Having bad credit can feel like a heavy anchor weighing you down, making it challenging to get approved for credit cards, loans, and other lines of credit. However, there's light at the end of the tunnel in the form of easy store cards for bad credit. In this article, we at Flik Eco will explore various store cards that can help rebuild your credit history while still giving you access to purchasing power.
Easy Store Cards For Bad Credit Table of Contents
What are store cards, and how can they help?
Store cards are credit cards issued by retailers for use in their specific stores and affiliated partners. They often carry higher interest rates than general-purpose credit cards, but they tend to have easier approval processes for those with bad credit. As long as you make on-time payments and don't max out your credit limit, store cards can help improve your credit score over time.
Why store cards can be great for bad credit:
- Easier approval process: The credit requirements for store cards are often more lenient compared to traditional credit cards.
- Increased purchasing power: The store card can give you the flexibility to make purchases at the issuing store and pay it off in installments, helping you manage your finances.
- Report to credit bureaus: Many store cards report your account activity to the major credit bureaus, thus helping you improve your credit score as long as you're responsible with the card.
- Discounts and rewards: Store cards often come with exclusive discounts, cashbacks, or reward points on purchases made within the store or partner retailers.
Top 3 Store Cards for Bad Credit
1. Fingerhut Credit Account
Fingerhut is an online retailer that offers credit accounts even to those with bad credit. They have a wide array of products, such as electronics, home goods, clothing, and more. Fingerhut reports your payment history to all major credit bureaus, so responsible use can lead to credit score improvement.
2. Kohl's Credit Card
Kohl's department store offers a store card that often accepts applicants with bad credit. Cardholders can benefit from exclusive discounts and promotions while shopping at Kohl's, and the card also reports to credit bureaus, gradually helping you improve your score.
3. Walmart Credit Card
The Walmart credit card can be another option for those with less-than-stellar credit. With cashback rewards on purchases and reporting to credit bureaus, the Walmart credit card can help you rebuild your credit score while making everyday purchases.
Easy Store Cards For Bad Credit Example:
Jane, a 26-year-old aspiring designer, had a low credit score due to mistakes she made in the past with credit card usage. She wanted to make responsible choices to help rebuild her credit, but her applications for traditional cards were getting denied. After reading about store cards, she applied for a Fingerhut Credit Account and was approved.
Over the next year, Jane only bought items she truly needed from Fingerhut and paid off her balance in full each month. This activity was reported to the credit bureaus, and her credit score began to gradually increase. After a year of responsible store card usage, Jane's credit improved enough to apply for and successfully secure a general-purpose credit card.
By responsibly using store cards tailored for bad credit, you can begin the journey towards rebuilding your financial future. Keep in mind that these cards often have higher interest rates, so always aim to pay your balance in full each month to avoid extra debt. Share this article with your friends who are facing similar credit challenges, and make sure to explore other insightful guides on Flik Eco to continue learning actionable personal finance and investing tips. Your path towards credit recovery and financial freedom starts with one small step—keep moving forward!
