner.

If your goal is to boost your credit and you don’t really need to actively utilize credit for purchases, becoming an authorized user might make sense. If you have someone in your life (think a spouse, long-term partner, parent, etc.) that trusts you and would be willing to add you as an authorized user, this may help you boost your credit score significantly. However, there are some things to keep in mind – read this article to learn more.

Stick to secured credit cards if you can

We discussed this in more detail above, but the bottom line is this: secured credit cards are far superior to unsecured cards in most situations. Secured cards usually have no annual fee/a very low fee, and offer better perks. If you can afford the security deposit and don’t need to use the card for emergency expenses, secured cards are the way to go.

Watch the fine print

You should know that many credit cards for poor credit are aggressively marketed as good options – but they are really quite terrible options! Some low-credit score credit cards have annual fees on top of monthly fees, inactivity fees, late fees, and fees for just about everything else! Avoid these cards at all costs, and be sure to read the fine print before you apply for any credit card.

Wrapping Up

So there you have it – a selection of the best credit cards for poor credit, along with ample information to help you decide. To conclude, we’d like to remind our readers that using credit cards can be a slippery slope if you get behind on payments. Be sure to practice responsible credit card use, and pay your card balance off on time every month!

If you don’t think you can use credit responsibly, it may be best to just avoid credit cards altogether. There are other alternatives you can explore that may be better options.

If you have any questions, leave a comment below and we will be happy to help!