Majority of the US lenders use the FICO(Fair Isaac Corporation) credit score to check your credit. If your score 580 or even a single point lesser, you will be considered to be in the bracket of poor credit. Your credit score plays a crucial role in determining whether you will be eligible for any further loans or credit cards.
It comes as a shocking news to know that a credit score of 580 might not fetch you the perfect loan you are looking for. You might have to compromise on the interest rate and the loan term too. But, the good part here is that there is still some scope of improvement. Even with a credit score of as less as 580, there are lenders who offer credit cards.
Following are some of the credit cards for those with 580 credit score.
- Discover It Secured Card – This card has no annual fee. In fact, it offers cash back on all your purchases. Being a secured card, you are required to deposit $200 towards security deposit. It is a good way to rebuild credit provided you use it responsibly, as the bank reviews your monthly statements for the first eight months, and also reports to three major credit bureaus.
- Capital One Secured MasterCard–This card gives you an initial credit line of $200 only after you make a security deposit of $49. Your creditworthiness is being constantly monitored so that you use the card with lot of care. It does not charge any annual fee, instead gives you a 1% cash back on purchases including groceries, mobile phone, Internet bills and so on.
- Credit One Bank Platinum Visa Card – The recommended score to be eligible for this card is 577 so if your score is 580 you may stand a good chance to be eligible for the same. It is an unsecured credit card so does not require any security deposit. Annual fee can be anywhere between $0 and $99. The regular APR is charged at 16.74% to 24.74%.
- primor® Secured Visa Gold Card – The recommended score here is 571 with credit lines available between $200 and $5,000. It has the lowest possible fixed interest rate of 9.99% but does not offer any reward points or cash back. They do not have any processing fee nor application fee.
- USAA Secured Card® Platinum Visa® – People with credit scores ranging from 525 to 685 can apply for this credit card. It has an annual fee of 35$ with a variable APR of 10.90% to 26.90% depending on your credit history. It does not have any foreign transaction fee, so you should use it responsibly especially while traveling outside the country.
- Open Sky Secured Visa Card – Majority of secured credit cards make it mandatory to have a checking account with the bank, but with Open Sky secured visa card you are free to apply for a card without having an account with them. They have a variable APR of 18.39% and an annual fee of $35.
- Indigo Platinum MasterCard– You can get pre-qualified for this card without having any impact on your credit score. The annual fee is $0 for the first year and $59 to $75 thereafter. Previous bankruptcies do not affect your eligibility. It targets those with bad credit only to give them a chance to improve their credit score.
There might be several other banks that do lend credit cards for those subprime credit. However, you have got a lot of work to do. Although it is not the end, but it is a good practice to clear off your debts as early as possible.
All the banks review secured credit cards regularly,which means you are responsible for your interest rates too. Making monthly payments and cutting down on unnecessary expenses are the fundamentals of good credit management.