Credit Cards For Bad Credit Scores Under 599

Got a credit score of 599 or below?

Then you have a reason to be worried! This is bad credit as it is below the average. It is considered a poor score by most banks, which also means that you will have a hard time securing a reliable credit card.

While it can be challenging, we are not saying that it is impossible. As long as you are determined and you know where to look, you can easily find a credit card for bad credit. In most cases, you will need to make a minimum security deposit to qualify. Also, the credit card limit will be smaller compared to the cards for people with good credit ratings.

If you are looking for the best credit cards for credit score under 599, keep on reading and learn from the insights we’ll share in this short guide.

Best Credit Cards if Your Credit Score is Under 599

Here are some of the top bad credit score credit cards that are worth looking at.

Discover it® Secured

Annual Fee: 0

APR: 22.99% (Variable)

Balance Transfer Fee: 3%

Cash Advance Fee: $10 or 5% of the amount

Build or rebuild your credit score – that is what you can expect when you use this credit card. This deposit card comes with a refundable deposit, which will determine your credit line approval. Every swipe will earn a cashback. You will be eligible for 2% cashback in gas stations and restaurants, subject to the issuer’s terms and conditions. On all other purchases, you will automatically qualify for a 1% cashback. We also love how they won’t raise your APR for making a late payment and you don’t have to incur a penalty in your first late payment. Despite this, however, the rewards are not as enticing as those credit cards for people with good credit rating.

Capital One® Secured MasterCard®

Annual Fee: 0

APR: 26.99% (Variable)

Balance Transfer Fee: 0

Cash Advance Fee: $10 or 4% of the amount

The initial credit line that you will get with this credit card for bad credit score is $200. The more you deposit, the higher your credit line will be. Meanwhile, the required security deposit for this card is $49, $99, or $200. One of the things that we love in this card is how you can make personalized payments. You can choose your preferred payment due date and payment method. There is also an option to lock your card using the bank’s mobile app. You can also have a virtual card number for your online transactions, which will help secure your physical card.

OpenSky® Secured Visa® Credit Card

Annual Fee: $35

APR: 18.89%

Balance Transfer Fee: n/a

Cash Advance Fee: $6 or 5%

Applying for this credit-building card takes only four steps and can be completed in less than five minutes! It is a great choice because there is no credit check needed for approval. You just need to make a minimum security deposit of $200.You can set your preferred credit limit from $200 to $3000. With its regular use, it can help you achieve a better credit score since they report to three major credit card bureaus. However, one thing that we did not like with this card is how they charge a $35 annual fee against some cards that do not charge any amount.

Indigo® Mastercard®

Annual Fee: $75

APR: 24.9%

Balance Transfer Fee: n/a

Cash Advance Fee: 0 in the first year

If you are trying to establish a better credit score, this is another card that will work for your needs. It also reports to three major credit card bureaus, so using this card will help you rebuild your financial standing. You can be pre-qualified for this card, which minimizes the hassle of application, although, this is not an assurance of getting approved. There are a couple of problems with this card. You need to pay a high annual fee. To add, there is also a high charge for late payments. You might not also like how this credit card lacks attractive rewards.

Merrick Bank Double Your Line™ Visa® Credit Card

Annual Fee: $75

APR: 27.7% (Variable)

Balance Transfer Fee: n/a

Cash Advance Fee: n/a

One of the things that we like in this credit card is how it does not require a security deposit. With this card, your credit line will initially range from $500 to $1,250, and this can be $1,000 to $2,500 after qualifying. For the first seven months of opening your account, by making at least the minimum payment that is required, you can instantly double your credit limit. For your peace of mind, this card also offers fraud coverage in case your card is stolen. However, one of the bad things about this card is the high annual fee.

Milestone® Gold Mastercard®

Annual Fee: $35

APR: 24.9%

Balance Transfer Fee: n/a

Cash Advance Fee: 0 in the first year

A card designed for those with less than perfect credit – this is what you can expect. There is quick pre-qualification without an impact on your credit score. It is also a good thing that you don’t need to make any security deposit, which makes it great for people who are living paycheck to paycheck. The fixed APR is also a good thing. Nonetheless, the high annual fee is frowned upon by many. Also, you might be unhappy with how you cannot make the most out of your purchases because this card does not come with a rewards program.

Credit One Bank® Visa® Credit Card

Annual Fee: $95

APR: 25.49 (Variable)

Balance Transfer Fee: n/a

Cash Advance Fee: $5 or 8% of the amount

One of the compelling reasons to apply for this bad credit score credit card is that there is no minimum security deposit that is required. Also, it is unique compared to most of the cards on our list because you can participate in a cashback program for all eligible purchases made using this card. However, the $95 annual fee is one of the biggest drawbacks of this product. It is automatically deducted from your initial credit limit.

Fingerhut Credit Account

Annual Fee: 0

APR: 29.99%

Balance Transfer Fee: n/a

Cash Advance Fee: n/a

Wrapping up our list is a credit card from a popular retailer. You can use the card in the company’s store and authorized partners, unlike those mentioned above that you can use almost anywhere. There is no annual fee, which is already a compelling reason to sign-up for a membership. It also sends reports to major credit card bureaus, especially when payments are settled on time. This can help to rebuild your credit history. However, it is not as feature-packed as other credit cards. You cannot even get a cash advance with this credit card.

What are the Alternatives for People with Credit Score Under 599?

If you believe that a credit card does not suit your needs, other cards might work for you, including those that we will be briefly talking about below.

Store Cards

Also called retail cards, these are credit cards that are issued by retail merchants, such as Old Navy, Walmart, Amazon, and Target, among others. It is tied to special discounts and rewards programs depending on the brand of the card that you will choose.

The best thing about getting a store credit card is that you will be eligible for tons of bonuses, including a sign-up bonus and regular discounts. Most stores will offer huge markdowns to entice new members to apply. There are other perks that you can enjoy, such as birthday discounts and rebates.

However, while store cards will work like credit cards, take note that you can use it only on the store of the issuing merchant. Credit approval is also needed and it does not offer buyer protection. The interest rates can also be high, although, this will differ from one card to another.

Prepaid Cards

This works pretty much like a debit card, but the main difference is that it does not need to be tied to a bank account. You will buy your prepaid card of choice, and whatever amount you paid for the card will also represent how much value is stored in it. You will swipe it like a credit or debit card in qualifying stores. Once the value runs out, you can have it topped up.

One of the good things about prepaid cards is that you will have complete control of how much you will be spending based on the amount. This is unlike credit cards. This is also a great way to transact with merchants who do not accept cash, especially if you are buying from an online store.

Nonetheless, there are also drawbacks associated with the use of prepaid cards. For instance, it is not a credit reference. So, if your goal is to eventually improve your bad credit score, prepaid cards won’t be of any help. There is also a fee for purchasing and topping up the card.

Debit Cards

If you have a credit score under 599 and getting a credit card is a tough feat for you, a good alternative is to apply for a debit card instead. They work much like credit cards, but the main difference is that there is a stored amount good as cash except that you are paying using a card.

Like in the case of prepaid cards, the good thing about debit cards is that you will have better control over your spending. You will spend only the money that you have since the prepaid card will be declined by the merchant once it runs out of value.

One of the disadvantages of a debit card, however, is that it does not help in building your credit score. Also, the amount you can spend is limited depending on the current value of your account.

FAQs

Allow us to answer a few questions most of you may have before we end this brief guide.

How to apply for a credit card for bad credit?

The first and most important thing that you need to do is to research the cards and banks that are best for people like you. This will save you a lot of time and spare yourself from frustration. You should also find ways to gradually improve your credit score to qualify for better credit cards.

What is FICO score and how do I determine it?

FICO score is a credit card scoring system that is often used to determine an individual’s creditworthiness. It is used by lenders to determine approval, as well as interest rates. The higher your FICO score is, the better is your credit rating. Payment history, the amount owed, length of credit history, credit mix, and new credit are the factors used in determining your FICO score.

How to increase your credit limit with bad credit?

To increase your credit limit with bad credit, one thing that you can do is to apply for multiple credit cards. You can also increase your credit spending and ask your bank to increase your limit. It will also help to settle your payments in time to increase the chances that you will have an increased credit limit. You can also increase your security deposit.

What to do if your credit card application is denied?

Do not be devastated. This commonly happens to people who have a bad credit score. You can reapply for another credit card in another bank. You can also consider alternatives, such as store and prepaid cards. The best thing that you can do, however, is to find ways to improve your credit score so that your next credit card application will have a more favorable outcome.

Final Verdict

At this point, we hope that you were enlightened on which credit cards are best for bad credit score. Consider our recommended credit cards above. They are from some of the most reputable banks in the country, but there is a high chance of being approved even if your credit score is below 599.

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