100% Free Credit Cards For People With Bad Credit?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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newpolitics
 
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100% Free Credit Cards For People With Bad Credit?

Postby newpolitics » Mon May 13, 2013 8:06 pm

I cant believe how much banks try to ripoff people who have poor credit scores. I am in the mid 500s and when I go online and look I see-

  • First Premier Bank card: 95 processing fees, 75 annual fee, 36% interest
  • Centennial Discover: 75 fee for first year, 144 for second year. 30% interest
  • Credit One Bank: At first I thought this was Capital One because the logo looks similar but this is a knockoff. $75 annual fee, 23.9% interest
I feel these costs are too high, especially because I have been told to start with 2 or 3 card accounts to rebuild. If I got all 3 of those that is hundreds of dollars in fees. Aren't there any free credit cards for bad credit out there?

FYI dont want to join a credit union, looking for a card I can get without moving banks

Thanks


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bisbicos
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Postby bisbicos » Mon May 13, 2013 8:49 pm

I would recommend only signing up for one credit card right now. Wait till your score goes up a bit before applying for multiple cards.
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
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CCG
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Postby CCG » Mon May 13, 2013 10:39 pm

Are you only looking for unsecured? Or will you consider secured too?

When it comes to unsecured unfortunately you're not going to find a free credit card. The ones you listed are typical of the handful you will find with bad credit history; all of them have high fees, very low credit limits, and many of them come from banks the average person has never heard of before.

Like you, I completely agree they are overpriced and that is why CreditCardForum absolutely refuses to advertise them, regardless of how much they will offer to pay us. There's just no point in people paying that much money when there are other lower cost ways to rebuild credit history.

There are low cost options for secured. They may not be totally free of fees, but you can easily find one with an annual fee of around $30 or less.

Some accept security deposits as low as $200 and since that deposit is fully refundable (as long as you don't have any outstanding balances when you close the account) it means you will be paying very little for the credit card itself.

They're much better options than paying through the roof for something like a First Premier card which might technically be unsecured, but with its low limit and high fees, you almost have to pony up as much money upfront as a secured card.

If you haven't already check out the sponsored section on here:
Compare these top low cost secured and partially secured cards

rockyrock
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Postby rockyrock » Tue May 14, 2013 6:39 am

I rebuilt my credit with a Cap One secured Visa. I deposited $200 and they granted me a $400 limit, $29 AF and an APR ~20%. After 10 years they returned my deposit--with interest. I still have the card (in my desk drawer) to maintain my AAOA even though it has a high APR and $29 AF.

I read an article last year indicating they had only 6% of the CC market but 20% of the complaints filed with the CFPB.

I'm sure there are other options, this is just what worked for me.

Good luck!
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

DavidNY
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Postby DavidNY » Tue May 14, 2013 9:17 pm

Try a Bank of America Secured Visa

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Z06Biker
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Postby Z06Biker » Tue May 14, 2013 9:56 pm

rockyrock wrote:I rebuilt my credit with a Cap One secured Visa. I deposited $200 and they granted me a $400 limit, $29 AF and an APR ~20%. After 10 years they returned my deposit--with interest. I still have the card (in my desk drawer) to maintain my AAOA even though it has a high APR and $29 AF...


And now you have an Amex Platinum and Chase Sapphire Preferred. You are a shining example of how hard work, patience and work ethic pays off...literally!
AMEX: PRG Gold, Business Simply Cash, Business Costco, BCE.
Chase: United MileagePlus Club, Sapphire Preferred, Amazon Rewards
Barclaycard Arrival World Mastercard
HSBC Cash or Fly World Mastercard
USAA World Mastercard, USAA Platinum Mastercard
Wells Fargo Business Platinum
USC Credit Union Mastercard

nvtech
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Postby nvtech » Tue May 14, 2013 11:46 pm

To start in a better way..try to have a relationship with a bank like BOA ..or any of the big banks.
US Bank might sound better comparing all the other banks issued checking accounts as they offer 2 free ATM withdrawals.

And the 2nd step...go for the banks own secured credit card. US Bank Secured visa is very good in my experience.

ironman
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Postby ironman » Tue May 21, 2013 6:48 pm

Hey I came across this post and had a followup question to what the OP was asking. If secured cards are just as good for bad credit then why aren't there more people who get them. On your credit report do they show as secured or unsecured because I disagree they are equivalent if they are labeled secured on your report. If that is how they work then paying First Premier or some other ripoff card hundreds might be worth paying for actually if you have a really bad credit score like I do.

MemberSince99
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Postby MemberSince99 » Tue May 21, 2013 7:49 pm

They are just as good, no one cares if it's secured or unsecured. They are just a credit card they do not show as anything else (there is no indication I've ever seen on a report showing a card is secured).

First Premiere however is known as a bottom tier lender so it's looked down on by the prime lenders in any case, though they realize you have to start somewhere.

I'd recommend a secured card over the bottom feeders IF you can do that. Or try a credit union. Or as an AU on someone's card. If those are not options, I guess hold your nose and deal with these people until you can get Cap One and them DUMP them.

pewpew
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Postby pewpew » Thu May 23, 2013 2:41 am

ironman wrote:Hey I came across this post and had a followup question to what the OP was asking. If secured cards are just as good for bad credit then why aren't there more people who get them.


some people just don't know any better. they get a letter in the mail advertising a card with some ridiculous rates, like 35% APR and a $100+ AF and they apply for it without doing any research or weighing options. i personally know several people like that. i don't know if it is laziness, apathy or stupidity that drives people to do this.
Junk I use:
AmEx Platinum for Mercedes Benz from, 75k spending ability
AmEx Everyday 8.99% + Prime, 44k CL
Chase Ink Bold, 35k
Chase Freedom (Converted from WaMu VISA) from '07, 5.99% + Prime, 30k CL

Junk I don't use
BoA Susan G. Komen Cash Rewards (converted from World Points MC) from '07, 7.9% Fixed APR, 30k CL
Discover IT (Converted from Discover More) from '08, 5.74% + Prime, 20k CL
AmEx Clear from '07, 4.99% + Prime, 10k CL
All 3 credit scores are over 800.



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