2017’s Best Credit Cards For Bad Credit

Sometimes, we choose poorly. Life doesn’t always go as planned and every once in a while, we find ourselves in difficult circumstances. Sometimes it is because we didn't understand the consequences of the product or service. Sometimes we knew better, and did something irresponsible anyway and sometimes the stress of a difficult situation can simply cause us to exhibit poor judgment. It happens to everyone and at some point in our lives, we’ve all made bad choices about our careers, our personal lives and our finances. 

Unfortunately, making poor choices with your credit can create a really big hole that can be very difficult to dig out of. The good news is that if you have made some bad choices with your credit in the past, such as missing payments or defaulting on your balance, all is not lost.

Even with bad credit decisions in your history, you may still be able to get credit. But before you begin researching and evaluating the options for individuals with less than perfect credit, you need to be sure that you are in a financially stable place. That means that you have a steady stream of income from a job or business income and that you have worked out a reasonable budget so that you know exactly how much you can afford to charge on your account every month. Because you are trying to repair your credit and get your financial life back on track, you should really be paying off the card balance every month. If you are carrying a balance and only paying the minimum, you are risking finding yourself in an even deeper credit hole.

Also, if those poor credit decisions are recent and you’re not in a financially stable place, credit counseling would probably be a better option to explore than looking into credit card options.

Once you have the stability of a job or income and a budget, you’re ready to research credit card choices and options. The most important dimension to consider is if the credit card is secured or if it is unsecured.

With a secured card, you are required to make a deposit up front and then you can use the card for credit with a credit limit typically set at a level up to that amount you put down as a deposit.

You get the convenience of a credit card and it’s low risk for the bank or credit card company since they’ve taken a deposit from you.

With an unsecured card, you typically pay much higher fees and interest rates. Every family situation is unique, but unsecured cards with high fees are typically so costly that they just aren’t worth it and you’re better off with a secured card. For that reason, I do not typically recommend high fee unsecured cards for individuals and families trying to repair their credit.

So, let’s look at some specific options for secured cards: