Are you a millennial struggling with bad credit and looking for a way to shop online more efficiently? Look no further! In this comprehensive Flik Eco guide, we'll explore the world of online shopping credit cards tailored specifically for those with bad credit. Let's dive in and find the perfect option to fit your financial needs and enable you to shop with ease!
Online Shopping Credit Cards For Bad Credit Table of Contents
Understanding Bad Credit
Before we jump into discussing online shopping credit cards for bad credit, it's essential to understand what bad credit is and how it affects your finances. Bad credit typically refers to a low credit score, usually below 580 on a scale of 300-850. This can be due to late payments, defaulted loans, or high credit card balances. People with bad credit face difficulties in obtaining new credit, and if approved, they often receive unfavorable terms such as high interest rates or low credit limits.
Why Choose an Online Shopping Credit Card for Bad Credit?
An online shopping credit card for bad credit can help improve your credit score by providing a means to make regular, on-time payments and manage your credit usage more effectively. Additionally, these cards offer exclusive perks and rewards specific to online shopping. This way, you're not only building your credit but also reaping benefits in the form of cashback, discounts, and other rewards.
Secured vs. Unsecured Credit Cards
When it comes to credit cards for bad credit, you'll generally encounter two types: secured and unsecured. Secured credit cards require a refundable security deposit, often equal to your credit line. This deposit reduces the risk for the issuer and may provide better terms compared to unsecured credit cards. However, unsecured credit cards don't require a deposit, making them more accessible for those who cannot afford a secured card's upfront deposit.
Top Online Shopping Credit Cards for Bad Credit
Now that we understand why online shopping credit cards for bad credit are essential, here are some options you could consider.
- Capital One QuicksilverOne Cash Rewards Credit Card: This unsecured card offers 1.5% cashback on all purchases, and you may be eligible for a higher credit line after six months of on-time payments. However, it comes with a $39 annual fee and an APR of 26.99%.
- Discover it Secured: This secured credit card offers 2% cashback for up to $1,000 spent on gas and dining and 1% cashback on all other purchases. Discover also matches your cashback at the end of the first year. There's no annual fee, and you can monitor your credit score for free through Credit Scorecard.
- Petal 2 “Cash Back, No Fees” Visa® Credit Card: This unsecured card offers cashback rewards, ranging from 1-1.5% depending on your payment history. There are no fees, and the APR ranges from 12.99% to 26.99%.
Online Shopping Credit Cards For Bad Credit Example:
Imagine you're an avid online shopper, and you've decided to apply for the Discover it Secured card. You make a $500 deposit, which serves as your credit limit. Over the next few months, you consistently use your card to shop online and pay for other expenses while ensuring you stay below 30% of your credit utilization ratio. As a result, you earn cashback rewards on your purchases, and Discover matches your cashback at the end of your first year as a cardholder. By making your payments on time, you not only enjoy cashback rewards but also improve your credit score over time.
Now that you know about online shopping credit cards for bad credit, it's time to take control of your financial situation by choosing the card that suits your needs best and allows you to shop effectively without hurting your credit score. Remember to spend responsibly, make timely payments, and monitor your credit utilization. And if you find this article helpful, don't forget to share it with your friends and explore other Flik Eco guides to master personal finance and investing!