It’s best to follow the steps below when choosing the best unsecured credit card for you.
1. Know Your Credit Score
The cards on this list are for people with bad credit. Knowing your credit score will give you a better understanding of the cards you might qualify for. Many cards for those with bad credit won’t affect your credit score for pre-qualification, so it’s worth a try. To find out your credit score, go directly to the major credit bureaus—Equifax, Experian or TransUnion. View your score as a rough estimate since your creditor may use a different model.
2. Think About Your Spending Habits and Credit Options
Are you getting a credit card to rebuild credit or because you have a large purchase coming up? Will you be paying off the card right away or carrying a balance? These factors are really important in deciding which unsecured credit card to get. Things like APR and credit limits also matter, as do things like annual fees.
3. Weigh the Advantages and Disadvantages
Once you understand all of your options, it’s time to think about which card is the right fit. For those with poor credit, your option may be limited. You may want to look for a card with a low annual cost. You may also want to ask your bank or credit union about your credit card options through them.
4. Understand the Fine Print
Once you’ve decided on a card, read all the terms and conditions. More specifically, understand any and all fees, including the annual fee, late fees, foreign transaction fees and introductory or sign-up fees. Know the APR—and if there’s any introductory APR. Figure out if any preapproval processes will affect your credit score and how future credit limit increases work. Once you feel confident you know exactly what the card entails, it’s time to apply.