A credit score is a numerical expression of one’s creditworthiness. In most cases, the scores range from 300-850. A 300-579 score is considered poor. Other credit companies consider 300-600 as weak also. In our case, a 580 credit score is poor, and a person having such scores can find it challenging to get loans and credit cards in some banks. However, it is possible to get credit cards for 580 credit score form some financial institutions.
Bad credit scores are a drawback to someone’s financial success. If you succeed to get a credit card or a loan, the issuer normally gives it with high-interest rates, and it becomes challenging to repay the debts more so if you took a large amount of loan. There is an option of getting a secured credit card whereby you have to deposit a certain amount of money as security to the credit limit you want to apply for.
In a real sense, you can get two types of credit cards with 5000 limit with bad credit. These include secured and unsecured credit cards. Secured credit cards require you to deposit a particular amount of money as security to the limit you get. Individuals with lousy credit or no credit at all can apply for secured credit cards in an attempt to raise their scores. Unsecured credit cards do not require you to deposit any amount of money as security.
What leads to a bad credit score?
Various factors contribute to bad credit scoring. Knowing them is very important so that you can avoid them. Most people apply for credit cards without understanding the basic terms and condition only to find themselves in terrible financial situations. The following are factors that can lead to bad credit scoring.
i) Late payment of debts
It does not matter what kind of debt you pay late. Late payments of credit card debts, loans, internet bills, water bills, and so on lead to bad credit scores. Defaulting never to pay is even worse and can lead to a pathetic relationship with your banks.
ii) Idle credit cards
If you apply for a credit card and succeed in getting it, you should ensure that it remains active all through. If you have several credit cards, do not store others, and use only one. Ensure that you alternate each of one them even if it means to spend very little. Idle credit cards lower your scores.
iii) Hard inquiries
When banks and other financial institutions inquire about your credit history from the credit bureaus, we call that a hard inquiry. A soft inquiry is whereby an employer inquires about your credit history before employing you and does not affect your credit scores.
iv) Exhausting your credit limits
A credit limit is a maximum amount you can spend on your credit card. A credit limit of $500 means that you cannot spend more than $500 per month. If you spend a lot of credit per month, it means that you are a bit irresponsible with money and this lowers your credit scores. It is wise that you spend just 30% or below your credit limit.
Where can I get my credit scores?
Three main bureaus in the United States give credit scores as well as credit reports. They include Experian, Equifax, and TransUnion. You can get free credit reports from these companies once per year. Each company is independent of each other, although they use the same criteria. All depend on the FICO score guide to come up with a detailed report about your credit history.
However, they do not give free credit scores. You have to pay some money to get credit scores. Only the credit report is free. You should note that a credit report does not have credit scores.
Some companies give free credit scores. You can have your credit score for free from companies such as Credit Sesame and Credit Karma. The scores are just the same as those from Equifax, Experian, and TransUnion.
Who can apply for a bad credit card?
Anybody with a bad credit history can apply for the cards. Even businesses can apply for credit cards for bad credit. Although sometimes small business credit cards for bad credit are hard to get, one can acquire one as long as he or she has the necessary documentation. A business credit card can help you to purchase stock for your business if you do not have money and pay later at the end of the month.
People with bad credit can also apply for bad credit cards. Some can accept any score, while others can accept a certain credit score. A company may have bad credit cards but not for people with credit scores of below 500.
Also, people with no credit history can apply for secured credit cards to gain credit scores. Such people include students and people who are beginning to work. Only people with some sort of credit history can succeed in getting an unsecured credit card. The credit cards for bad credit with no deposit have low credit limits as compared to credit cards with deposit. The reason behind this is the high-risk financial institutions have to take on the unsecured credit card.
How can you get a credit card for a 580 credit score?
For you to get a credit card, you need to be eighteen months old. It means that you must have an identity card and a Social Security Number. You should have some credit history as well. Numerous credit card companies offer credit cards for bad credit scores such as 580. If you have a credit higher than 580, let’s say 600 and above, you can quickly get credit cards for fair credit with high limits and lower interest rates as compared to lower scorers.
Once you have all your documentation with you, you can visit a website of your favorite bank and see the credit cards that favor your scores. You must open a checking account with the concerned bank after pre-qualifying for a credit card. Every credit card requires a checking account. Upon acquiring your checking account, you then proceed to apply for your card. You have to provide your address where you will receive your credit card as well as an email and a mobile phone for communication.
Later on, I will take you through some credit cards for bad credits which may be secured or unsecured. You can now see that you can get an unsecured credit card for 500 credit score. Talk to your bank representative to see how you can get one.
Which credit cards can you get with a 580 credit score?
There are various credit cards you can get today in various banks. With a good credit score, you can even get free virtual credit cards with no deposit such as the Capital One Credit Card. Virtual cards are more secure since they are not visible and so you only need to remember the card details such as PIN, card number and the security code. Some of the common credit cards for a credit score of 580 include the following.
1) Capital One® QuicksilverOne® Cash Rewards Credit Card
The card has a 0% introductory APR for the first 15 months of account opening. After that, your APR rate will change. You will have an APR of 15.49%, 21.49%, or 25.49%, depending on your creditworthiness.
The card has 0% fraud possibilities so that you can use the card without any worry. If there are unauthorized charges, you will not be liable. Also, the card allows you to receive 24/7 customer service. You can also set up an auto-pay for your card for automatic payments every month. Apply here.
2) Gold Mastercard®
The card has no security deposit. You can check whether you pre-qualify to get the card without affecting your credit scores. Also, the card has high fraud protection to ensure that you are not prone to online cons. If any unlawful transaction happens with your card, you are not liable to pay.
Also, you will have an easy time to improve your credit scores since the company reports your payment history every month to all the credit bureaus. Customer service is also excellent. Apply here.
3) Capital One® Platinum Credit Card
The card has no annual fee. However, it has a 26.99% variable APR. In addition, the card has high protection from fraud. With this card, you have unlimited access to your credit score from CreditWise.
Operate your account online using a mobile app from Capital one. Also, the company will review your credit periodically to see whether to raise your credit limit or not.
4) Credit One Bank® Visa® Credit Card
After getting this card, you will benefit from 1% cashback on all eligible purchases. You are likely to have a higher credit limit with time since the bank monitors your transactions for a credit increase. The card accepts credit scores of between 500-599.
Pre-qualification for the card does not affect your credit score. People with poor credit scores may not qualify for the card. Apply here.
5) Indigo® Platinum Mastercard®
Prequalify without affecting your credit scores. It takes about 60 seconds to prequalify for the credit card. Also, you can choose your card design upon getting the card. Interestingly, you have the freedom to access the card’s account 24/7.
Above all, the card is free from fraud, and you can be sure that you are safe. You are not liable for any fraudulent transactions with the card. Apply here.
Credit cards for bad credit are useful since they help one to increase their credit scores. There are various cards in the market which can be secured or unsecured. The only challenge with unsecured credit cards is the high-interest rate. Secured credit cards have low-interest rates but require you to deposit some money as security. Bad credit cards are ideal for improving your credit scores to qualify for loans and higher credit limits.