If you have a low credit score, you will find it challenging to qualify for the popular credit cards. A credit score of below a FICO score of 599 is considered low. Most top balance transfer credit cards are marketed to individuals with great credit history, which is the reason why you could be getting rejections whenever you apply for a balance card. You should not let the rejections put you down. Instead, you should look for balance transfer credit cards for bad credit.
The bad credit balance transfer cards are special cards that offer basic features to help people with bad or no credit build their history. Most of these cards also offer a way to better balance credit cards. They regularly monitor your account for an automatic upgrade after only a few months.
Despite most balance cards targeting consumers with a high credit rating, there are a few options in the market for people with a low credit score. Although the chances are low, you may find that you still qualify for balance transfer credit no fee card and hence, the need to review most credit cards available in the market. A good credit card should help you rebuild your credit while giving you rewards. It should also not have excessive fees and an extreme APR rate.
Top 5 Best Balance Transfer Credit Cards for Bad Credit
1. Discover It Secured Card
The Discover It secured is a popular credit card for individuals looking for a bad credit balance transfer credit card with attractive cashback rewards. The card has a reward program that gives you cashback of 2 percent on all restaurant and gas station purchases whenever you use the card. The card will further reward you one-percent on all other purchases. The secured card comes with other excellent packages like an end of the year bonus reward and a dollar-for-dollar match on all the cash back you have received after using it for one year. You can redeem the rewards through participating vendors or even make purchases on Discover’s portal.
- $0 annual
- Max credit limit of $2500
- 99 percent introductory rate
- Free social security number alerts
- Reviewed after eight months for an upgrade to an unsecured card
- It has exceptional rewards
- It does not have annual fees
- It does not have a foreign transaction fee
- It does not have penalty APR
- It requires a deposit
- It has a low maximum credit limit
2. Indigo Platinum Mastercard
This card is a gift to individuals with low credit ratings. It gives individuals with low ratings a chance to use a credit card irrespective of their bad credit history. The card pre-qualification is quick and easy. The card is best for individuals who have a recent bankruptcy. The card is for those individuals looking to rebuild their credit history. It does not come with reward packages that encourage you to spend more. If you have been struggling to get a balance credit card, you should try the Indigo Platinum, and you may get a $0 annual fee.
- Bankruptcy applications accepted
- Quick response time
- Reports to all three major credit bureaus
- Pre-qualification available
- It has a swift, straightforward application process
- You can use the pre-qualification application to know your chances of getting approved
- It does not require a security deposit
- It does not have a reward program
- It does not have an introductory APR
3. Milestone Gold Mastercard
It is not easy to find a credit card with a modest interest rate that accepts individuals with low credit. The Milestone credit card has a quick pre-qualification process that does not dent your low credit rating further. A credit card is an attractive option for individuals struggling with bad credit and those who want to build their credit history from scratch. You may also consider it if you have filed for bankruptcy or if you are simply looking to rebuild credit after a difficult financial period. The card encourages reasonable and responsible spending.
- Easy pre-qualification process
- Free custom card design
- 1-percent foreign transaction fee
- $35 to $99 annual fee
- 90-percent fixed APR
- It has price protection
- It offers custom card designs
- Full online access
- High-interest charges
- High annual fees
4. Capital One Secured Mastercard
With the low credit rating, the best way you can enjoy some of the features available in top balance credit cards are paying a deposit. The Capital One Secured Mastercard offers you a chance to rebuild your credit by making a minimum deposit of just $49, $99, or $200. It is an attractive option for people with low credit as it does not charge an annual fee. It is rare to find balance transfer credit cards without an annual fee or foreign transaction fees. Furthermore, the provider promises to increase your credit line without requiring additional deposit if you manage to make your first five monthly payments on time.
- $49 minimum deposit
- 0$ annual fee
- 0$ foreign transaction fee
- 99 percent variable APR
- It has a low deposit requirement
- Increases credit line after five months without an additional deposit
- It does not charge an annual or foreign transaction fee
- It has a low credit limit
- It has costly interest charges
5. Credit One Bank Unsecured Visa Card
It is not easy to find an unsecured credit card that accepts individuals with bad credit. The Credit One Unsecured card not only allows individuals with modest credit histories, but it also offers 1-percent cash rewards on eligible purchases. With this card, you will not have to wait for long to know whether you qualify for the card. It has a pre-qualify feature that gives you a response in less than 60 seconds. The downside of this card is the fact that you will have to pay high fees to enjoy the benefits offered by the card. The credit card attracts a fee of up to $35 for returned payments and a fee of up to $37 for late payments. The card is unique in that it lets you change your payment date to your ideal time as long as it is within six days. The purpose of this credit card is to help you rebuild your credit history. It offers helpful credit-building tools that you can use to monitor your credit score for free.
- 49 to 25.49 percent variable APR
- $37 fee on late payment
- $35 fee on returned payment
- $300 introductory minimum credit limit
- It does not require a specified minimum credit score
- It offers helpful credit-building tools
- It supports a custom design
- It has a reward program
- It is costly with a high annual fee and a penalty for late payment
Essential Features You Should Consider When Choosing the Best Credit Card for Bad Credit
If you have a low credit rating, the factors that you should consider when applying for a credit card are different from those of individuals with good credit scores who can qualify for instant approval balance transfer credit cards. The emphasis when you have a good score is usually the size of the credit limit, travel perks, and reward points, among other features. Balance transfer credit cards for bad credit focus in helping individuals rebuild their credit, and hence, they usually have the essential features. The most important features you should consider when you have bad credit include:
1. Annual Percentage Rate
The high-interest rates cannot be avoided when you have bad credit, but you should ensure that the card you are applying for does not have an exorbitant percentage. Some credit cards charge as high as 30 percent APR while others charge a variable APR of less than 20 percent. You should go for the lowest possible APR.
2. Secured vs. unsecured
People with bad credit have to decide on whether they should go for a secured or unsecured credit card. Credit cards that are secure require a specific deposit before you can start using the card. The secured cards offer more excellent value to customers in terms of benefits. Some of the best-secured cards for bad credit let individuals enjoy some of the perks available to the top credit cards. Unsecured cards do not require a deposit, but the credit line is usually low. They may also come with excessive penalties.
3. Additional Benefits
Although their goal is to help you rebuild your credit, some of the credit cards offer attractive packages like cash back rewards and purchase protection. Credit cards with additional features are beneficial if you would like to use the card for your everyday purchases. However, they can encourage you to spend more, which is counterproductive if your goal is to repay your debt.
4. Annual Fee
Although some credit cards do not charge a yearly fee, you should look out for cards with high annual fees. The high annual rate can significantly reduce your credit limit as it will be deducted from your credit line.
The purpose of balance transfer credit cards for bad credit is to help you rebuild your credit. It is advisable that you should not think about using them for as long as they are usually expensive. They also do not come with exceptional rewards. Nevertheless, you can get a valuable credit card that will help you improve your credit rating while enjoying excellent rewards if you know how to get approved for balance transfer credit cards. Credit cards in this guide are friendly to individuals with moderate credit rating. They have affordable APR and reasonable credit limits.