When you don’t have any credit, getting a credit card can be challenging. This is especially true if you want to avoid putting down a deposit. Generally, secured credit cards are easier to snag when your credit history isn’t stellar or is non-existent. But many newly married couples can’t afford to put that money down, leaving them feeling stuck. Luckily, there are credit cards for bad credit with no deposit. Here are some options to consider.
Total Visa Card
When you need to build or rebuild your credit, the Total Visa Card could be a reasonable option. It’s an actual Visa card, not a store card, so you can use it anywhere Visa is accepted. If your application is approved, you’ll receive an initial credit limit of $300.
However, like many subprime cards, the Total Visa Card is fee heavy. Of that initial $300 limit, you’ll technically only be able to use $225 at first, as the $75 first-year annual fee is charged to the card automatically. That fee does drop after the first year, but it’s still pretty high. You’ll pay $6.25 a month ($48 a year) to maintain the account.
Plus, that doesn’t include the $89 one-time program fee. That you have to pay upfront to formally open the account, and that can be a pretty significant bite out of your checking account.
The interest rate is fairly high as well, coming in at 34.99 percent. However, the card does report to all three credit bureaus. With a bit of time, you may be able to build up enough positive credit history to qualify for something better elsewhere.
The Surge Mastercard qualifies as a starter card, allowing you to build up a credit history and potentially qualify for something better in the future. The interest rate on the card is comparable to others in the category, coming in around 25.99 to 29.99 percent.
Plus, there’s an annual fee of $75 to $120, depending on whether it’s your first year. However, if your credit limit hits the $750 mark, those fees are waived.
It is an authentic Mastercard, so you can use it anywhere Mastercard is accepted. Additionally, reporting to all three credit bureaus is the standard, allowing your score to benefit from on-time payments, low usage, and a more robust credit history.
Store Credit Cards
If your primary goal is to build a strong credit history, allowing you to qualify for better cards in the future, then you may want to go the store card route. While you can only use these at specific retailers, the barrier to entry tends to be pretty low, and you won’t have to pay a deposit.
Plus, while they may have a higher than average interest rate and low credit limits, they typically aren’t as fee-laden. Annual fees aren’t usually part of the equation. Additionally, you may qualify for discounts or rewards, depending on the store.
If you want to boost your credit history, consider trying a store card at a place you shop regularly. Then, when you head in to buy your usual items, use the credit card. As soon as the transaction posts, pay off the balance in full. By going that, you can avoid interest and potentially earn rewards, all while bolstering your credit.
Just keep in mind that store cards can still get you into trouble. You may overextend yourself, get stuck paying a lot in interest, or otherwise harming your financial life. If you aren’t sure you can use one responsibly, it’s best to avoid a card entirely or, at least, don’t get one at a store where you’re tempted to splurge.
Do you have any other tips that can help couples get credit cards for bad credit without a deposit? Share your thoughts in the comments below.
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