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Bad Credit Doesn’t Mean Bad Credit Cards

For the past two years, my credit score has been in the tank.

Owning a Capital One Classic Platinum Credit Card helped outCall it a terrible and immature decision, but I attended a private university for five years, funded largely with private education loans.

Because I graduated without a job, I made mistakes paying down debt by missing payments, having payments returned and ultimately had a number of accounts go into default.

Believe it or not, my FICO credit score bottomed out at 441.

Yes, credit scores can get that low.

Thankfully, with a little hard work and some luck, my credit score now sits at 604.

I achieved the 150-plus point improvement by paying all bills on time, not applying for new credit if I knew I couldn’t get it and owning a Capital One Classic Platinum Credit Card.

With a credit score as low as mine, I had few options when it came to securing a new line of credit.

Nearly any reputable credit card issuer would deny my business, but I found three options for unsecured credit. My decision to choose the Capital One-branded platinum card was one of the easiest moves I’ve ever made.

My three choices were between a First Premier credit card, Orchard Bank credit card and Capital One credit card.

The First Premier card offered an unsecured line of credit with a variable APR of 59.99%! In addition, there were annual fees in excess of $59 and, should I ever have missed a payment, my penalty APR would have increased to more than 74%. No, thank you.

Card No. 2 was Orchard Bank. This card was much more reasonable in annual fees ($39) and variable APR (24.99%) but only offered an initial credit line of $300.

This is a viable option for some cardholders with bad credit, but with a credit line that low, it’s tough to improve your credit. Debt-to-credit ratio is one of the ways a credit score is calculated, and even a small purchase can use up most of your credit line.

The Capital One standard platinum was the perfect fit for me, as I was able to obtain a $750 line of credit (which is $1,500 now, as I still own the card), a 21.99% variable APR and a $39 annual fee.

This card doesn’t scream “awesome,” but it is a quality card for people with poor credit.

If you happen to be sitting on a poor credit score and in need of an unsecured credit card to help you rebuild your credit, make sure your search begin and ends with Capital One.

Look for this and dozens of other credit card offers in our extensive database.

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Comments (2)
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  1. Jodi said:
    on May 5th at 09:08 am

    Is that card still around? I cant seem to find it, I am looking for something to rebuild my credit

  2. Mike at Bankaholic said:
    on May 5th at 12:38 pm

    Jodi — You can find this credit card in our database: http://dev-bankaholic.pantheonsite.io/credit-cards/fair-credit/