8 Best Credit Cards for Bad Credit of September 2024 – Forbes Advisor – Technologist

You can improve your odds of being approved for a card with bad credit by:

• Knowing your credit score and verifying the accuracy of your credit history in advance
• Choosing cards that are attainable
• Checking for preapproval or pre-qualification tools, if offered by the card issuer
• Having cash available as a security deposit if you’re applying for a secured card
• Waiting to apply until your finances are under control
• Submitting accurate, up-to-date information on your application

How To Pre-Qualify for Credit Cards With Bad Credit

Checking if you are pre-approved for a credit card requires only a few easy steps.

1. Check the issuer’s website. Information on an issuer’s website, like the credit level required for approval, can help you determine if you’re eligible for the card you’re interested in.
2. Visit the issuer’s pre-approval page. To see if you prequalify, you’ll be asked to enter a few details about yourself. You’ll usually need to provide your name, address and the last four digits of your Social Security number so the issuer can run what’s known as a soft check of your credit. This type of credit check, unlike a hard pull of your credit, won’t have any impact on your score.
3. The issuer will tell you if you are pre-approved for the card. Running a soft check doesn’t mean you’re officially approved for the card. You still need to apply, and you may be denied. But it does give you a sense of whether you are a close match for a card.

Overall, there’s no downside to having an issuer prequalify your application. In fact, you may end up finding out you have a shot at a card you didn’t think your current credit score merited. Prequalifying is not a guarantee of approval.

An important note: Be sure you have complete trust in any website or service asking for sensitive information for prequalification (or to determine any other type of eligibility). Be wary of initiating this process through links provided by online or email advertisements and through unsolicited phone calls, as the entity on the other end may not actually represent who they claim to. You can always decline and follow up yourself through the credit card issuer’s official channels. Claims that “this is your only opportunity” to act on an offer should raise red flags.

How To Use a Credit Card To Build Credit

When using a credit card to build credit, there’s no silver bullet or magic recipe to increase your score, but there are concrete actions you can take to get on the right track.

• Do your very best to pay your bills on time. Your payment history makes up 35% of your FICO® Score.
• Automate payments. If you simply find it challenging to remember due dates, you can use autopay to eliminate the risk of missed bills.
• Keep your credit utilization ratio low. This measurement compares your credit card balances—what you spend each month—to the maximum amounts your credit limits allow. A ratio of less than 30% is generally considered good, but below 10% is even better.
• Avoid applying for too many lines of credit. A hard credit check can drop your score by one to five points and, if approved, lower your average account age, which also can drop your credit score.

Should You Get a Credit Card for Bad Credit?

If you have a low credit score and are looking to rebuild your credit, applying for one of the cards on this list could be a good stepping stone toward improving your credit history. But remember: Not all credit cards for those without good credit are created equal. These cards can have significantly different fees, reward structures or security deposit requirements. Choosing the right card will depend on a combination of your personal financial history and your financial goals.

Forbes Advisor Credit Cards Writers Cole Schenewerk and Barbara King contributed to this article.

The Secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
¹To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
²On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
³Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.