How to Choose Credit Cards for Bad Credit in Phoenix

If you’ve had a hard time establishing or maintaining good credit, chances are you’ve also had a hard time finding credit cards for bad credit in Phoenix.

Because an individual’s credit history is the largest factor taken into account by credit card companies, a negative credit history will ultimately prevent you from rebuilding your credit with traditional credit cards.

In order to improve your credit standing and trustworthiness as a cardholder, think about applying for one of these types of Phoenix credit cards, each of which boasts features designed to help individuals turn their negative credit standing positive.

1. Secured Phoenix Credit Cards With Annual Fees

Most secured Phoenix credit cards will require cardholders to make a deposit prior to approval. This initial upfront fee will be forfeited if a cardholder with bad credit history reenacts the past and falls behind on payments.

Capital One Secured MasterCard has one of the lowest annual fees around for secured Phoenix credit cards. At just $29, this an affordable option for individuals willing to pay a little to improve their credit standing in the long run.

2. High Interest Rates For Increasing Trustworthiness

Often, Phoenix credit cards will have exceptionally high interest rates attached to them for cardholders with bad credit. These high interest rates are designed to test the trustworthiness of cardholders who have a damaging credit history, as lenders are taking them on as a big financial risk.

High interest rates can range from 11.99% APR to 22.99% APR, so be prepared to pay a significant amount of interest if you don’t pay off your secured Phoenix credit cards in full.

First Progress Platinum Select MasterCard Secured Credit Card has a variable interest rate of 14.99% APR as well as an annual fee of $39, which might be manageable for cardholders looking to rebuild credit without feeling held back by high interest or annual fees down the line.

3. Low-to-Moderate Spending Limits

Many credit cards for bad credit in Phoenix will have credit limits designed to accommodate only low-to-moderate spending by a cardholder. Furthermore, many financial institutions will require a deposit that matches the spending limit set, so if your credit limit is $300, you will have already paid that prior to using your credit card.

Paying your monthly credit limit upfront is mostly an insurance tactic or security deposit on the lender’s end in case you decide not to pay off your credit card limit for that month. Keep in mind: The higher the spending limit, the higher the annual fees for secured Phoenix credit cards.

First Progress Platinum Elite MasterCard Secured Credit Card secures its credit line with a full-refundable deposit ranging from $300 to $2,000 depending on what you want your balance limit to be. Once you pay off your balance, you can receive your deposit back at any time.