Solutions to Financial Hardships

Generally, a credit score that is below 601 is considered poor. In recently credit score of around 300 to 499 has been sited and this is not a good place to be in. Having a credit this low would mean that you will be paying more interest rate, also, you might not easily get access to loans. When you apply for credit, whether it’s a credit card, car loan, student loan, apartment rental, or mortgage, lenders will assess your risk as a borrower. Your credit score, along with other information, may affect not only a lender’s decision to grant you credit, but also how much credit and on what terms (interest rate, for example). This might make getting a credit card, almost impossible for you.

The go-to credit card when one has a low credit score is a secured credit card. A secured credit card is like a savings account that you can charge against. Your credit limit is based on the amount of money that you deposit. For instance, you put $500 into the account and you can charge up to $500. It may be reported on your credit report as a credit card. Before you open a secured card, make sure that the issuer reports to the consumer reporting agencies (Equifax, TransUnion, and Experian). Not all secured cards are reported, hence they do not affect your credit score. This might not be your desired effect so we made a list of secured credit cards that are reported.

DISCOVER IT® SECURED CREDIT CARD

Some of the features of Discover’s DISCOVER IT® SECURED CREDIT CARD includes:

• Earning 2% Cash Back: Getting the card makes you eligible for 2% cashback on combined purchases made at the gas stations or restaurants in the volume of $1000 combined. You also earn an unlimited 1% cashback on all other purchases.
• Discover also automatically matches all the cash rewards you have earned at the end of your first year and there is no limit to how much they match.
• You get to use your cash rewards just as your cash because it is yours. So, you which to send the reward to your bank account? well the choice is yours

Bank of America® Unlimited Cash Rewards Secured Credit Card

The Bank of America Unlimited Cash Reward Secured Credit Card comes with no introductory APR and an annual fee of $0. Getting this card makes you eligible for an unlimited 1.5% cashback on all purchases, No limit to the amount of cashback you can earn and cash rewards don’t expire. Rewards can be redeemed by depositing cash rewards directly into your eligible Bank of America checking or savings account, crediting rewards into your eligible Merrill accounts, or by a statement credit to your credit card.

U.S. BANK CASH+® VISA® SECURED CARD

This visa credit card like others is well-positioned to help you build your credit score. The process of building one’s credit score is not always a quick one especial when the score in question is very low. As such one must be patient and ready to work it out. To get started, you earn a $200 rewards bonus after you apply online and spend $1,000 in eligible purchases within the first 120 days of account opening. Also, you get to earn 2% cashback on one everyday category which includes

• Grocery stores
• Gas stations
• Restaurants

First Progress Secured Mastercard

First Progress ensures that the card reports to all three major credit bureaus every month to help you establish or re-establish your credit history. As always, your credit limit is determined by the amount of your security deposit, not your credit score or history! So if building your credit score is one thing you want to do, even at the expense of other bonuses, then this might just be the credit card for you.

Other Cards you could check out includes:

• QuicksilverOne from Capital One
• Capital One Platinum Secured Credit Card
• OpenSky® Secured Visa® Credit Card

Ultimately, a low credit score makes it harder for one to build wealth, hence the need to revisit your credit report. Also, getting any of these cards might really help you out in staying organized.