What you Need to Know About 650 Credit Score Credit Cards
Having a credit score of 650 should allow you to get some credit cards. And, it can actually help to build up your credit score if you pay of your minimum payments and keep your account balances low relative to the credit limit on the card. There are some things to keep in mind when looking for credit cards for 650 credit score.
Obtaining a Credit Card Does Not Guarantee an Improved Credit Score
It is important to know what got you your 650 credit score in the first place. If it was credit card debt it is important that you pay off the debtors before trying to rebuild credit with another credit card. Also, know what you can manage. Use your credit card to rebuild your credit by treating it as a debit card. Don’t put more on the credit card than you have in your bank. Make monthly payments on time, and don’t leave a large balance on the card from month to month. Doing this will simply cost you in interest rates and can actually hurt your credit score.
Prepaid Credit Cards Do Not Influence Your Credit Score
Some banks offer prepaid credit cards, like debit cards, to people with low credit. Since this is not a line of credit, it has no influence on raising or lowering your credit score. If you want to use a credit card to build your credit score higher than a 650 this is not the way to go. Just remember, prepaid credit cards for 650 credit score improvement does not work.
Secured vs Unsecured Credit Cards
There are two types of credit cards for 650 credit score that are available to you, a secured card or an unsecured card. So what’s the difference?
A secured credit card is a line of credit that has been secured by your own money. In a sense this is similar to a prepaid credit card, although the money you are putting forward to secure the line of credit isn’t being used, and you actually get it back when you close the card and it is in good standing. For instance, if you want a credit line of $500 you will have to secure $500 with the credit institution. You then continue to use the card as a regular credit card, making your monthly payments and keeping a low balance which can ultimately help build your credit. One thing to keep in mind is that interest rates will still be high for someone with a credit score of 650, so it is important not to keep a large balance on the card or it will end up costing you in the long run.
An unsecured card is a line of credit that you don’t have to secure with your own cash. With a credit score of 650 you may have a smaller than desired line of credit, large interest rate, and possibly other fees (setup fee, annual fee, program fee etc.). It may end up costing near as much as a secured line of credit, only you won’t ever see that money again. Like with the secured card, however, if you are paying your monthly payments and keeping your balance low, it can help you raise your credit score above a 650.
Options of Credit Cards for 650 Credit Score
Ok, so now that you know some of the dos and don’ts along with the different types of cards, what 650 credit score credit cards can you actually get?
Secured 650 Credit Score Credit Cards:
Capital One offers a secured master card with no processing or application fee. They offer regular reporting to 3 credit bureaus. Your security deposit on this card can get you a line of credit up to $3,000. The interest rate on this card is 22.9% and there is an annual fee of $29. First National Bank offers a secured visa card to help you work towards rebuilding your credit. The perks of this card is that it enables you to work towards unsecured lines of credit with the same lender. They offer a change from secured to unsecured in as little as 15 months and your deposit back if you are in good standing. This card has a variable interest rate right around 20.99% and also has an annual fee of $29.
Unsecured Credit Cards for 650 Credit Scores:
Credit One Bank Gas Rewards Credit Card is a great card to start building credit with. This card offers 1% back on all gasoline purchases, no limit on the gas rewards. You can get pre-qualified without affecting your credit score. If you make your first 6 months of payments on time they offer a credit line increase. This card has a variable interest rate between 17.9% and 23.9% with an annual fee of between $35 and $95 dollars. Capital One offers a card for people with fair credit that has many great benefits. Their Quicksilver One Cash Rewards card earns you 1.5% cash back on every single purchase. It has an introductory rate of 0% and 22.9% after the introductory time period. You can access a larger credit line after 5 regular monthly payments, and there is fraud coverage on this card. There is an annual fee of $39 dollars on the Quicksilver one card. Credit One also offers a Bank Visa Platinum card for people with fair credit. Pre-qualifying is available with this card that won’t affect your credit. After 6 months of on-time payments you can get a credit increase. They also provide email and text alerts to let you know when payments are due. The interest rate for this card is between 17.9% and 23.9%, with an annual fee of $35-$99 dollars.
Things to remember when applying for credit cards for 650 credit score:
- Pay off other credit card or outstanding debt first.
- Find a card that fits your needs.
- Whenever possible pre-qualify so that it doesn’t affect your credit score.
- Pay monthly payments on time.
- Keep your balance low.