Credit cards for people with bad credit are not hard to come by, and I can highly recommend two - one unsecured and one secured.

Tribute MasterCard - This is an unsecured MasterCard that accepts almost anyone. It doesn’t offer any rewards, discounts, or rebates, but it does report every month to the big three credit unions. So, if you pay your bill on time and don’t max out your card every month you’ll be able to build up a relatively decent credit score.

Pros

• Reports every month to the “big three” credit unions
• Offers a credit limit increase after six months of good standing
• Unsecured

Cons

• Low initial credit limit ($300)
• High APR (as of this writing, mine is at 22%)
• High annual fees ($170 annually, plus monthly fees)
• Credit limit increases are not offered very often beyond the initial limit increase

Orchard Bank MasterCard - This is a secured MasterCard, which means you must make a security deposit. As of this writing the minimum security deposit is $200. It does not offer any rewards, gifts, or rebates, but it also reports every month to the big credit unions. Since it’s also a secured card, you’ll be able to increase your credit limit by making a deposit in your security account.

Pros

• Reports every month to the “big three” credit unions
• Credit limit can be increased by making a deposit in your savings account
• If you fail to make payments, your security deposit will be used

Cons

• High initial investment (minimum $200 deposit)
• High APR (mine was $19.2%)
• High annual fees

Those are the two credit cards for people with bad credit that I’d recommend. What do you use?

Tags: bad credit cards, bad credit credit cards