Have you ever been told "sorry, your credit score is too low" while trying to get a credit card? You're not alone. Many people with bad credit struggle to find credit cards that suit their needs. Enter retail store cards for bad credit – these easy-to-get cards can help you build or rebuild your credit score. In this comprehensive guide, we'll break down the top retail store cards for those with bad credit and teach you how to use them to your advantage!
Retail Store Cards For Bad Credit Table of Contents
Why Retail Store Cards for Bad Credit?
Having bad credit can make it challenging to obtain traditional credit cards. However, retail store cards often have more lenient credit requirements and can be an excellent way for those with a low credit score to start rebuilding their credit. Plus, retail store cards often come with added benefits, like discounts and reward programs specific to the store they're affiliated with.
Top Retail Store Cards for Bad Credit
1. Fingerhut Credit Account
- No annual fee
- Reports to all three major credit bureaus
- Wide variety of products available
Fingerhut offers an extensive range of products through their online catalog. The Fingerhut Credit Account helps those with bad credit make monthly payments on purchases while rebuilding their credit score. Since Fingerhut reports to all three major credit bureaus, responsible use of your credit account can significantly impact your credit score over time.
2. Kohl's Charge Card
- No annual fee
- Frequent deals and discounts
- Relatively low credit requirements
The Kohl's Charge Card is a retail card with benefits like exclusive discounts and promotions throughout the year. Though it's not a traditional credit card accepted everywhere, responsible use of this card can help improve your credit score. Just ensure you pay off the balance in full each month to avoid the high interest rates it comes with.
3. Walmart Credit Card
- Offers rewards on purchases
- No annual fee
- Can be used at Walmart and Walmart.com
The Walmart Credit Card is issued by Capital One and offers rewards in the form of cashback on purchases. Those with bad credit are more likely to be approved for this store card than a traditional Capital One card. Plus, the card has no annual fee, and it can help you rebuild your credit through timely payments.
Retail Store Cards For Bad Credit Example:
Imagine you have a low credit score of 550, and you're looking to rebuild your credit. You apply for the Fingerhut Credit Account, and after being approved, purchase a new laptop for $600.
You pay off the balance in six monthly payments of $100 each, on time, and without any late fees. Fingerhut reports your on-time payments to all three major credit bureaus. Over the course of a year, you notice your credit score has improved significantly.
Now that you've experienced the benefits of managing your Fingerhut account responsibly, you can apply for a major credit card with better credit terms and continued improvement of your credit score.
With retail store cards for bad credit, you can stop worrying about being rejected for traditional credit cards and start investing in a brighter financial future. These cards can help you build your credit one purchase at a time, and soon you'll find yourself eligible for even better credit opportunities. If you enjoyed this insightful guide, please share it with your friends and explore more articles on Flik Eco – your go-to resource for personal finance tips and knowledge!