There are all kinds of credit cards for bad credit available to consumers today, but they’re not all created equal. Some cards have higher than average interest rates and many charge annual fees on top of application fees. Here are all the factors we considered when coming up with our list of top cards for bad credit this year:
The most important factor we considered for cards in this category was monthly credit reporting. To make a credit card for bad credit work in your favor, all your monthly payments and balance details need to be reported to the three credit bureaus each month. When this happens, you have the best chance at improving your score over time when used responsibly.
While rewards may not be the most important factor you look for in a credit card for bad credit, we still gave precedence to cards in this category that offer cash back. After all, earning 1% or more back on all your purchases can help you rack up rewards in a hurry. Plus, cash back can help make up for annual fees and any security deposits you had to put down. Keep in mind, however, that rewards are only useful if you pay your credit card bill in full each month and never carry a balance.