Consumer Reports’ annual list of the best and worst credit cards is a must-read for anyone with poor credit. It highlights the high interest rates and fees, confusing rewards programs, and bad customer service associated with the top issuers. While these cards are not ideal for anyone with excellent financial standing, they are still an option for those with less-than-perfect credit. The best secured cards are available for individuals in need of a new credit card to rebuild their history.
Secured vs. Unsecured Cards
There are two main types of credit cards: unsecured and secured.
Unsecured credit cards have no deposit and pose more risk to the issuer, so the best ones are available to those who have good credit. Unsecured credit cards are harder to qualify for and they often charge high fees and interest. For this reason, NerdWallet recommends getting a secured card to build or repair credit.
Secured cards are not for everyone. Generally, they require at least a $200 security deposit. How favorable the terms and benefits are depends on your personal situation and credit score. You can use a secured card anywhere an unsecured credit card is accepted. While you will be charged interest if you carry a balance, you can build up your credit history by making timely payments. If you’re new to using credit cards, it may be better to start with a secured card. You can improve your credit score by using this card responsibly and building a positive payment history. When you get a secured card, you’ll need to maintain the same level of responsibility as you would for an unsecured one. You can also upgrade from a secured card to an unsecured card. For these reasons, the best and worst credit cards are the ones that offer the best terms and conditions for your particular situation.
Among the top-rated credit cards, the Navy Federal Credit Union and USAA Federal Savings scored 95 and 86 respectively, but there are other high-ranked credit unions. The top-rated issuers were primarily those that had high interest rates. The best credit cards for those with low credit score were those that are offered by large-scale retailers. While there is a wide range of different companies, the two major players in the market are a few common themes.
The best and worst credit cards for people with poor credit are those that are free of annual fees and have low introductory interest rates. While many consumers may prefer the CorTrust Bank Visa Business Credit Card, it has been listed in our Worst Credit Cards for 8 consecutive years. The CorTrust Bank Visa Business Credit Card has no introductory interest rate, but it has an annual fee of $99 and no rewards. However, this card is free from other features, and is not worth the $0 annual fee.
The best and worst credit cards are based on the interest rates and terms and conditions of the cards. The best credit cards charge interest rates that are higher than 30%. The best credit cards charge a low annual fee of only $15. If you want to spend more than $100 a year, you’ll need a better plan. These cards also require a monthly maintenance fee of $10 or more. While they may seem like the worse choices, they are still worth considering if you have less-than-perfect financial standing.The best credit cards for people with bad credit are those that don’t charge an annual fee. Those that don’t have excellent finances will be happy with the CorTrust Bank Visa Business Credit Card. This card is not free but does come with a $9 annual fee. The first year, however, is free for people with excellent credit. You’ll have to pay the $59 annual maintenance fee to avoid the hefty interest rate and the extra fees.