August 01, 2024

Red Alert! These Bad Credit Credit Cards Could Sink You Even Further

If you have a bad credit history and are desperately looking for a card to improve your score, be very careful! Not all options are created equal, and some could even worsen your financial situation. In this blog, we reveal the 3 worst credit cards for bad credit that you should avoid at all costs.

1. Platinum Elite MasterCard Secured by First Progress:

At first glance, this First Progress card might seem attractive with its low $200 deposit. However, it hides traps that will make you bite the dust:

• Sky-high interest: With a 24.24% annual interest rate, you will pay a fortune in interest if you cannot pay off the full balance each month.
• Very low limit: A credit limit of only $210 restricts your purchases too much and makes it difficult to use the card responsibly to improve your score.

2. OpenSky Secured Card:

While the minimum deposit of $200 is similar to the previous one, this OpenSky card hits you with a $35 annual fee, an additional charge that takes money away from you each year, regardless of whether you use the card or not. In addition, the 20% interest is still high. The credit limit of $240 is not much better either.

3. Capital One Platinum:

Capital One, known for its attractive offers, also has a dark horse in its deck: the Platinum. Although the minimum deposit is $210 and the credit limit reaches $250, this card charges you an annual fee of $40 and an exorbitant interest of 25%. You will be getting into debt faster than you imagine!

In summary:

Avoid these three cards like the plague if you have bad credit. Instead, look for options with:

• Lower interest: Look for cards with an APR (annual percentage rate) of less than 20%.
• No annual fees: Don't be fooled by low deposit offers; make sure there are no hidden annual fees.
• Decent credit limits: A higher credit limit gives you more flexibility to manage your expenses and improve your score.
• Benefits that benefit you: Some cards offer cash rewards or credit counseling programs that can help you get out of debt.

Remember, rebuilding your credit takes time and patience. Don't despair and look for responsible alternatives that will help you move in the right direction. Your financial health will thank you!