Anyone with bad credit who has shopped around for a credit card can tell you that finding one without an annual fee is like locating the proverbial needle in a haystack. Annual fees are another burden that banks tack on to credit card agreements to seemingly further punish people with bad credit and to hedge the banks’ losses.
An extended search on the Internet does yield a few cards, however, that promise no annual fee and are available even to people with bad credit. With no further adieu, here are some examples of a credit card with no annual fee, a truly rare species in the banking world:
Platinum Zero Secured Visa Credit Card from Applied Bank
There are a couple of tricks with this card; for starters, it is a secured card, so it will be good only for what you are able to deposit to it. Secondly, although it does not charge an annual fee, it does gash its users with a $9.95 monthly fee. Since that is not technically an annual fee, it is included in this category as a credit card for bad credit with no annual fee. If you do keep this card for 12 months, you will have practically paid a nearly $120 annual fee when all is said and done.
Onto better deals…
The Navy Federal ‘n Rewards Secured Card
This is a pretty good choice for people with bad credit. You will need a military connection of some sort to hook on with Navy Federal Credit Union. The good news about this card is that it truly has no annual fee, and its APR can be as low as 8.99%. In addition, you earn a point for every dollar that you spend, points that can go towards merchandise or gift cards that you can redeem.
The card also reports to all three credit bureaus, and after 12 months of wise use, it will be switched to an unsecured card. Don’t assume that you have no military ties; search the family tree to get in on this deal. It is a dandy!
Capital One Cash Rewards for Newcomers
The final credit card for bad credit with no annual fee is aimed at people who are new to the U.S., but others can apply for this card and be approved. The APR is a whopping 24.9%, but there’s no annual fee, and it gives you 2% back on travel purchases and 1% cash back on all other purchases, not a bad deal.
As you accumulate that cash, you can take it out at any time in the form of an account credit or check. The card reports to the three major credit bureaus as well. This is a great card for someone who will be careful to keep a low rotating balance. If you are disciplined enough to keep a zero balance, you can actually make money off this card, a truly rare opportunity.