Are you feeling stuck in the world of bad credit? The good news is, even with a 605 credit score, there are still credit card options available to help you improve your financial situation. In this article, we'll dive into the best credit cards for those with a 605 credit score, explore their benefits, and discuss the steps you can take to start rebuilding your credit today!
Credit Cards For 605 Credit Score Table of Contents
Understanding Your 605 Credit Score
A 605 credit score is considered to be in the "fair" credit range. This means that you may have had some issues with your credit in the past, such as missed payments, high credit utilization, or possibly even a bankruptcy. However, it's not all doom and gloom – there are still options available for you to improve your credit.
Secured Credit Cards
A secured credit card is one of the best options for those with a lower credit score. These cards require a security deposit, which acts as collateral for the line of credit. The deposit essentially "secures" the card, meaning if you defaulted on your payments, the issuer would use the deposit to cover their losses.
Discover it® Secured
- Minimum security deposit: $200
- Annual fee: $0
- Rewards: 2% cash back at gas stations and restaurants, 1% on all other purchases
- Discover matches your cash back at the end of your first year
The Discover it® Secured is a popular choice due to its relatively low security deposit and generous rewards program. With responsible use, you can even upgrade to an unsecured card without a security deposit later on.
Capital One Platinum Secured
- Minimum security deposit: $49, $99, or $200, based on creditworthiness
- Annual fee: $0
- Automatic credit line increase after 6 months of responsible use
The Capital One Platinum Secured is an option that might require a lower security deposit, depending on your creditworthiness. The automatic credit line increases can help boost your credit score over time as well.
Store Credit Cards
Another option for those with a 605 credit score is store credit cards. These are typically easier to qualify for, as they usually have lower credit standards compared to general-purpose credit cards. However, they're only meant to be used at specific retailers.
Target REDcard Credit Card
- Annual fee: $0
- Rewards: 5% off on all Target purchases
- Regular reporting to the credit bureaus to help improve credit
The Target REDcard is a good choice for frequent Target shoppers, offering a solid discount on purchases. Plus, it reports to the credit bureaus to help you improve your credit score.
Credit Cards For 605 Credit Score Example:
Imagine you decide to opt for the Discover it® Secured credit card. You submit your application and make a security deposit of $200. You can now use your secured card to make responsible purchases, paying off the balance in full each month. Over time, your responsible use is reported to the credit bureaus, helping to increase your credit score.
After one year, Discover reviews your account and sees your consistent, responsible behavior. They decide to match the cash back you earned throughout the year and upgrade you to an unsecured card with a higher credit limit – all while returning your initial $200 security deposit. By choosing the right credit card and using it responsibly, you're now on your way to a better credit future.
Now that you know your options for credit cards with a 605 credit score, it's time to take the first step towards improving your financial situation. Whether you opt for a secured card or a store credit card, remember that responsible use and timely payments are the keys to rebuilding your credit. As you improve your credit score, more opportunities will become available, so keep a positive attitude and stay persistent on your credit journey. Feel free to share this article with others in a similar situation and explore other guides on Flik Eco to learn more about personal finance and investing!