Let's face it, not all of us have a perfect credit score. In fact, many millennials struggle with bad credit due to student loans, high credit card balances, or even just an unfortunate stroke of bad luck. But don't worry! Having bad credit doesn't automatically mean you can't take advantage of credit card rewards and benefits that are out there waiting for you. In this Flik Eco blog post, we're going to uncover the best retail credit cards for those with bad credit, so you can start rebuilding your credit score while enjoying the perks that credit cards have to offer.
Best Retail Credit Cards For Bad Credit Table of Contents
Why Retail Credit Cards Can Be a Great Option
Retail credit cards are a fantastic option for those with bad credit for several reasons:
- They often have more lenient credit requirements, making it easier to get approved.
- They typically offer rewards, like discounts or cashback, which can help you save money on your purchases.
- If used responsibly and paid off in full each month, they can help you improve your credit score over time.
Some Precautions to Take
Keep in mind, retail credit cards can come with some downsides, so it's important to be aware of these and make smart decisions to avoid hurting your credit score further:
- Higher interest rates: Retail credit cards usually charge higher interest rates than traditional cards. Be sure to pay off your balance in full each month to avoid paying these charges.
- Lower limits: These cards also tend to have lower credit limits, so don't go on a spending spree and risk maxing out your card.
- Limited use: Some retail cards can only be used at select stores, making them less flexible than other credit cards.
Choosing the Right Retail Credit Card for Bad Credit
With these pros and cons in mind, let's dive into our top picks for retail credit cards suitable for those with bad credit:
Fingerhut Credit Account
The Fingerhut Credit Account is an excellent choice for rebuilding credit. With no annual fees and a wide range of products available through their online catalog, you can responsibly improve your credit and treat yourself to something nice in the process.
Capital One® Walmart Rewards® Mastercard®
If you're a frequent Walmart shopper, this card could be perfect for you. Offering 5% cashback on Walmart.com purchases and in-store purchases when using Walmart Pay for the first 12 months, you can save money while also building your credit history.
Kohl's Charge Card
The Kohl's Charge Card offers exclusive discounts and coupons throughout the year, saving you money on your purchases. Plus, they provide options to increase your credit limit with responsible use, further helping you improve your credit score.
Amazon Prime Store Card
The Amazon Prime Store Card offers a 5% cashback on all Amazon.com purchases for Prime members, along with promotional financing on larger purchases. If you're a frequent Amazon shopper, this card could help save money and boost your credit score.
Best Retail Credit Cards For Bad Credit Example:
Rebecca's Credit Rebuilding Journey with the Fingerhut Credit Account
Rebecca was a college graduate with a credit score of 540 due to student loan debt and a previous missed payment. She wanted to improve her credit score and enjoy the perks of a credit card, so she started researching retail credit cards.
She applied for the Fingerhut Credit Account and was approved. Within a few months, Rebecca noticed an increase in her credit score as she consistently made her payments on time and kept her balance low. Over the next year, Rebecca continued to improve her credit score, allowing her to apply for more credit cards with better benefits and lower interest rates.
Your credit score doesn't define you. There are options available – retail credit cards being one of them – to help you rebuild your score even if you're struggling with bad credit. Take advantage of these cards' benefits and use them responsibly, and you'll be well on your way to better financial health. Be sure to share this article with your friends and family, follow Flik Eco for more personal finance advice tailored for millennials, and stay tuned for more in-depth guides to help you conquer the world of personal finance!
