Roundup: Credit Cards for Rebuilding Credit

Once your credit score slips into the poor or bad credit category – below 650 – consider getting a credit card that’s designed to help you rebuild your credit. Sometimes, this means you’ll have to get a secured card. With these cards, you deposit an amount of money in a bank account and this “secures” the card.

Let’s face it. You might qualify for a credit card, but you could get stuck with a 24 percent (V) APR (or much higher). Sometimes, it’s best to spend some time focusing on fixing your credit. Once your score climbs, your options – and APRs – will only get better.

All of the cards below report to all three major credit bureaus. So here’s the plan: If you use one of these cards, pay off your balance in full every month. And pay it on time. No exceptions!

Orchard Bank Visa Cards

The issuer is HSBC and there are four card types: Platinum, Gold, Standard, and Secured. The approval process is a little different. You apply for an Orchard Bank Visa Card, and then you’re told whether you qualify for a secured or an unsecured card.

If you’re offered a secured card, don’t get upset. Here’s your chance to work on your credit score. You’ll get a 7.90 (V) APR on purchases. There’s a $35 annual fee, but it’s waived the first year. You can also check out Orchard Bank Classic MasterCards®, which offers a secured card with a similar APR and fee structure.

At publishing time, Orchard Bank Visa Cards & Orchard Bank Classic MasterCards® are offered on Credit.com product pages and Credit.com may be compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.

OPEN SKY Secured Visa® Credit Card

The issuer is Public Savings Bank. There’s a $50 annual fee, but that’s your only upfront cost. This card doesn’t have a monthly maintenance fee or a processing fee, like many secured cards do. You’ll get a 9.75 (V) APR on purchases. Credit limits are from $200 to $3,000.

At publishing time, OPEN SKY Secured Visa® Credit Card is offered on Credit.com product pages and Credit.com may be compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in ANY preferential editorial treatment.

Citi® Secured MasterCard®

What I like about this card is that your secured deposit isn’t just collecting dust in a savings account. With this card, your deposit is invested in CDs. Sure, the interest isn’t huge, but I think it’s nice to earn a little something on your money. There’s a $29 annual fee, but no monthly maintenance fees. On purchases, there’s an 18.24 percent (V) APR. That’s a little high, so this isn’t the right card for you if you need to revolve a balance.

Tagged as: credit building, credit card reviews, credit cards

Beverly Blair Harzog Credit.com's Credit Card Expert, Beverly focuses on credit card issues and provides insight about current news that affects the credit card industry and consumers. She's a nationally recognized expert on credit card issues and is also the co-author of The Complete Idiot's Guide to Person-to-Person Lending. Reach Beverly at beverly@credit.com.