Choosing among the best subprime credit card companies can help you start building or rebuilding your credit the right way. Bad things happen to good people. There’s no shame in having poor credit or no credit at all. But for people that are looking to roll up their sleeves and start repairing their credit or build it up for the first time, there are some really great options in the subprime credit card market. There are a number of subprime credit card companies that are ready and willing to work with this group of people to help them along the path to good credit. Some features that are common to all subprime credit cards companies include the following:
- Higher interest rates
- Annual fees
- Security deposits
- No rewards programs
- Lower credit limits
Top 5 Subprime Credit Card Companies
Fortunately, there is a lot of competition in this segment of the market, and some subprime credit card companies are offering some great products that will meet the needs of subprime customers brilliantly. Keep in mind that you will need to make payments on time each month to rebuild your credit no matter which card you use. The following are Banks.com’s top five subprime credit card companies, which offer the best deals in this card category.
1. Credit One Bank
Credit One Bank offers its unsecured Visa card to customers with bad credit with no security deposit required. Keep in mind that when you see the word “secured,” it means that a security deposit is required before you are approved for a card. There are not a lot of options available to customers with bad credit that are unsecured, but Credit One Bank does offer one of the better options. Depending upon your level of approval, you will have to pay an annual fee of up to $99. While this annual fee is not at all attractive, their card does have a 1% cash back rewards program, which is also a rarity for subprime credit cards. The card has an interest rate that ranges between 20% and 26%, so make sure you plan to keep your balance paid off monthly. Customers looking for an emergency card or a credit-builder may want to consider the Credit One Bank unsecured Visa card.
2. Milestone Gold Mastercard
Also in the unsecured category is the Milestone Gold Mastercard. Customers that have a bankruptcy on their credit report know that finding a credit card is very difficult. This particular card will not necessarily deny you for having filed for bankruptcy in the past. Your annual fee will depend upon your credit report and may go as high as $99. The interest rate is also high, but still under 25%, keeping it within the average range for subprime credit cards. Again, if you are looking for an unsecured card and are willing to keep your balance paid off, the Milestone Gold Mastercard may be a great option.
3. Capital One Secured Mastercard
Capital One has a secured credit card that is well worth a look if you are interested in a lower deposit. There’s a sliding scale of deposits as low as $49 and going as high as $200. You’ll have a lower line of credit. But with on-time payments each month, you’ll be able to increase your credit line after a few months without having to deposit more money. This card has no annual fee, which is another attractive feature. This card is very helpful for those that have extremely poor credit and don’t want annual fees assessed. The interest rate is very high, at nearly 27%, but it can be a good secured option to help in the rebuilding stages of your credit.
4. Discover It Secured
The Discover It Secured card is one of the better options in secured credit cards. It includes no annual fees and a cashback reward program. You must make your deposit with a bank account rather than a debit card or other means. The security deposit is $200, but it is fully refundable upon acceptance to an unsecured card. The Discover It Secured card has an interest rate of around 25%, which is similar to others in this category. It is a great way to build or rebuild credit and earn cashback on all purchases at the same time.
5. Apple Card
Brand new to the world of credit is the Apple Card. Powered by Mastercard and Goldman Sachs, this card is absolutely shaking up the credit industry. Many subprime-level customers are applying and getting approval for the Apple Card, making it a very attractive option for those looking for cards in the subprime category. With interest rates between 13% and 24%, it falls below the average in the subprime category. One of the best features is that there are no hidden fees, including late fees! What you see is what you get with the Apple Card. They have a generous reward program that provides Daily Cash accumulated on an Apple Cash card associated with your account. Everything is done through Apple Pay, but you can also receive a titanium card for making purchases where Apple Pay is not accepted.