A credit card brings a huge convenience as you do not need to worry about paying for stuff when you do not have cash. You can use the given credit limit and pay it back all at once or in installments. Almost every bank offers a credit card to its customers at reasonable terms. They will not charge huge fees and interest on each payment if you have a good credit score. But what about the best credit cards for those with a bad credit score?
Many services offer credit cards with multiple features like cashback, purchase points, lower interest installations, and more. As a card’s benefits increase, so do its fees and the interest rates. It is where people get confused about which credit card they should get. We will share the best credit cards you can get at the most reasonable terms.
Another reason people choose credit cards is to pay off a certain debt. Most online buy now, pay later services accept credit cards. Those who purchase from such services must pay the installments on time. You can opt for a credit card that offers smaller installments than the one you need to pay. That way, the lender will pay the larger installments on your behalf, and you can pay them back in smaller amounts.
On the other hand, the type of credit card you can get also impacts the overall rates. A secured credit card is best for those with a bad credit score. You can pay some money as a deposit to get a secured card. If you pay the installments on time, the lender can upgrade your card to an unsecured one and return the deposit.
Some credit cards come with the option to chase ultimate rewards. You keep using their credit card, and they will add points for each transaction you make. Once you have enough points, you can redeem them to get free stuff or a discount from many merchants.
Top Picks For Best Credit Cards In 2022
We managed to find five of the best credit cards which can cover all eligible purchases that will not charge you a fortune. We took an extra step to mention each card alongside its most unique trait, making it easy for the readers to choose a card.
- Indigo Mastercard – Overall Best Credit Card, Editor’s Pick
- Milestone Gold Card – Top Choice for Zero Liability Protection
- Destiny Mastercard – Perfect for Unsecured Credit Cards
- First Access Visa Card – Accepted Nationwide & Online
- FIT Mastercard – Most Fit For Better Credit Limit
#1. Indigo Mastercard – Overall Best Credit Card, Editor’s Pick
Indigo Mastercard is provided by the Celtic Bank and has been facilitating customers since 2001. You will not need to provide much information to qualify for this card. There is a small form that only takes two minutes to fill. You can check the APR they charge on every credit score on their website before applying for it. For example, if your credit limit is $300, you will get $225 as the company will deduct $75 as the annual fee. Indigo Mastercard charges only a 1% foreign transaction fee on the transaction you make. If you want to take a cash advance, the card will charge you a minimum of $5. There is no need to wait for specific months from account opening before taking a credit card. You can open a new account and immediately ask for a credit card, and the company will provide you with one. The rest of the terms are the same on each card, but not paying the yearly fee is a huge convenience.
High Approval Rate: Celtic Bank wants to facilitate the customers as much as possible You will not have to provide your credit score or bank information in the initial form. They will use your Social Security number to check your details. Once you are qualified for the pre-approval, they will ask for other information to determine which card they can offer you.
Zero Interest on Purchases: As long as you pay the bill before the due date, the company will not charge you any interest on purchases. Your due date is 25 days after each billing cycle so ensure to pay it on time to avoid paying interest.
Pay All at Once. You can save lots of interest and establish payment history.
- Fast and easy application process
- Establish payment history
- Standard credit limit without security deposit
- Soft credit pull
- Feature of the balance transfer card available
- A low maximum credit limit
#2. Milestone Gold Card– Top Choice for Zero Liability Protection
The Milestone Gold Card is under the Bank of Missouri, one of the most significant banks in the USA. It is one of the oldest banks in the USA, offering its premium services since 1891. If you want a credit card that will not charge hidden fees and help you use your credit limit in the best way, this card is the best option. You can start by filling out a simple form to pre-qualify. The process is online, but they will also send you some papers regarding your contract. The best part of applying here is that if you cannot qualify for this credit card, the bank will show you options from other banks, so you will not go home empty-handed. Sometimes, the bank may pre-qualify you for different bank cards, so you will not have to fill out the form again. A pretty convenient option if you are impatient and do not want to fill out forms multiple times. You can adjust these fees in installments after talking to the bank.
Bonus Rewards: The only thing missing is a dedicated app to control credit card savings.
Top-Notch Security: The company offers fraud protection services if your card is stolen or lost. However, you will need to report the card quickly so the company can block it.
$0 Fraud Liability: This is the best feature of this Mastercard. If anyone steals your card or you lose it. Make sure that no one has your phone; otherwise, they can use your card and phone to make purchases.
After that, the card will charge you a fixed percentage or an amount that will not exceed more than $100. The cash advances also have a limit which you cannot increase. The company will charge you a fine if they find out that you asked for an emergency limit increase to get a bigger cash advance.
Fraud Protection: Fraud protection provided by Mastercard Zero Liability protection. If approved, you will receive the Mastercard guide to benefit that details the complete terms with your card.
MV Chip Enabled: Credit cards are accepted POS (point of sale) like petrol pumps or convenience stores. If you lose your card and someone happens to be at that place, they can use your card to purchase something if there is no EMV (Europay, Mastercard, and Visa) chip.
- Purchases and balance transfers are available
- Reports to all three credit bureaus
- Use wherever Mastercard is accepted in the US
- No security deposit
- Zero liability guarantee
- No low intro APR
#3. Destiny Mastercard– Perfect for Unsecured Credit Cards
Usually, companies provide a secured credit card to people with bad credit scores. Borrowers have to offer something as a deposit to get a credit card. It makes sense as people with bad credit do not have a good reputation, and banks do not trust them much. Destiny Mastercard is an unsecured credit card for which you do not have to pay any deposit or security.
The company charges an annual fee on all the credit card variants to let people use this card without any security deposit. The annual fee is $59 to $75 for the first year and $99 for the rest of the years. However, like other companies, they will deduct it from your credit limit.
Filling out the form for pre-qualifying will not affect your credit score. However, if you do not qualify, the company will reject you instead of offering you something more suitable. You can choose from other options we shared if you cannot get a Destiny Mastercard.
You must upgrade your card to grab something more useful while making purchases. On the other hand, this card is accepted almost everywhere, which is a plus point. Most online sellers accept this card if you want to purchase something in installments.
The First Electronic Bank gives this Destiny Mastercard, and they deliver your credit reports to all three major credit bureaus. So, if you keep paying your installments on time, this unsecured credit card can help establish payment history.
$0 Fraud Liability: This is the best feature of this Mastercard. If anyone steals your card or you lose it, you have 24 hours to report it. In the meantime, the company will not take it from you if someone makes a transaction from your card. Moreover, any unauthorized payments from your credit card are also exempted from your credit limit. To avoid this, the company will allow you to enable the OTP (One-Time Passcode) feature. Make sure that no one has your phone; otherwise, they can use your card and phone to make purchases.
Free Cash Advance: You can take cash advances equal to your credit limit without paying any fee for the first year. Their terms and conditions mention that you are not liable to pay any price for cash advances for the first 12 months. After that, the card will charge you a fixed percentage or an amount that will not exceed more than $100. The cash advances also have a limit which you cannot increase. The company will charge you a fine if they find out that you asked for an emergency limit increase to get a bigger cash advance.
EMV Chip Enabled: Credit cards are accepted POS (point of sale) like petrol pumps or convenience stores. If you lose your card and someone happens to be at that place, they can use your card to purchase something if there is no EMV (Europay, Mastercard, and Visa) chip.
Fraud Protection: Fraud protection provided by Mastercard Zero Liability protection. If approved, you will receive the Mastercard guide to benefit that details the complete terms with your card.
The company includes the EMV chip, so if anyone makes a payment, they must enter the pin to approve it.
24/7 Online Services: You can contact the credit card lender at any time of the week, and they will have someone ready to help you with your queries.
- Can be used for hotels and rental cars
- Pre-enabled for qualifying balance transfers
- Worry-free fraud protection
- Enjoy easy online account access
- No cash rewards
#4. First Access Visa Card– Accepted Nationwide & Online
First Access Visa Card is another card offered by The Bank of Missouri. However, this card is suitable for those with bad credit scores who do not want to risk lowering it even further. This card is available for everyone, even if someone has a zero credit score. The chances of getting this credit card are 100%, but it also has many costs that you can avoid opting for other credit cards.
You will need a checking account to get this card because the bank will not risk waiting for you to delay your payments. To help you increase your credit score and to ensure that you pay on time, the credit card lender will ask for your bank account. You have to allow them to cut payments from your account automatically.
They will automatically stop taking payments as you start paying installments on time. Moreover, making timely payments with this card can drastically increase your credit score. One of many reasons to own this card is to improve your credit score quickly.
This card has no traveling perks, but you can purchase travel tickets using this credit card. Instead of increasing the annual fee like other card providers, they reduce it. In the first year, you will have to pay $75, which will reduce to $48. There is also a $95 sign-on fee that the company will charge you once your application is approved.
Some of these fees are refundable if you can take your credit score above 600 using this card. Then you can ask the bank to reimburse the fee they took because you had a bad credit score. Even if they do not refund the fee, they will compensate with exclusive promotions and offers. It all depends on how well your performance is after getting this card.
Welcome Offer: While this card charges multiple fees, there is one significant advantage of owning this card. You do not have to pay monthly or cash advance fees for the first 12 months. It gives you an edge to improve your credit score within a year and upgrade to a better card.
They take the sign-up fee because they will not charge you the monthly fee. So, the company covers itself and facilitates you by not charging anything in the coming months, giving you the freedom to use this card without much tension.
No Purchase APR: You can make online purchases as much as possible as this card will not cut any APR on purchases. You can even end your credit limit with online purchases, and the card will not cut anything.
There are no details regarding the foreign transactions, so be sure to ask the bank before making a foreign purchase. They might take a lot of charges on foreign transactions since they are not disclosing it, but you can confirm it with the company or bank.
Custom Print on Card: If you do not like the card’s default shape, you can ask for a custom print or choose prints already available while filling out the form. However, you will have to pay $9.95 for the print. The good news is that they will add it to your card bill, and you can pay it in installments. While they offer custom prints, they will not print if the design you provided is complicated or requires lots of colors.
Free Credit Increase: After using this card for a year, regardless of your poor or good performance, you can ask for an increase in your credit limit. Another way is to pay the dues on time; the bank will automatically increase your limits.
- Low annual fee
- Supplementary cards allowed
- Wide card acceptance across the US
- Easy and secure online application
- High regular APR (34.99%)
#5. FIT Mastercard– Best Fit For Better Credit Limit
The most noticeable thing about FIT Mastercard is the credit limit. While all the other credit cards come with a $300 limit, this credit card provides $400. However, you will have to fill out a complicated form since there is no pre-qualification. The company will give you a card or not based on the form you will fill out.
FIT Mastercard has an A rating from BBB (Better Business Bureau), meaning this credit card is the most trustworthy among the customers. The highest ratings offered by the BBB are A+, and that happens when a company passes all its standards. Having an A rating means this company has never been caught in fraud and has been satisfying customers since it was made.
This Mastercard is acceptable everywhere inside and outside the USA, increasing your buying power. However, their foreign transaction fee is a bit higher than other cards. Since the company provides additional services to their card holders, they tend to charge extra.
You can pay an additional $0.99 and get extra credit protection. However, if your outstanding balance is more than $100, you might have to pay more fees. The best part is that there are no minimum charges, unlike other cards where they charge you at least $1. You can also grab an additional card, but the company will charge you more.
The good news about these charges is that they will be deducted from your credit limit. So, there are chances you might not get the best credit limit in your first month. The company will cut so many fees that you might get half of your credit limit. Since this happens only once, the rest of your months can get better.
Double Credit Limit in Six Months: This is the best feature of FIT Mastercard; the bank will double your limit within six months. You do not even have to ask them; the initial limit of $400 will reach $800 after six months. After a year, if you maintain a good performance, the company will double it again, reaching $1600. The maximum credit limit on FIT Mastercard is $2,000, which is way above any other card can offer. The fee structure remains the same, which should have gone down as you use this card more.
Free Access to Vantage 3.0 Score: The Vantage score is the same as your FICO score. You will get free access to check your credit score after signing up for an e-statement. Since it is free, you can check your e-statement to see how much your credit score has improved. Once you pass the 500 scores, you can upgrade your credit card with better perks and fewer charges. There is a limit on how many times you can check the e-statement; you can check it every 12-hours daily.
Excellent Customer Reviews: On TrustPilot, this card has more than 2,300 reviews and over 5-star ratings. However, most of these ratings are related to how the company treated the employees to solve their complications. Since people know they can take this card with a bad credit score, they will not complain about the charges. On the other hand, people were happy that most of the charges were over after the first month, and they will have a year to improve their credit score. They can avoid such costs by upgrading their card with an improved credit score.
Low Eligibility Requirements: Despite having a lengthy online form, this card is available for people with low income and credit scores.
- Best for every type of credit score
- Starting credit limit of $400
- Credit limit extension after six months
- Free credit score access from Experian
- Checking account required
- A hefty amount of fees
- High standard APRs on purchases and cash advances
How We Made This List
High-interest rates are not the only thing you should consider while getting a credit card. There are many other factors that play a more significant role, and it depends on how you want to use your card. Most people use credit cards for online transactions and would like to avoid paying additional fees on installments.
Other factors include statement credit, fewer foreign transfer fees, and lower deposits if you have a bad credit score. Statement credit is a minimum amount that a lender credits to your account, and this amount will not reflect on your minimum payment when the creditor decides to deduct it.
Some credit cards have a 0 intro APR feature, which helps the new card owner purchase without fees for up to 15 months. You will only make payments on the principal amount with no interest. It is a convenient option if you do not have lots of money to pay the high-interest rates.
So while choosing the best credit cards for you, we kept all these factors as a standard, and those that cleared these standards made it to our list.
What We Looked For
With so many credit cards available in the market, it is hard to choose one. So, we will help you choose the best credit cards to suit your needs without worrying about higher interest rates.
Here are some of the features we considered when coming up with our list of the best credit cards:
- Lower APR: The APR is collected monthly and added to your credit card bill. The APR will depend on your outstanding balance. Some companies charge higher APR as they want to earn a lot for providing you with a credit card. In contrast, other companies keep it as low as possible. We found the companies that offer the lower APR rate compared to other companies in the market. Furthermore, as you pay the installments on time, these companies lower the rate further for your convenience.
- No Additional Fees: You might need to pay a fixed processing fee or a fixed percentage while purchasing something in installments. However, some brands will not charge this fee if you buy something from a merchant they support. We added such companies to our list, which offer zero processing fees on the most famous merchant. We also choose brands that take less of a balance transfer fee if you want to upgrade your secured credit card.
- Low Foreign Transaction Fee: If you use your credit card for foreign transactions, you must pay foreign transaction fees. So, we chose companies that charge a lower foreign transaction fee on websites that ship products to the USA. A foreign transaction fee on your card is applied by a credit card company that is against imports. Further, they charge huge foreign transaction fees to discourage people from purchasing stuff abroad. A credit card from American Express usually has lower foreign transaction fees but has other issues.
- Suitable for Bad Credit Score: We chose credit cards that are easy to get even if you have a bad credit score. You might not get the unsecured card with lower credit scores, but if you make the installments on time, the lender can provide you with an unsecured credit card.
Factors to Consider When Choosing a Credit Card
Credit cards are convenient, but with such convenience comes a high cost. However, there are some ways you can remove such inconvenience. You can check some factors before choosing a credit card to get the best card without paying high-interest rates and charges.
Here are a couple of factors you should consider before deciding on a credit card:
You must get such credit cards that are readily accepted worldwide. Moreover, these credit cards should not get their rates decided by the bank while converting dollars to another currency for online purchases. Some banks charge a different amount than the open market, which can significantly increase the overall product’s price.
You can ask the bank about this or check the card details to see how many additional charges they take for international payments. Usually, they will mention it as foreign transaction charges, which will be a small percentage.
- Upgrading Chances
As you improve your credit score, you will require upgrading your credit card to use it for more significant purchases. Moreover, you can also look for cards that allow increasing the credit limit after a specific time.
For example, FIT Mastercard allows a 100% increase in credit limit after six months and continues until your credit limit reaches $2,000. It would help to consider this factor when choosing a credit card.
While many think that rewards are not that important, you will need bonuses and rewards to grab discounts and offers if you make purchases from your card. You can check the credit card details to see how you can earn bonuses or reward points.
Some credit cards offer rewards on purchases while others provide it on paying the dues on time. Moreover, you should also check how you can use these rewards, as some cards can help you get discounts while others can provide you a cashback.
- Expedited Payment Fee
Some credit card companies charge fees if you want to get money on your credit card faster than usual. People often do this to avoid the late fee, but if caught, you will have to pay a specific percentage to the bank. Ensure that the credit card you choose will not charge you if you opt for expedited payments.
- Fixed Introductory Rates
While finding such a credit card is hard, it can bring a huge convenience. You will know that you are paying a fixed fee every year instead of a different one, altering your credit limit and thus ruining your plans.
It happens because the company offers lower interest rates in the first year and charges hefty rates in the next year. Read the credit card details properly before opting for one and learn about its introductory rates before deciding.
FAQs About Credit Cards
- What is the best credit card for cashback?
Apart from the ones we provided in the list, you can opt for Wells Fargo Active cash card. The Wells Fargo Active Cash card offers up to 2% cashback on every visa purchase. However, getting a Fargo credit card will require a good credit score. If you have a bad credit score, our choice of cards is the best.
- What is the best credit card for bonus points?
The cards we listed above are unsuitable for earning bonus points as they all play a role in improving the credit score. If you want to earn many bonus points on your purchases, the Chase Sapphire Preferred Credit Card is the best option.
On chase Sapphire Preferred Card, you can get 60,000 bonus points on every $4,000 purchase. You can also choose the Blue Cash Preferred Card from American express. However, these all require you to have a credit score above 600.
- Which credit card is best for traveling?
The Capital One Venture X Rewards Credit Card comes with a dozen travel perks. You can easily earn and redeem rewards on this Venture Rewards Credit Card and use them as you travel to different countries or cities.
- How can I improve my score using credit cards?
The best way to improve your credit score is to pay the installments and dues on time. You must have set a payback period with the lender, and you should pay the minimum dues before that time.
Another way is to allow your bank to pay your credit card dues automatically. That way, you will not forget about it, enhancing your credit score.
- How can I use my credit card?
If your credit card is general-purpose, you can use it for many reasons. You can make everyday purchases, pay your monthly cellular telephone bill, take things in installments from multiple merchants, and more. You can also use a credit card to build your credit score, which can help you get a bigger loan from many lenders.
Conclusion : Are These The Best Credit Cards For You?
Having a credit card can save you a lot of trouble when you forget to bring cash with you or other cards you have stopped working. However, not everyone can qualify for a credit card, and the reason could be anything. You have a bad credit score or low income. So we shared the best credit cards you can get without complications.
You can apply for them online, and the chances of qualifying for such cards are 100%. However, choose a card that suits your needs the most. Also, check if you can quickly pay the installments and the fees of a credit card before applying.