We’ve rounded up a list of the best subprime credit cards of March 2020 for you. Subprime credit cards are the best way for those with poor or bad credit establish a path to improving their credit scores. While these cards typically have more restrictions, higher interest rates, and higher fees. This does not diminish their value however but knowing which are the best subprime credit cards before you start working towards a more stable financial future can be a bonus.
Subprime Credit Cards March 2020
There are two types of subprime cards which may be considered, secured cards where the consumer deposits funds into a saving account in order to open the account, and unsecured cares where no deposits are required. Here’s a look at some of the best subprime credit cards in each category.
Secured Subprime Credit Card Options
The first type of subprime credit cards are those where the consumer is required to open a savings account.
Green Dot Visa® Secured Credit Card
Green Dot Bank offers this card at an annual interest rate of 19.99 percent. Like other secured cards, you will not earn interest on the collateral account associated with this credit card. Minimum deposits of $200 will be required to open an account and an annual fee of $39 will be applied to your account. Green Dot also does not release your security deposit until such time as you close your credit account assuming you do not have any balance due.
Applied Bank® Secured Visa® Gold Preferred® Credit Card
This secured card offers potential cardholders the option to make a deposit of between $200 and $1000. Interest rates may be as low 9.99 percent fixed APR, and you will pay no application or processing fees. In some cases, applicants may be approved for a credit limit up to $5,000. It is also worth noting this account begins assessing interest on purchases immediately upon the purchase being complete. The annual fee for this account is $48.
First Progress Platinum Elite Mastercard® Secured Credit Card
When you are searching for ways to build your credit score fast, First Progress offered by Synovus Bank is an option. When an applicant is accepted to this program, a deposit is made, and you will instantly be granted credit up to the amount of your deposit less the annual fee. Applicants may be granted a credit line of up to $2,000 and applicants can expect to pay an interest rate of Prime Rate plus margin of 15.24 percent. The annual fee assessed to this card is $29 and is deducted from your initial credit line.
Unsecured Subprime Credit Cards
When you are hesitant to tie up a portion of your personal savings without a “set” date to retrieve them should you need them, an unsecured subprime credit card may be a better option. These three subprime credit cards are among the best available for those who have less than perfect credit scores.
Milestone® Unsecured Mastercard®
Milestone offers three varying programs through which consumers can expect to pay between a $35 and $75 annual fee. Interest rates for these cards are 24.9 percent. Credit card applicants will be notified which tier of card they qualify for which will determine the annual fee. In some cases, applicants may be required to pay an upfront fee prior to acceptance. This fee can range between $50 and $100 depending upon your credit profile.
Indigo® Platinum Mastercard®
Celtic Bank offers this card to those with less than perfect credit. This subprime card offers a range of programs with annual fees varying between $0 and $75 depending on your individual credit profile. Preapproval options do exist for this subprime credit card and even if you are approved, you are under no obligation to accept the card once you have access to the terms. The interest rate on Indigo cards is 24.9 percent which is a usual rate for most subprime credit cards which are not secured.
Total VISA® Unsecured Credit Card
This card does have an $89.00 Program Fee which must be paid before you can access your credit line. Consumers can expect to pay an interest rate of 34.99 percent on purchases. The first year’s annual fee of $75 is assessed immediately upon your card being issued and will reduce your available credit. After the first year, the annual fee drops to $48. Total Visa also charges a monthly fee equivalent to $6.25 per month ($75 per year) which is waived during the first year you have the card.
Subprime Credit Cards March 2020: Conclusion
Subprime credit cards may be the only option available to a consumer who has struggled with credit issues in the past. When deciding which card is right for you, it is important to carefully review all terms and conditions. Since all subprime cards report to the three major credit bureaus on a monthly basis, making timely payments is a necessity. For most consumers, once you have rebuilt your credit score, closing your subprime cards may be worth considering. While your credit score may take a temporary hit because you are closing a “seasoned” account, you will be able to get back any security deposit you may have made or avoid other fees associated with subprime credit cards.