Transferring the existing balances from existing credit cards onto a new credit card is one way people try to work out debt problems. People with bad credit may have trouble finding balance transfer credit cards that will approve them for an account, unless they apply for secured credit cards. With secured credit cards, a security deposit is paid upfront to cover the amount of credit provided. These cards are often used by people to rebuild their credit scores, as paying their balances off on time helps raise their credit score just as it would with an unsecured card.
Capital One Secured MasterCard
Created to help people with bad credit rebuild their credit score, the Capital One Secured MasterCard has a credit line of $200 to $3,000, depending on the amount of security deposit put down. This can range from a minimum of $49, $99, or $200, depending on the applicant's current credit score. There are no processing or application fees and the annual fee is $29. No minimum balance transfer is necessary and there is a 22.9% purchase APR, a 22.9% balance transfer APR, and a 24.9% cash advance APR.
Orchard Bank Classic MasterCard
This secured credit card requires a $200 minimum security deposit regardless of credit history but does not charge a setup fee and waives the first annual fee. After that the annual fee is $35. They require balance transfers to be a minimum of $5 with a 5% fee rate. Their standard APR for purchases is 7.9% to 19.9% while for balance transfers it is 7.9% and cash advances it is 20.9%. However, they may charge default APR on accounts with particularly low credit scores or accounts that have failed to make payments on time. These consist of 29.49% for both purchase and balance transfer APR.
Orchard Bank Visa Card
The Orchard Bank Visa Card is set up very similar to their MasterCard, with no setup fee, as well as minimum security deposit, and APR rates. However, it does differ in one respect. While the annual fee remains $35, for the first year it can be waived completely or charge up to $59, depending on credit history.
OPEN SKY Secured Visa Credit Card
Created for people with bad, poor, or no credit history, the OPEN SKY card charges no upfront or monthly fees and does not require a credit check for approval. The available credit is from $200 to $3,000 depending on the amount of the security deposit, with a minimum deposit required of $200. The annual fee is $50 while the ongoing purchase and balance transfer APR is 9.75%.
The Best Credit Card to Rebuild Credit
There's a handful of credit cards aimed at individuals with poor credit that don't charge high fees and offer large credit limits.