Credit Cards for Poor Credit or No Credit
By using your credit card each month and paying the balance in full as soon as the statement arrives, you’ll slowly build a reputation for on-time payments, which will raise your credit scores.
You should also be careful never to exceed 30% of your allowable credit limit during any one statement period. And, in the interest of your own finances, you should not allow yourself to carry a balance. The interest rate on poor credit credit cards is high.
The Applied Bank® Secured Visa® Gold Credit Card offers the best terms, with a $50 annual fee and only 9.99% interest, while New Millennium Bank offers a card with a $59 fee and 19.5% interest.
A third choice would be the Total Visa card with a $48 fee and 19.92% interest.
Thus, the only purpose in obtaining such a card should be to build or re-build your credit.
As you continue to make on-time payments in full, and assuming that you have no other ongoing credit issues, your credit scores will gradually build until you become eligible for a card with no annual fee and a smaller interest rate.
If you have some cash on hand, another choice is the secured credit card. These also require an annual fee and high interest, but they also will help to build your credit.
Pre-paid cards, on the other hand, will do nothing to help your credit scores.
