Can You Find RV Financing With Bad Credit? Understanding Your Options

rvs for sale

Securing financing for an RV can be a concern if you’re dealing with bad credit.

Traditional lending institutions may deem a low credit score as a riskier investment, which can make obtaining a loan more challenging but not impossible.

The good news is that there are financing options available that cater to those with less-than-perfect credit.

While the terms and interest rates may differ from those offered to individuals with stronger credit histories, understanding your budget and what you can afford is an important first step.

Your credit score plays a significant role in the financing options available to you, as it’s a measure of your financial reliability.

RV financing with bad credit might come with higher interest rates or require a larger down payment to offset the perceived risk to the lender.

Still, you’ll find that some lenders specialize in bad credit loans and may provide more flexible terms to accommodate your financial situation.

It’s essential to approach the process with a realistic perspective on what you can afford to ensure that your RV financing aligns with your budget.

Keep in mind that improving your credit score is also a feasible route to better financing options in the future.

Factors Affecting RV Loan Approval

When you’re on the hunt for RV financing with bad credit, it’s crucial to understand which factors lenders typically consider during the loan approval process.

Credit Score: Your credit score is a snapshot of your creditworthiness and plays a vital role in the lender’s decision-making process. If your score is above 600, you’re better positioned, but even with a lower score, you can sometimes secure financing—just be prepared for potentially higher interest rates.

Income: Steady income reassures lenders that you have the means to make payments. They’ll look at your job history and income documentation, such as recent W-2 forms, to gauge your financial stability.

Collateral: An RV loan is usually a secured loan, meaning the RV itself serves as collateral. If you default on the loan, the lender can take the RV to recoup losses. The RV’s value can significantly influence loan terms.

Bad Credit: Bad credit doesn’t necessarily bar you from getting an RV loan, but it does affect your options. With bad credit, focus on improving your chances by getting prequalified, demonstrating steady income, and choosing an affordable RV that fits within a reasonable budget.

It’s wise to get prequalified so you can shop with confidence, knowing what type of RV is attainable and what payments you can afford.

And if you discover that you can’t afford the payments, then it may mean you should stick with cheaper costing tent camping for now.

Consider offers from various sources, like banks, credit unions, specialized bad-credit financing companies, RV dealerships, or private sellers, to find the best loan for your situation.

Remember, the terms might vary, so pick the option that best suits your financial circumstances.

Challenges of Securing RV Financing with Bad Credit

Securing RV financing with a less-than-ideal credit score presents specific hurdles.

You’ll face challenges both in terms of the approval process and the conditions of your financing.

Impact of Credit Score on Financing

Your credit score is a crucial factor in the RV loan approval process.

A low score typically indicates to lenders that you’re a higher risk, which can:

  • Prevent loan approval: Some financial institutions might not approve your RV loan application.
  • Limit loan amount: You may not qualify for the loan amount required to purchase the RV you want.
  • Restrict financing options: Fewer lending options could be available, forcing you to choose from less favorable terms.

High-Interest Rates and Fees

Bad credit often translates to more expensive financing for your RV.

Expect to encounter:

  • Higher interest rates: Lenders will likely charge you higher interest rates as compensation for the increased risk they take on.
  • Additional fees: You might have to pay extra fees, reflecting the administrative costs of processing loans for individuals with bad credit.

Remember, RV loans are a significant commitment, and the challenges associated with securing financing can impact your finances for years.

It’s crucial to weigh these factors carefully as you plan your RV purchase.

Types of RV Financing

When you’re looking for RV financing with bad credit, understanding the types of financing available can help you find a solution tailored to your situation.

Dealership Financing

Dealerships often offer financing directly on-site, which can simplify the purchase process.

RV dealers may have relationships with various lenders, allowing them to offer a range of financing options, even if you have less-than-ideal credit.

The interest rates for dealership financing can vary, so it’s important to review the loan terms and the APR (Annual Percentage Rate) carefully.

Bank and Credit Union Loans

Banks and credit unions are traditional sources for loans, and they offer RV financing as part of their product portfolios.

While banks might offer competitive interest rates, credit unions are known for their more personalized customer service and potentially lower rates for members.

However, you’ll often need a better credit score to qualify for these loans.

Online Lenders and Other Financing Solutions

Online lenders like Southeast Financial and My Financing USA specialize in RV loans and may provide more flexibility for those with bad credit.

These platforms can offer a quick application process and fast decisions.

Be mindful of the financing options they provide, ensuring you understand the terms, loan amounts, interest rates, and APR before committing.

Exploring Lender Options

When searching for RV financing, especially with a less-than-ideal credit score, it’s important to review and compare available lenders meticulously to secure a loan that aligns with your financial situation.

Comparing RV Loan Lenders

When comparing lenders for an RV loan, you’ll find that options range from traditional banks and credit unions to online lenders.

Each comes with different terms and interest rates, which are often influenced by your credit score.

For instance, interest rates can vary greatly—some lenders may offer rates as low as 4.29% for individuals with strong credit, whereas those with bad credit might face rates up to 24.99%.

You’ll want to consider factors such as:

  • Loan Terms: The length of the loan and the monthly payment amount.
  • Interest Rates: How much extra you’ll pay over the life of the loan.
  • Down Payment: The initial amount you’re required to pay upfront; more might be required if you have bad credit.

Shop around and request quotes from multiple lenders, including:

  • Local Banks
  • Credit Unions
  • Online Lenders specializing in bad credit loans

Bad Credit RV Loans

If you’ve got bad credit, don’t lose hope—there are lenders that specialize in bad credit RV loans.

These lenders look beyond credit scores and consider your entire financial situation, offering loans to those with lower ratings.

It’s worth checking with RV dealerships, which often have experience with customers with varied credit histories and may offer financing solutions directly or through their partnership with lending institutions.

Remember, securing a loan with bad credit might entail:

  • Higher Interest Rates: You’ll likely face higher rates to compensate for the lender’s increased risk.
  • Larger Down Payments: Providing more than the typical 20% down payment can improve your loan approval chances, and potentially affect your interest terms favorably.

Before applying, review your credit report for any errors and gather evidence of stable income to bolster your application.

Let your prospective lender know if you can provide a larger down payment or if someone can co-sign the loan with you.

Strategies to Improve Financing Eligibility

To secure RV financing with bad credit, focus on actions that enhance your appeal to lenders by showing responsibility and financial stability.

Improving Your Credit Score

Check Your Credit Report: Start by obtaining a free report from platforms like Credit Karma to look for any errors or discrepancies that could be negatively affecting your score.

If you find any, dispute them with the credit bureau.

  • Pay Down Debts: Aim to reduce your credit utilization ratio, which is the percentage of credit you’re using compared to what’s available. A lower ratio reflects positively on your financial management skills.
  • Settle Bills On Time: Consistently paying bills when they’re due contributes to a positive payment history, which can bolster your credit score over time.
  • Avoid New Credit Lines: Every time you apply for credit, it generates a hard inquiry on your report. Too many hard inquiries in a short period can lower your score. Only apply for new credit if absolutely necessary.

Making a Larger Down Payment

Save for a Hefty Down Payment: Lenders see a larger down payment as a sign you’re less of a risk.

It demonstrates:

  • Commitment: You’re investing a significant amount of your own money into the RV, which makes you less likely to default.
  • Lower Loan Amount: It reduces the overall amount you need to finance, which can often secure more favorable loan terms and a lower interest rate.

Aim for a down payment that is substantial relative to the RV’s price—10% to 20% when possible, understanding that the higher, the better from the lender’s perspective.

The Role of Down Payments in RV Financing

When financing an RV, you’ll find that the down payment is not just a formality—it’s a key component of the loan process.

Required or recommended down payment amounts typically range from 10% to 20% of the purchase price.

Here’s how this initial lump sum affects your financing:

  • Negotiating Power:
    • A substantial down payment might improve your bargaining position. Sellers often view buyers with larger down payments as more serious and financially stable, potentially leading to better terms.
  • Loan Amounts:
    • The more you put down upfront, the less you’ll need to borrow. This can mean lower monthly payments and less interest paid over the life of the loan.
  • Monthly Payments:
    • A down payment directly influences your monthly payments. A higher down payment generally results in more affordable monthly installments.

You should also know that if your credit history isn’t great, a substantial down payment might be especially important.

Lenders undertake more risk when financing someone with bad credit; a larger down payment demonstrates your commitment and reduces the lender’s risk, which might make financing possible where it otherwise wouldn’t be.

So, when you’re budgeting for an RV, don’t just focus on the sticker price.

Keep in mind that what you’re able to pay upfront can play a significant role in the overall financing equation.

Understanding Loan Terms and Conditions

When you’re looking into RV financing with bad credit, it’s crucial to understand the specifics of loan terms and conditions as they’ll dictate your financial commitment.

Interest Rates and APR

Interest Rates directly influence the cost of borrowing money.

The Annual Percentage Rate (APR) encompasses the interest rate plus any additional fees or costs associated with the loan.

As a borrower with bad credit, you’re likely to face higher interest rates, reflecting the increased risk to the lender.

To find the current interest rate for bad credit RV loans, it’s useful to check out multiple sources to get an average understanding.

Use a loan calculator to see how different APRs affect your monthly payments.

Loan Term Length and Repayment

The loan term length is the period over which you will repay the borrowed funds.

RV loan terms can vary widely, typically ranging from a few years to over a decade.

A shorter loan term means higher monthly payments, but you’ll pay less interest overall.

On the other hand, a longer term will lower your monthly payments but cost more in interest in the long run.

It’s important to choose a repayment plan that aligns with your budget while considering the total cost over the life of the loan.

Alternative Financing Options

When your credit isn’t stellar, you still have avenues to secure financing for an RV, whether it’s a motorhome or a travel trailer.

Two notable methods are personal loans and home equity loans.

Both options provide an opportunity for funding without relying strictly on traditional RV loans.

Personal Loans and Unsecured Loans

Personal loans can be a viable option for when you’re looking to finance an RV.

Since these loans are typically unsecured, they don’t require collateral like your home or RV.

Sofi is one of the known lenders offering personal loans which could be used to purchase an RV.

  • Pros
    • No collateral needed.
    • Fixed interest rates.
  • Cons
    • Higher interest rates compared to secured loans.
    • May have higher monthly payments.

Home Equity Loans for RV Purchase

If you’ve built up equity in your home, a home equity loan or a home equity line of credit (HELOC) can be another alternative.

You can leverage the equity in your property to secure a loan, often at a lower interest rate compared to unsecured loans.

  • Pros
    • Lower interest rates due to collateral.
    • Possible tax benefits (consult your tax advisor).
  • Cons
    • Your home is at risk if you default.
    • The process may be longer due to the need for home appraisals.

The Impact of Bankruptcy on RV Financing

When you’ve experienced bankruptcy, obtaining financing for an RV can be more challenging.

Lenders typically view a bankruptcy history as a higher risk, which might affect your ability to secure an RV loan.

It’s important to understand how this could impact your financing options, approval process, and potential interest rates.

After Bankruptcy: Your bankruptcy stays on your credit report for up to 10 years and could make lenders hesitant.

They’re mostly concerned with how recently the bankruptcy occurred and your financial activity since then.

  • Financing Options: You may still find RV financing through certain lenders willing to work with individuals who have poor credit or a bankruptcy history. The terms, however, are often less favorable.
  • Approval Chances: Getting pre-approved may help you gauge your ability to finance an RV and determine what terms might be available to you.
  • Interest Rates: If you’re approved, you’ll likely face higher interest rates as lenders compensate for the perceived risk associated with your credit history.

Here’s a quick list to keep in mind as you navigate RV financing post-bankruptcy:

  • Rebuild Your Credit: Take steps to improve your credit score with timely payments and reducing debt.
  • Save for a Larger Down Payment: This can reduce the loan amount and may improve your chances of approval.
  • Explore Different Lenders: Some lenders specialize in bad credit or post-bankruptcy loans.

Remember, it’s still possible to secure an RV loan after bankruptcy, but it requires diligence and possibly facing stricter terms due to the increased risk for lenders.

The 8 Best Credit Cards for Small Business Owners

credit cards

If you’re running a small business, then you likely could use a credit card to purchases supplies and other things for the business.

But how you do you know which credit card is the best one for you to use for this purpose?

Plenty of credit cards target business owners, but at the end of the day you need a credit card that works for you, instead of the opposite.

There are several business credit card options, and figuring out which is the best to get as a small business owner can be tricky.

That’s why we asked some experts for their take on it.

Let us look at the top choices for the best credit cards for small business owners and some of their features.

1. Amex Gold

The American Express Gold card offers a really strong return rate on advertising and gas, two big expenditures for businesses.

These categories earn 4x the points, which allow you to use those amassed points to either travel, or cover other business expenses.

recommended by: Alex Miller, Founder & CEO of, Rene Langer, Founder of Pick HVAC, and Willie Greer, Founder of The Product Analyst

2. Amex Blue Cash

AmericanExpress credit cards are the best for company use as they provide the biggest cashback as compared to other credit cards.

This cashback is very important since it can reduce the cost of something that you are buying for the company.

For instance, you can use this on your hotel stay for a business trip. You can find the cheapest deals in a hotel, use the card, then only pay a cheaper amount as it provides good cashback. Hence, you will save a lot for your company.

recommended by: Jeff Webster, Operations Manager of Clicks Marketing, Nelson Sherwin, Founder of PEO Companies, and Scott Nelson CEO of MoneyNerd

3. Chase Ink Business Preferred

If you plan to spend a lot (read $5K+ per month) on social media advertising), then the Chase Ink Preferred is the best bet.

The annual fee is quite small at roughly $100, but you receive 3X points for every dollar spent on ads.

In our situation, we expect to spend approximately $10,000 a month on Facebook ads. That’s $120K X 3 points =360,000 points on ads alone.

We assume those Chase points are worth about 2 cents each, so it ends up meaning we receive $7,000 worth of points with a card that only cost $100!

recommended by: Sean O’Dowd, CEO of Close Concierge, Andy Wang, Co-founder of Knives Sensei, Justin Carpenter, owner of Modern Maids, Isaac Bullen Asia Pacific Director of 3 White Hats, Jenna Lofton of Stock Hitter, Austin Henderson, Founder of All About Pools, Tomy Boboy, Founder of Everyday Finance, Jack Shepler, Founder of Ayokay, and Kristin Young, Founder of Snorkel & Hike

4. Chase Ink Business Unlimited

Chase Ink Business Unlimited, an annual fee-free business credit card that mirrors the Chase Freedom Unlimited Credit Card, a consumer credit card that also earns unlimited 1.5 percent cashback, is one of the finest credit cards for small businesses.

Cashback is earned through Ink Business Unlimited’s Ultimate Rewards points, which may be redeemed for cash, gift cards, travel purchases, and other products.

A significant sign-up incentive of $750 is available after you spend $7,500 in purchases within three months, as well as a 12-month 0% APR promotion on purchases.

The latter is uncommon among credit cards for small businesses.

recommended by: Kevin Jourdan, Co-founder of Dot Market, Connor Brown, Founder of After School Finance, Lillian Dodd, Founder of The Hobby Kraze, Adam Knihtila, CFO of Adam Kae & Associates, and Mark Wilcox, Founder of Camping Forge

5. AmEx Business Platinum Card

For a frequent traveler like myself, it has everything I need from a business credit card.

While the annual fee is high compared to some other options, the perks make up for it.

My favorite thing it offers is 5x points on hotels and flights.

It also gives you elite hotel status at certain chains, airport lounge access, trip insurance, and more.

The signup reward is incredible at 100,000 points.

While it may not be worth it if you don’t fly or travel much, I have found that it quickly pays for itself. It even covers the cost of getting TSA Precheck.

recommended by: Ravi Parikh, CEO of RoverPass, John Medina, Founder of John Medina Buys Houses, and Sarah Walker, Founder of Dog Food Desire

6. Capital One Spark Business card

We love our credit cards for our small business! We rack up points on them and we use those points to reward our staff or run influenced campaigns.

Our favorite credit card is the Capital One Spark Business card.

On this card we get 2 points for each dollar spent, which equals 2% back on everything we spend . This can add up quickly and we highly recommend this card!

recommended by: Matthew Meier, Founder of MaxTour, Ralph Severson, Owner of Flooring Masters, Joel Phillips, Founder of Home Guide Corner, and Kieren Windsor of Smart Home Insider

7. Business Platinum US Bank Credit Card

The Business Platinum US Bank Credit Card was a great tool to finance some of my company’s startup expenses.

It was an excellent option for my business because it has a 0% interest rate for the first 18 months.

These terms gave me plenty of time to get my business off the ground and pay off the card while building my company’s credit.

recommended by: Jake Irving, Owner of Willamette Life

8. Citi Corporate Card

Low cost & flexible designation of card liability.

Fees, Rewards & Perks
Annual price: S$160.5
0.40 miles (1 pt) per S$1 spend
Free travel accident insurance, up to S$1 million per cardholder
Free annual coverage of employee misuse (US$25k/cardholder, US$1.65

Citi Corporate Card is fairly simple and, therefore, is quite easy to use.

Every S$1 spend earns 1 Citi ThankYou Point, which is equivalent to 0.40 miles.

Points can alternatively be redeemed for cash rebates or rewards vouchers.

Companies have the option to decide between Sole Corporate Liability, Joint & Several Liability, or Cardmember/Personal Liability.

Essentially, these designations reflect who assumes responsibility for making on-time card payments.

recommended by: Andy Ha, Head of Marketing for Clooms

Picking The Best Travel Credit Card (2023)

concept tourism travelling young man is preparing travel sitting sofa

If you’ve got a bit of travel on the horizon, then you might want to maximize those credit card rewards by picking a travel credit card.

Travel credits cards often let you earn things like airline miles and hotel points, which you can use to cash in on free flights and hotel rooms.

But there’s a lot of different credit cards out there targeting travelers, so how do you find the right travel credit card for you?

Keep reading for our tips on finding the right credit card for your travel hacking adventures.

Look For No Foreign Transaction Fees

If you’ll be traveling abroad, then you need a credit card that doesn’t penalize you for spending money in a currency other than you own.

What you need to look for is a card that has no foreign transaction fees. This means that you won’t incur a fee for a foreign currency to USD conversion.

“Though many cards have excellent sign-up bonuses that can lead to thousands of points to be redeemed for travel rewards,” says Maggie Turansky of The World Was Here First, “the majority of these cards seem to charge a conversion fee when paying in a foreign currency. If you want to get the most out of your credit card while travelling abroad while also saving as much money as possible, then finding a card that doesn’t charge these fees is absolutely essential.”

Tim White of Mile Pro also agrees. He says, “As a frequent International traveler, being able to use my card anywhere in the world without paying astronomical conversion fees is very important. “

“One of the most important features for a travel credit card is to have no foreign transaction fees,” says David Leiter of The World Travel Guy.

Gene Daniels of Learning CBD Oil echoes the same sentiment. “A lot of card users may not be aware of foreign transaction fees since they don’t happen when you’re using your card in the United States (i.e. domestically), but as soon as you go to a different country and start using your card you’ll get dinged for a fee — usually 3 percent on top of your purchase!”

“My #1 tip on picking the right travel credit card is to search for cards that come with no international fees, says Brian Wills of Nuts About Coffee. “Many banks offer credit cards that are specifically designed for international use and they don’t charge for use abroad. This is hugely beneficial because you can rest assured that you won’t get a surprise bill full of fees when you get home.”

What Are Your Spending Habits?

“You also need to identify your top credit card spending habits, as you will often be rewarded for things like gas and grocery purchases to name a few. For my family,” says Petra Amara of Rowing Crazy, “we make many large ticket purchases for our family business, so we have been able to capitalize on additional rewards points as a result.”

“Once you have identified your travel and spending habits, you will easily be able to narrow down which travel credit card will benefit you the most in the long run,” recommends Gracey Young of House Fragrance.

“Apart from zero international transaction fees, get a travel card that is geared to your purchase lifestyle,” says Sam Lepak of New Rich Nomads.

“For example, if you fly then get one with points for flying. Or if you dine out, then get one towards dining. Don’t change your purchase behavior for the credit card and don’t pay unnecessary fees.”

Know What Type Of Rewards You Want

“Travelers need to decide whether they want simple points that have a fixed value, or more complicated points that have a variable value,” says Andrew D’Amours of Fly Trippers. “That’s the most important. “

“Whether the rewards program belongs to a bank, a hotel chain, or an airline is secondary contrary to the popular myth,” D’Amours goes on to say.

“What matters is to decide which type of point system to dive into. Simple is great for beginners, but more complicated offers potential for unlimited value and outsized value if you learn how to use them.”

“I like to use cards that either give me cash back on every purchase or where I earn non-branded rewards that I can use on anything,” says Rolf Hansen of Luxury Cars A to Z.

“For instance, when I’m traveling within the United States I like to use my American Express Gold card because it gives me Membership Rewards points that I can use for everything from hotel stays to restaurant gift cards to free flights.

Determine If You Want Other Perks

“If you want premium travel perks, like airport lounge access or expedited airport screening, it makes sense to go with a premium travel card,” says Garth Adams of I Know The Pilot.

“This could include cards like the Chase Sapphire Reserve and The Platinum Card from American Express.”

“If you don’t take advantage of airline lounges,” says John Taylor Garner of Card Curator, “there’s no need to pay the hefty annual fees of the AMEX Platinum or Chase Sapphire Reserve card. If you do like lounges, they can save you a lot of money.”

“Some travel credit cards offer perks like money back when you use Uber,” says David Douek of Beeco Green. “That’s why I love the Platinum Card from American Express because it earns me Uber credits each year.”

Plan The Trip And Then Pick The Credit Card

The #1 tip for picking the right card for travel is to start planning a trip, and then pick your credit card based on what can get you to that trip the fastest, says Alex Miller of Upgraded Points.

“Is it a certain kind of points you need to accumulate to get there? A specific hotel brand in that city or country that you can transfer points to?”

“Does the card provide lounge access for flights while you travel there? If you work backwards, and start by looking at your trip first, it’s much easier to select a card based on that vs the other way around.”

“I like to look for credit card offers that come with a big sign up bonus, like enough air miles to fly for free,” says Kenneth Byrd of Curl Centric.

“Of course, this is ideal if I’m not set on flying at a certain time. Then, I just wait for offers that meet my needs and book the trip after getting that offer. That’s how I’ve been able to fly to Hawaii for free in the past.”

Do You Want To Pay An Annual Fee?

“If you only travel occasionally, a credit card with lower annual fees that can earn bonus rewards on everyday purchases might be a better fit than a card with a high annual fee,” says Thomas Kanze of Nomadific.

“This way you’re able to earn valuable points or miles to help cover the costs of airfare or hotel stays for your one or two trips each year.”

“Annual fees vary on the cards, and some are more worth it than others,” says Spiro Koulouris of Gout and You. “My Chase Marriott card has a low annual fee, but I also get a free hotel night each year that’s worth more than the annual fee.”

Is A Co-Branded Card A Good Option?

You may want to consider if the card is co-branded or general purpose, like a Marriott Visa card or a generic Chase credit card.

“Co-branded cards narrow your options,” says Sharon Gourlay of Tasmania Explorer, “but since they are issued in collaboration with an airline or hotel, they can have additional benefits such as free checked luggage or accommodation upgrades.”

“Do you find yourself using the same airline or airline alliance (SkyTeam, Oneworld, etc.) for the majority of your flights? If this is the case,” says Tanya Brothen of Travel Upgraded, “it’s worth it to invest in that airline’s most rewards-heavy credit card.”

“For example, when a work assignment had me flying Delta and other SkyTeam airlines multiple times per year, I signed up for the Delta SkyMiles Reserve Card. It gave me access to Delta’s Sky Club lounges, priority boarding, bonus miles on Delta purchases, and other Delta perks.”

How Is The Interest Rate?

“You might think it would be relatively simple to find the card with the lowest interest rate, no (or lower) annual fee, the most generous signing bonus, and the best reward;” says Michelle Henry of Outdoor Dog Fun, “unfortunately, this is not the case.”

“You definitely want the lowest interest rate. However, if you can repay the expenses in full each month, the interest rate is not a problem because the interest rate only applies to the balance after each month’s maturity date.”

“Since most credit cards have a low introductory rate, it’s important to pay attention to the true interest rate,” recommends Tauraus Sinkus of 21 Day Hero. “Because when that intro rate is up, you’ll be on the line for the higher rate for any balances that you carry.”

The Top Travel Credit Cards As Recommended By Frequent Travelers

1. Barclays Arrivals+ Card

The Barclays Arrivals+ card is my favorite credit card to use for travel, says Steven Evans of Air Fryer Bro. You earn points for all purchases, with some purchases (like travel) earning extra points. Then, you cash in the points for a statement credit and you earn more points back if you put that credit towards travel expenses. Plus, no foreign transaction fees!

Connor Brown of After School Finance agrees. My everyday credit card is the Barclay Arrivals, says Brown, which is hands down the best card for travel. You get points back on all purchases and then you can use those points for pretty much anything, but it’s a better deal for you to apply those points as payment toward your travel.

2. Capital One Venture card

I like the Capital One Venture card, says Michael Barnett of Performer Life. I earn back on everything, so I use it for all my purchases and then enjoy the rewards of travel.

Since I’m always grabbing lunch out, the Capital One Venture card is my most-used credit card, says Michael Fayard of Fayard Law. I love that my lunch expenses and every day expense earn me free or discounted travel.

3. Delta SkyMiles Gold American Express Card

I do a lot of domestic travel for work and always fly on Delta, which makes the Delta Skymiles Gold card from American Express my top pick for a travel credit card, says Alex Griffin of Oxford Gold Group. It’s got a great signup bonus too.

4. Capital One Quicksilver card

The Capital One Quicksilver card is definitely one of the best rewards travel credit cards, says Tommy Gallagher of Top Mobile Banks. You get 1.5% back on everything and you get $200 cash back after spending $500 in the first 3 months. There is also no annual fee.

Jenny Muscolo of Connection Copilot also recommends the Capital one Quicksilver card for earning rewards for every day purchases.

5. Chase Sapphire Reserve

The Sapphire Reserve comes with a super easy-to-use $300 travel credit, notes Hafiz Muhammad Ali of Omnicore Agency, which effectively reduces the annual fee to $250.

People routinely scoff at the Chase Sapphire Reserve’s $550 annual fee, but you can easily make a profit on that card, says Andy Medearis, of Deals Points.

You can then get more than the $250 annual fee in value by utilizing the card’s airport lounge access, including restaurants and spas, $120 Peloton credit, $60 DoorDash credit, primary rental car insurance, trip delay insurance, and purchase protection, adds Medearis.

Personally, the trip delay insurance has saved me a lot of money.

For example, my wife and I missed our connecting flight in Chicago due to snow. While everyone on the plane was freaking out, I was booking a room at the Park Hyatt, dinner reservations at an upscale sushi restaurant, and transportation because I knew that Chase would cover my $500+ in expenses due to the delay.

Best Credit Cards for International Students (Study Abroad Credit Cards)

joyful young student girl wearing glasses back bag holding credit card clenching fist with closed eyes isolated orange

For international students, acquiring a credit card in a foreign country like the USA is often a challenge with all the requirements put in place by the card issuers.

For example, you need to provide your social security number (SSN) to apply for a credit card.

Luckily, this is always not the case.

Students’ credit cards are particularly designed for students mainly because they have low-interest rates, lower fees, and in most cases, they have many perks and rewards.

The best credit cards for international students are most likely to accept students with little or lack a credit score or credit history.

And, have no foreign currency exchange fees.

There are several credit card options, and figuring out which is the best to get as an international student can be tricky.

Let us look at the top choices for the best credits for international students and some of their features.

Best credit card option for international students studying in the United States of America: Deserve® EDU MasterCard

Deserve® EDU Mastercard is the best credit for any international student studying in the USA.

The credit card allows students to build better credit without an annual deposit or fee, earn a cashback reward, and some decent perks.

In addition to that, it is an excellent option since applying does not require a security deposit, a credit history, or a social security number. 

This credit card is primarily designed to reward students with positive financial habits and health.

The card has up to a $5,000 credit limit and offers unlimited 1% cashback on all purchases.

The purchases do not include money orders, prepaid cards, or any remotely resembling a cash equivalent. 

One major benefit of this card is Amazon’s Student Prime membership for one year for students who spend $ $500 in the first three billing cycles using the card.

The lifetime value for this benefit is $59. It also comes with a theft and phone damage insurance of up to $600. 

The card has a mobile app that allows students to manage their cards, including enabling international transactions and card lock.

It also has reward redemption, which comes in the form of a statement credit. The reward statements are automatically issued in amounts of $25 once the limit you reach their limit.

Best credit card option for United States Students studying abroad: Bank of America® Travel Rewards credit card for students

Bank of America®’s Travel Rewards credit card for students is an excellent option for frequent student travelers.

The card provides several great benefits with no foreign transaction fees, no annual fee, and for every one dollar spent on purchases, you earn 1.5 points.

With the card, you get a $200 cash reward bonus in the first 90 days of spending $1000. The

This credit card allows you to get 3% cashback on a category of your choice as well as 2% at wholesale clubs and grocery stores.

Alternatively, you can get a $2500 combined wholesale club/ grocery store /choice category quarterly purchases and unlimited 1% on all other purchases.

With the card, you can update your category choices for future purchases on each calendar month using online banking or mobile banking or leave it like that; it stays the same.

With the chip technology now, you can get enhanced protection and security at chip-enabled terminals.

Finally, you can maximize your cash back for each of the categories of your choice: home improvement /furnishings, gas, travel, dining, online shopping, or drug stores. 

Best credit card option for building credit: Journey® Student Rewards from Capital One®

Journey® Student Credit Card-Capital One® is an ideal credit card option for any student or anyone who builds their credit and gets a reward for it.

Early or on-time payment of bills is an essential part of building your credit as you also enjoy a 1% cashback on all purchases that go up to 1.25%.

Other benefits with the card include:

  • No annual fee.
  • An increase in credit limit after the first five monthly payments on time.
  • No foreign transaction fees.

The Journey® Student Rewards from Capital One® is majorly about helping students or other people build their credit.

For that reason, students with limited credit files have a high chance of getting approval than with any other cards. 

Best student credit card option for no fees: Petal® 2 Visa® Credit Card

Petal® 2 Visa® Credit Card stands out as one of the many credit cards with No fees whatsoever: no over limit fee, no annual fee, no late fee, no foreign transaction fee.

The card provides 1% cashback for all the purchases and 1.5% cashback after making on-time payments in the first 12 months.

Instead of entirely relying on your credit history, Petal® 2 Visa® Credit Card checks your digital financial records when deciding on your credit approval or determining their potential risk. 

It’s an option for students with no or little credit histories.

It has an advanced Petal’s mobile app with automated payments and makes it easy to track and manage your payments and quick pre-approval rate.

If you are looking for a card with no fees or are worried about getting yourself in trouble with fees, this is a great option. 

Best credit card option for Rewards and Bonuses: Discover it® Student Cash Back

Discover it® Student Cash Back Credit Card is a popular student credit card because of its various rewards, such as rewards for maintaining good grades and several huge bonuses.

Other benefits of the card include no foreign transaction fee or annual fee, 1% cashback on all your purchases, and 5% cashback up to $1500 combined quarterly purchases.

Your list of merchants is usually changed each quarter. 

With the card, all your credit payments get reported to the major USA credit bureaus.

However, Discover it® Student Cash Back requires a social security number for international students’ credit card applicants.

Our selection process

We scanned through multiple student cards and focused more on those that accepted alternative ways of validating identity or determining associated risks.

These two factors are very important for international students, especially those who have no access to Social Security Numbers (SSN)

We also considered cards that charge reasonable transaction fees, which can be beneficial for students with limited resources or those aiming at making savings on their purchases.

We also looked at those that offer rewards, such as cashback or points that can be utilized in other areas such as traveling and hotel bookings.

Making the most out of your international student card

Student credit cards are ideal assets, especially for international students who often find it hard to get credit cards abroad.

While it’s a great privilege, it comes with great responsibility.

To receive the best credit-building miles out of your student cards. You must at least make the monthly minimum required payments on time and in full.

You may also want to set up recurring payments, so you don’t skip a payment by mistake.

You may also want to set up recurring payments, so you don’t skip a payment by mistake.

If you use a card with an exclusive 0% purchase APR for a limited time — say, to buy school supplies to cover an emergency — make sure you pay off the balance before the introductory term expires to prevent interest charges.

After the intro cycle ends, your APR will be determined by the lender’s evaluation of your credit risk.

Important Note: The student cards presented above are not evergreen. As you continue to grow your credit, you can try other credit cards offering more or better perks.

Improve Credit Scores By Using Less Of Your Available Credit Limit

digital increasing bar graph with businessman hand overlay

Credit scores are complicated, and many things as we may think are normal, may actually adversely affect your credit.

For instance, many people don’t realize that there is such a thing as using too much credit.

Sure, you may have lots of credit cards with high limits, however, if you want to maintain a good credit score, you really need to watch your spending.

One method of doing so is by making sure you are always using less credit than is available to you.

With that in mind, here is a closer look at how this works.

Why Keeping Balances Low is Important

Firstly, when it comes to your credit cards, it is important to keep your balances low.

This is especially the case when it comes to revolving credit, which allows you to continuously borrow money up until a certain limit.

While these limits seem to be set in stone, they can often be raised.

This is not only a good way to get into lots of debt, which you may struggle to repay, but it can also adversely affect your credit score.

Therefore, those who are not careful in terms of how much credit they are using can end up with astronomical balances as well as terrible credit. 

How High Credit Utilization Affects Your Credit Score

If you are constantly using most of your available credit, this will become a major problem.

This is especially the case if you are only making minimum payments and cannot really afford to pay your credit cards off in a timely fashion.

This is because the balances of your credit cards are regularly reported to credit card agencies and those who constantly have high credit utilization scores are deemed to be problematic.

Generally speaking, most people will pay credit cards off as quickly as possible, to avoid excess fees and other issues.

When this is not possible, it starts to make it look as though you are living beyond your means and can’t truly afford your lifestyle.

Therefore, you become a credit risk in the eyes of most lenders.

Therefore, people with bad credit looking to improve their credit score should start by lowering their credit utilization scores. 

Tips for Lowering Your Credit Utilization

If you are looking for ways to lower your credit score, there are several ways to go about this.

Some of which are as follows:

  • Request Higher Limits: Although it may seem to be counter-productive, requesting higher credit limits is a great way to reduce your credit utilization scores. This is because this is a way to immediately lower your rate of credit utilization. However, if you are the type that has terrible spending habits, this could be risky. Additionally, there is no guarantee that your credit card company will approve the increase. Applying for increases and making inquiries can also adversely affect your credit score. 
  • Create Balance Alerts: It’s easy to overspend when you aren’t paying attention to your spending. Depending on what your credit situation is, one bad move can result in a skyrocketing credit utilization score. However, by setting balance alerts, you will be notified whenever your credit card limit reaches a certain point. 
  • Make More/Higher Payments: If possible, you should also try to make higher payments or pay your bills more than once a month. For instance, if you are able to make higher payments, this will help you lower your utilization score much faster. On the other hand, if you are able to make smaller payments twice a month, this is a great way to reduce your credit utilization score. 
  • Track Your Statement Closing Date: Another thing you can do to lower your credit utilization is to start tracking your statement closing date. This is because the balance you owe on your statement is what will be reported to the credit bureaus. So, if possible, you want to pay your bill down as much as possible before the statement closing date. 
  • Become an Authorized User: Another way you can lower your credit utilization score is by becoming an authorized user on someone else’s account. If you have a friend or family member who is willing to add you as an authorized user, this can be another way to lower your utilization rates. As long as the credit card you are being added to has low credit utilization rates, you will be able to benefit by being added to their credit card as an authorized user. 

Overall, people with bad credit looking to improve their credit score need to do their very best to reduce their credit utilization rates.

Some methods of doing so are creating balance alerts, requesting higher limits, tracking your statement closing dates, and making sure you pay your credit cards before, which can be very effective ways to reduce your utilization rates.

Moreover, if you have someone in your life with great credit, being added as an authorized user can be an easy way to help you start lowering those rates.

Either way, if you are serious about achieving good credit, focusing on lowering your credit card utilization rates is one of the best things you can do. 

How To Pad Your Credit Report If You Have Negative Items

businessmen signed joint

The majority of people who have a significant amount of credit history tend to have at least one negative item on their credit report.

It is also important to keep in mind that quite a few items that are listed on the credit reports of consumers in the United States like you might not be entirely accurate.

As a result, you are well within your rights to dispute these items and try to get them removed from your credit history if at all possible.

However, you can still improve your credit report even if you think it’s unlikely you can remove negative items from it.

Here are some things you can do to improve your credit report if you have negative items on it. 

1. Start A History of Recent On-Time Payments

As you more than likely know, more recent information affects your credit more than older information does.

Additionally, missed or late payments are one of the most common negative items on a person’s credit report.

You can pad your credit report by establishing a recent history of making your payments on time.

Since your credit score is largely based on the past two years of credit history, starting and continuing a trend of on-time payments can definitely improve your overall credit report. 

2. Get A Credit Builder Loan at a Credit Union

Installment loans are a useful tool if you want to positively impact your credit score.

This is due to the fact that installment loans diversify the types of debt that you build up and pay.

As a result, if you pay installment loans on time, you can actually improve your credit score.

The number of credit accounts you have and the types of credit accounts that you have comprise roughly fifteen percent of your overall FICO score.

Reach out to your local credit union and find out if they offer Credit Builder Loans as one of their financial products. 

Typically, credit builder loans can vary greatly, from a minimum of $500 to a maximum amount of $3,000, and they come with repayment terms up to a maximum of 36 months.

It is important to keep in mind that not all credit unions offer credit builder loans to their members.

You should also know that you will not actually receive the loan proceeds with a credit builder loan and the credit union takes out the loan then freezes the money in an interest-bearing savings account.

Naturally, this account is in your name.

After that, you make your payments, along with interest, until you have completely paid off the loan.

Once you have paid it all off, you receive the money as well as any dividends that have been earned on the initial savings deposit.

You have a very good chance to create a positive credit history if you do make your payments on time. 

3. You Can Get Self Lender Credit Builder Loans

You can also get the exact same sort of credit builder loan online as you could with a credit union if you go with Self Lender.

The process starts with Self Lender putting a loan in a Certificate of Deposit held by the bank in your name.

Doing so does not require a significant amount of money or credit, and you don’t have to put a lot of money upfront, either.

You can start off quite small if you like, with as little as $25 a month being available. 

You first select a monthly amount that you are going to pay into a Certificate of Deposit, also known as a CD.

You figure out the terms of your loan by selecting either a 12-month term or a 24-month term for it.

The loan’s rate is 14.92% annual percentage rate.

The amount of the loan gets deposited into a certificate of deposit bank account which does earn interest and is insured by the FDIC.

It is important to keep in mind that Self Lender will report your on-time payments to all three major credit bureaus in the United States: TransUnion, Experian, and Equifax.

As a result, this can increase your credit score because as previously mentioned, on-time payments of any kind for a sustained period of time will improve your credit score. 

4. Demonstrate A Level of Stability on Credit Reports

One of the main things that creditors want to see is plenty of evidence of stability on your credit report.

If there are any discrepancies about any of your personal information such as your name, current employer, date of birth, Social Security Number, and more, you should make sure to take care of those as quickly as possible.

This is one way that you can pad your credit score. It is likely that this stability will end up improving your credit score in the long run. 

5. Add Your Phone Number to All Credit Applications

Your telephone number could actually be a crucial factor for any sort of credit application.

A creditor might have difficulty verifying your identity without a phone number, and they might not be able to do it at all without a phone number.

A creditor is likely to hesitate to grant credit to someone if they are unable to verify their phone number.

As a result, it is a good idea for you to add your phone number any time you are applying for credit.

This helps creditors verify your identity and feel more comfortable about granting you credit. 

Want Flexibility? Try Online Credit Unions

beautiful dark skinned young female with cheerful expression holds smart phone credit card banks online makes shopping while sits against cafe interior

Money management has always been important, but today there seems to be a lot more options than there used to be.

Financial institutions operate both in-person and online.

Many options are only available online, and for people who don’t necessarily stay committed to a single place to live or work.

Taking care of your money mostly online is a great option.

Banks have done a lot with online banking over the years, but more and more credit unions are offering extensive online services.

Benefits of Credit Unions Vs. Banks

When you are choosing where to manage your money, you may ask whether a bank or a credit union is the best choice.

Profit Status

There are a lot of big high-profile banks that make it easy to find an ATM when you need it without having to pay a fee, but there are also some downsides of a traditional bank as well.

For one, banks are out to make a profit. This means they are more likely to charge higher interest on loans, and offer lower interest on savings and other investment accounts than a comparable credit union.

At the bank, your money works for the bank, at a credit union, you are the priority.

This means you can get better interest on loans, including student loans, they offer individualized debt consolidation, they offer resources to get educated about finances, so you get better with your money — rather than profiting from your errors with high fees. 

Credit Unions are non-profit institutions, and they take any money earned and give it back to the members.

People who manage money through a credit union are part of the credit union.

Credit union members also can often qualify for loans, or get better interest than those going through a bank.

How To Choose an Online Credit Union

Credit unions are not meant to be one size fits all, so it is important to put some thought into where you want to keep and manage your money to make sure you choose something that is a good fit.

When you become a credit union member, you become a co-owner of that institution, so it is important to pick something that you believe in.

Credit unions like for their members to have something in common, and some are more strict about your connection that others. Here are some things credit unions look for

The Industry you work in — Such as education, or another trade.

The company you work for — Many larger non-profits have their own credit union for employees

Where you live — Some credit unions are run by a certain city or state, or require that you reside in that state.

Your religion — Many strive to connection people of a similar faith.

Charitable Causes — Many credit unions are committed to advancing certain charities.

Family Connection — If a family member is a member, it is more likely you can be accepted as a member too, even if you don’t meet other requirements.

Look at Your Financial Goals

Before you join an online credit union, you should look at your financial goals.

Do you expect to buy or sell a home in the next few years? Do you need to save money so your child or grandchild can further their education?

Do you want to invest in a new business opportunity? Do you just want to earn a bit of interest with a checking or savings account?

What kind of minimum balance are you able to keep?

Knowing the answers to at least some of these questions can go a long way toward helping you choose the credit union that is best for you.

Be sure to look at plenty of options so you can weigh what works best for you.

If a specific credit union has attractive rates and features available, don’t be afraid to inquire, even if you don’t think it is an obvious fit.

Many credit unions have workarounds, or offer the option of donating to an important cause if they don’t otherwise seem like the obvious choice.

Consider How You Want to Access Your Money

There are some credit unions that may not have all the convenience of large banks, although many do have their own apps with plenty of bells and whistles.

Many offer debit cards, and will reimburse a certain amount of fees.

For some, it can be a benefit to actually work a bit harder to access money, because it may help some be more effective savers.

Best Online Credit Unions

Not sure where to start shopping for a new online credit union? Don’t worry, we can make some recommendations.

Here are some of our picks for the top online credit unions:

  • Connexus – good for high interest checking account
  • Alliant – good for high interest savings account and checking account
  • Golden 1 Credit Union – good for student checking account

Final Word

Just like banks, credit unions are federally insured, so your money is safe. You’ll also be given voting rights in many cases, which helps you steer the direction of the institution.

Overall, credit unions are more personal.

They are known for their neighborly approach. You invest in them and they invest in you.

You might start with just a savings or checking account, and find that they are there for you when you buy a home or start a business.

Even if you have had an account at the same bank for a long time, it is worth your while to cultivate a new relationship with an online credit union.

How To Join A Credit Union With Bad Credit

close up business man pointing signing agreement buying house bank manager concept

As you might expect, your credit history and credit score are particularly relevant when you are trying to become a member of a credit union.

However, you might not have the best credit score for whatever reason, but you still want to join a credit union.

Bad credit is not necessarily something that will completely prevent you from joining a credit union, though.

Here are some tips for you if you want to join a credit union even though your credit score isn’t very good at the time you want to join. 

1. Check Your Consumer Banking Report

Contrary to what some people may believe, your credit score is not actually the primary factor that is considered when you are trying to open a deposit account with a credit union in the United States.

Your consumer banking report is actually more important. Your consumer banking report shows the history of all the bank accounts that you have had, to some degree.

ChexSystems has this consumer banking report on you.

The consumer banking report from ChexSystems shows any past bank accounts that have outstanding debts, have been reported for a certain reason, or bank accounts that have been mishandled in some way. 

2. Recognize that Credit Unions Require Membership

Credit unions are different from banks in a number of ways.

One of these ways is that banks have customers while credit unions have members and this is because a credit union operates as a non-profit organization while a bank obviously does not.

A credit union’s earnings go back to the members of the credit union.

This may come in a number of different ways, ranging from higher deposit rates and lower account fees to lower borrowing rates.

It is also important to keep in mind that credit unions each have their own set of criteria to figure out if you are eligible for membership or not. 

These can vary from credit union to credit union.

However, in most cases, these requirements focus on whether you live, work, or worship in a certain area or not.

Additionally, your affiliation or lack of affiliation with particular organizations, groups, or companies might also affect whether you are eligible to join a certain credit union.

As you might have noticed, your credit score is usually not a part of the considerations when you are trying to join a credit union.

This is part of how you can join a credit union with bad credit. 

3. Consider Second Chance Accounts

Even if your ChexSystems report is not ideal, that does not mean you cannot get an account with a credit union.

Second chance accounts are specifically made for individuals that do not have the most positive history when it comes to their past bank accounts.

Most of the time, second chance accounts are available in the form of some kind of checking account.

However, second chance accounts are certainly different from more traditional checking accounts in a few ways.

A second chance account will most likely include a monthly fee that cannot be waived, which is often not the case with traditional checking accounts. 

Another important difference is that you typically cannot write paper checks using second chance accounts.

You still may have the ability to use your second chance account for both transfers and online bill payments.

Despite this, you cannot give someone a check as payment if you’re using a second chance account.

The reason for this is simply that this decreases the chance that you will overdraft your account and get a negative balance.

Thankfully, quite a few credit unions offer you second chance accounts. Second chance accounts help you improve your credit, so you can use all of a credit union’s services once you join it. 

4. Credit Unions Do Care About Your Bad Credit Sometimes

As previously stated, bad credit does not prevent you from joining a credit union.

However, you might find it more difficult to take advantage of some of the services that the credit union offers if your credit score is poor.

Bad credit does matter if you apply for a credit line or a loan with a credit union.

Bad credit can decrease your chances of qualifying for various types of loans such as credit cards, personal loans, auto loans, mortgages, home equity loans, and lines of credit. 

In general, though, credit unions are often more willing to work with you to assist you in getting a loan that you need if your credit isn’t great compared to banks. 

5. Secured Loans Can Prove Useful

If you are concerned about your bad credit affecting your ability to join a credit union or get approved for loans, secured loans can help you.

Secured loans are loans that utilize the money you deposit in them as collateral. You don’t have to worry about bad credit affecting your ability to get a secured loan.

This is because secured loans are much less influenced by your credit score or even your income since your own deposit is used as collateral to secure the loan.

Secured loans are also known as credit builder loans. 

Secured loans are called this because they are a good way for you to improve your credit as long as you ensure that you are making your payments on time.

You should know that your credit limit may be the same as the amount of collateral you have and interest rates on secured loans are usually quite low.

After you have used secured loans to rebuild your credit, you now have a better chance of getting approved for various kinds of loans once you have joined a credit union. 

Final Word

If you are someone who meets the membership requirements for joining a particular credit union, then you shouldn’t have to worry too much about your bad credit getting in the way.

Bad credit might make it harder for you to get approved for loans, though. Quite a few credit unions will work hard to give you the financial services and products that you need even if you do have bad credit. 

Are Credit Unions Good For Bad Credit?

people withdraw money using machine

It’s no secret; having bad credit is no good. Bad credit can prevent you from doing everything from renting an apartment to starting a business.

While building or rebuilding your credit obviously takes time, there are various tools that can help you propel your finances forward. For instance, credit unions are one resource that is often used by people with bad credit.

With that in mind, the following is a look at why that is. 

Why and How Credit Unions Help People with Bad Credit

If you are someone who has bad credit, you may be wondering why working with a credit union is more beneficial than working with a bank.

Well, there are a few reasons for this. Some of which are the following:

Nonprofit Institutions

One of the top reasons people with bad credit should use credit unions is that they are nonprofit organizations.

So, unlike major banks, which charge for virtually everything, credit unions do not need to do this, as they are not for profit, to begin with.

Therefore, the products and services being offered are there for the good of the members rather than the good of the organization. This makes it ideal for anyone with bad credit. 

Working with People who Care

One major reason you should work with a credit union to fix your bad credit is that credit unions actually care and want to help.

Unlike banks, which have the sole goal of making money, credit unions are operated by members of the community, for members of the community.

Therefore, credit unions often offer many services and products that are geared towards helping people build or rebuild their credit.

This makes them ideal for people with bad credit who are trying to rebuild. 

Small Loans

Yet another way credit unions help people with bad credit is by offering small loans. They are also typically more lenient in terms of the parameters for approving these loans. 

Small loans can not only help you pay off bills and build your credit that way but repaying a loan is a great way to boost your credit.

This is because consistently making payments on a loan shows that you are financially reliable and responsible.

So, if you can get a small loan and commit to making the payments, you will see a moderate increase in your credit score over the months. 

Lower Fees

Another reason people with bad credit should work with credit unions is that they carry lower fees.

No matter if you are doing an ATM transaction or getting a loan, the fees you have to pay at a credit union will almost always be lower than the fees associated with working with a major bank.

Moreover, they also typically have a much lower minimum requirement to open and maintain checking and savings accounts and rarely charge fees for those who fall under a certain threshold.

Since those who have bad credit are also often experiencing financial issues in general, working with a credit union is a great way to save and pay bills without worrying about the astronomical fees. 

More Personalized Customer Service

Working with credit unions also gives you access to more personalized services.

Not only are credit unions known for being smaller and more intimate, but they also allow members to receive more personalized care.

This means they take the time to meet with members, discuss their unique financial needs and issues, and recommend the best services and products to help them get ahead.

This is a vastly different experience from what you will get when working with most banks. 

Voting Rights

Additionally, working with a credit union also gives you a voice.

Unlike working with major banks, joining a credit union affords you the right to vote on major issues affecting the bank.

This means that you can potentially vote for or against new policies that may work in your favor or against you.

This is ideal for people with bad credit as they are often the least considered when it comes to making major decisions in financial sectors. 

Insured Deposits

Lastly, federal credit unions, in particular, are insured by the National Credit Union Administration.

With the help of the National Credit Union Share Insurance Fund, many credit unions are backed by the U.S. government, which covers individual deposits of up to $250,000.

Therefore, you can save your money and invest in financial products with the peace of mind of knowing that your money is backed by the U.S. government. 

Final Word

Overall, there are plenty of reasons why credit unions are great for people with bad credit.

Not only are they nonprofit institutions that help by offering small loans and other products and resources designed to help individuals create financial freedom, but they also show compassion for individuals, have governmental protections, and lower fees.

Moreover, they provide each customer with a level of customer service that is almost unheard of when it comes to dealing with major banks.

Therefore, if you are trying to build your credit and need help doing so, joining a credit union may be the perfect way to do so.  

Credit Cards That Are Easy To Get Approved For (2023)

approved thumbs up

We all know that it is not necessarily easy to get approved for a certain credit card.

Some credit cards have specific credit requirements that you need to meet in order to get them.

Others require a certain amount of credit history before you can get approved.

However, not all credit cards are so difficult to get.

Here are eight credit cards that are easy for you to get approved for, in no particular order. 

1. Surge MasterCard

It is easy to get approved for the Surge MasterCard. One of the reasons for this is the fact that the Surge MasterCard is specifically designed to help you rebuild your credit.

It does so by reporting your payments to all the major credit bureaus.

All you have to do is continue to make your monthly payments on time, and it will help you improve your credit score.

Since this card is made to help you rebuild your credit, you do not have to worry about getting approved if you have fair or bad credit. 

2. Milestone MasterCard

Another card that offers you easy approval is the Milestone MasterCard.

You can get approved for this credit card even if your credit score isn’t very good.

It is important to keep in mind that this credit card also has a fairly low credit limit of only $300 minus the annual fee.

The annual fee for this credit card ranges from $35-99, so the credit limit is really less than $300.

You can increase your credit score with this card as well if you make your payments on time since the account history is reported to the three major credit bureaus in the United States.

3. Discover It Student Cash Back

College students may need a credit card that is easy to get approved for since they may not have too much credit history in the first place.

All you need in order to qualify for this credit card is to be at least 18 years old, a college student, and enrolled in a two-year or four-year college or university.

There is no annual fee associated with this credit card. You only need fair credit to get approved for this, but you can get accepted if you are just starting out your credit history, too.

You do have to authorize Discover to contact you via text or phone to get approved for this card, however. 

4. Secured Mastercard from Capital One

The Secured Mastercard from Capital One is an excellent choice if you are looking for a credit card that is easy to get approved for if you have no credit history.

You do have to provide a refundable security deposit of $49,$99, or $200 in order to qualify for this card.

This serves as collateral, so this credit card can have a $200 credit limit.

You can deposit more money initially, up to $1,000, if you want to have a higher credit limit on this credit card.

There is no annual fee for this card. You can get approved for this credit card if you have bad or limited credit. 

5. Discover It Secured Credit Card

To qualify for the Discover It Secured Credit Card, you have to deposit cash collateral with Discover Bank that is an amount equal to the credit line for the credit card.

You have to deposit at least $200. You also have to be a U.S. resident and at least 18 years old in order to qualify for this card.

Additionally, you have to authorize Discover to perform a hard pull of your credit reports and allow them to contact your bank, employer, and others.

You must also let Discover reach out to you via phone or text.

This card has no annual fee, and you can get this credit card if you’re new to credit or trying to rebuild your credit score. 

6. OpenSky Secured Visa Credit Card

It is very easy to get approved for the OpenSky Secured Visa Credit Card. You do not even have to go through a credit card to get approved for this card.

Your security deposit is the exact same amount as your credit limit. This can range from a minimum of $200 to a maximum amount of $3,000.

This card reports your payments to the three major credit bureaus to help you build your credit. The annual fee for this credit card is $35.

You have to be a U.S. citizen, at least 18 years old, and you must have a Social Security Number or an Individual Taxpayer Identification number in order to qualify.

You also have to have sufficient monthly income to afford all the expenses of using this card.

7. NetSpend Visa Credit Card

You don’t need a credit check or even a bank account in order to get approved for this credit card. In fact, you are not even required to maintain a minimum balance with this card.

You can buy the card for $9.95 at a retail location. Since this is a prepaid card, you can only spend the amount that is on the card and nothing more.

As a result, you don’t have to worry about overdraft fees.

You have to be 18 years old or older, have the ability to prove your identity, and be able to lawfully enter into contracts in your state of residence.

The annual fee for this card is up to $9.95 monthly. 

8. Petal 2 Visa Credit Card

This is an easy credit card to get approved for because you do not even need to have any credit history whatsoever to get it.

You do not have to pay an annual fee for this card.

You also get 1-1.5% cashback on purchases.

This credit card reports your account activity to all three major credit bureaus, so you can start off with good credit if you make your payments on time.