Whether you choose to apply for a secured or unsecured credit card, applying for this type of credit is one of the best ways to help your credit scores improve. Lenders like seeing a credit mix, and a good payment history with a credit card could boost your chances of approval for your next auto loan. The most difficult part is choosing a card. Which one will work best for you?
Best Credit Cards to Build and Rebuild Credit
While every credit card is different, there are some that are better suited for consumers with poor or no credit. Just be aware that when you open a new card with poor credit, your interest rate will be higher than average, and you’ll still be responsible for any additional fees.
First Access VISA Credit Card
If you have poor credit, First Access could be a great card for you to consider. This is an unsecured credit card offer, where a deposit isn't required to open it but your credit score can influence your eligibility and credit limit. Unsecured cards can be harder to get approved for, but the First Access offer from VISA is designed for people with thin or less than perfect credit.
Total VISA Unsecured Credit Card
Another option for a credit card is Total VISA’s unsecured credit card. You’ll also need a checking account to apply and will be required to pay some fees. Because this is an unsecured credit card, the chances of being approved with poor or no credit are lower compared to a secured credit card.
NetSpend VISA Prepaid Card
NetSpend won’t report your payment history to the three major credit bureaus, so it won’t bolster your credit score. What it can do is help build good spending habits as a safer alternative to carrying cash. There’s no activation fee or minimum balance due when you apply, and the bank won’t run a credit check for approval. What makes a prepaid card different from a credit card is that instead of borrowing money from the bank, you’re using your money as your credit balance. One of the best features NetSpend offers is Payback Rewards. This is optional, but if you choose to enroll in the program, you’ll earn cash back for many purchases you buy daily. You’ll also get personalized offers based on your shopping habits to choose from.
Credit cards are a great way to establish credit and improve your overall credit history. With all of the credit card options available, it can be difficult to choose which one will work best for you. Let us here at Auto Credit Express help find the right card for you.
On the flip side, if you need to finance a car but worry your credit will be in the way, we still want to help. Auto Credit Express works with a nationwide network of dealers who have the lending resources available to help credit-challenged car buyers get the financing they need. Get started today by filling out our no-obligation auto loan request form.