Credit Cards for 400 Score with Secured and Unsecured Options

If you have a 400 credit score, you're likely looking for credit cards that can help you build credit or provide access to cash. Secured credit cards are a great option for those with poor or limited credit, as they require a security deposit to open the account.

Secured credit cards are available from various issuers, including Discover and Capital One, with some offering rewards and benefits like cash back and travel insurance. However, they often come with higher fees and lower credit limits than unsecured cards.

To qualify for an unsecured credit card with a 400 credit score, you'll need to meet specific requirements, such as having a steady income, making on-time payments, and keeping credit utilization low. The best unsecured credit cards for a 400 credit score often have lower credit limits and higher interest rates than those available to consumers with better credit.

If you have a 400 credit score, it's considered bad credit, and you may struggle to get approved for a regular credit card. You can get a credit card with a 400 credit score by applying for a secured credit card or an unsecured credit card for bad credit.

Secured credit cards are a good option because they require a security deposit but have lenient credit score requirements, making them accessible even if you have bad credit. Some secured credit cards don't even check an applicant's credit history, which means there's no hard pull to hurt your credit score further.

The OpenSky Plus Secured Visa Credit Card is a good choice because it doesn't require a credit check and has an annual fee of $0. This credit card requires a security deposit of at least $300 to open the account.

You can also consider the First Progress Platinum Select Mastercard Secured Credit Card, which rewards you with cash back on payments, and the Applied Bank Secured Visa Gold Preferred Credit Card, which has a low APR.

Another option is the Secured Chime Credit Builder Visa Credit Card, which has no annual fee and allows you to track your credit score for free.

Debt management is a crucial aspect of credit card usage, especially for those with a 400 credit score. You can seek help from non-profit credit counseling agencies or debt management programs that can assist with budgeting and negotiating with creditors.

These programs can help you find a long-term solution with your creditors based on your budget, making payments more sustainable. They can also negotiate with creditors on your behalf to create a new payment plan.

To get started, contact your attorney general's office or the Consumer Financial Protection Bureau, and check Consumer.gov for local options.

Here are some key points to consider:

You can get back on track with your finances by seeking help from non-profit credit counseling agencies or debt management programs. These programs can help you find a long term solution with your creditors based on your budget.

A debt management program can negotiate with creditors on your behalf to create a new payment plan. Reduced payments and interest rates can make payments more sustainable.

Contacting your attorney general's office or the Consumer Financial Protection Bureau can provide you with local options for credit counseling. You can also check Consumer.gov for a list of local options.

If your credit card company lowers your credit limit, it will negatively impact your credit utilization ratio, a major piece of your credit score.

A lower credit limit means your total credit used will increase, which can hurt your credit score. This is because your credit utilization ratio is the sum of your balances compared to your credit limits.

Closing your account will decrease your average credit age, another important credit score component. Your average credit age is the length of all your accounts divided by the total number of accounts.

Having a lower credit limit or closed account can make it harder to manage your debt and reduce your account balance.

If you're looking to rebuild your credit, a secured credit card can be a great option. The U.S. Bank Cash+ Visa Secured Card has a minimum opening deposit of $300, but it's a great choice because you won't pay any annual fee.

You can choose from a variety of cash-back categories, earning 5% cash back on the first $2,000 in combined purchases each quarter in two categories you choose, 2% cash back in one everyday category, and 1% cash back on all other eligible purchases.

One benefit of the Capital One Platinum Secured Credit Card is that you can put down a refundable security deposit starting at $49 to get a $200 initial credit line. This can be a good option if you're not sure how much you'll be able to pay.

Another advantage of the Capital One Platinum Secured Credit Card is that you could earn back your security deposit as a statement credit when you use your card responsibly. This is a great incentive to make payments on time and build your credit.

Here are some key features of the two secured credit cards:

Both cards have a variable APR, which means it can change over time. However, the Capital One Platinum Secured Credit Card has a slightly higher APR than the U.S. Bank Cash+ Visa Secured Card.

Unsecured credit cards are a great option for people with a 400 credit score, as they don't require an upfront security deposit. These cards use your credit history, income, and other financial information to determine your credit limit.

Most credit cards are unsecured, including travel and business credit cards. You can boost your credit score with an unsecured credit card if you pay your monthly bill on time and in full. If you don't pay your credit card balance in full, you'll be charged interest on any remaining balance.

The Petal 2 "Cash Back, No Fees" Visa Credit Card is a good example of an unsecured credit card, with no annual fee, no late payment fee, and no foreign transaction fees. It offers 1% cash back on eligible purchases right away, and up to 1.5% cash back after making 12 on-time monthly payments.

Here are some benefits of unsecured credit cards for people with a 400 credit score:

The Prosper Card is another affordable option for rebuilding credit without a security deposit. It has a credit limit of $500 to $3,000 and offers automatic reviews for credit line increases.

The Discover it Secured Credit Card has a 3% intro balance transfer fee, with a maximum fee of 5% on future balance transfers. This fee is a consideration to keep in mind if you plan to transfer existing balances.

One notable feature of this card is its lack of annual fee and foreign transaction fees. This makes it a great option for those who want to avoid extra charges on their purchases.

The card also offers a 2% Cashback Bonus on up to $1,000 in combined purchases each quarter at gas stations and restaurants, then 1% cash back. All other purchases earn 1% cash back.

The balance transfer fee can be a significant cost for credit card users. It's 3% intro balance transfer fee, with a maximum fee of 5% on future balance transfers, as seen with the Discover it Secured Credit Card.

Some credit cards offer a one-time fee for transferring a balance, which can be a good option if you need to consolidate debt. However, be aware that future balance transfers may incur a higher fee.

The Discover it Secured Credit Card, in particular, has a relatively low balance transfer fee compared to other credit cards.

Credit card features and fees can be complex, but let's break it down. Here are some key pros and cons to consider.

Regular reviews for credit line increases are a great perk, allowing you to take advantage of higher credit limits when your credit score improves.

Cash back for common expenses is another attractive feature, helping you earn rewards on your everyday purchases.

However, the most rewarding unsecured credit cards typically require high credit scores, making it difficult to qualify if your credit history is limited.

Unsecured credit card interest rates are higher than other types of consumer debt, such as personal loans or secured debt, like a home equity loan.

If you're building credit with a 400 score, it's essential to find a credit card that offers rewards and doesn't have too many requirements. The Discover it Secured Credit Card is one of the best options for earning rewards while you build your credit.

This card is a great choice because it reports to all three major credit bureaus, which means it can help you build a positive credit history. It also offers cashback rewards on your purchases, which can be a nice bonus.

To qualify for this card, you'll need to have a 400 credit score or higher, and you'll need to make a security deposit, which will be your credit limit. However, the deposit is refundable when you close the account or upgrade to an unsecured card.

The Discover it Secured Credit Card has no annual fee, which is a major advantage for those with lower credit scores. This means you can use the card without worrying about extra costs.

A credit score of 400 is considered poor credit, which means your choices are limited and often come with high APRs and fees.

Secured cards are a good option in this range, requiring a deposit with the issuing bank and reporting to the three credit bureaus.

To repair a bad credit score, you need to practice good financial management, which includes making on-time payments and not exceeding your credit limit.

Using a credit card correctly can help improve your credit report over time, but be aware that these cards often come with lower credit limits and higher interest rates.

A credit card for bad credit is specifically designed for people who want to improve their credit score, which can be helpful if you want to get a new loan, credit card, or a mortgage.

These cards often come with lower credit limits and higher interest rates due to the increased risk the bank is taking in lending.

Secured cards may be a good option if your score is low, where you make a deposit with the issuing bank.

A secured card can report to the three credit bureaus, helping to build your credit score over time.

Using your credit card correctly can help to improve your credit report by making sure you're not missing payments and not going over your agreed credit limit.

If you manage your credit card well, your credit score can improve over time.

If you're not happy with a credit card charge, you can dispute it with the issuer. The editorial content on this page, including the pros and cons of disputing charges, is not provided by any credit card issuer.

Disputing charges can be a straightforward process, but it's essential to act quickly, as most credit card issuers have a time limit for disputing charges. The editorial content on this page is not provided by any credit card issuer.

You'll need to provide evidence to support your dispute, such as receipts or witness statements. Any opinions, analysis, reviews, or recommendations expressed here are the author’s alone, not those of any credit card issuer.

The credit card issuer will then investigate the dispute and may contact you for more information. The editorial content on this page (including, but not limited to, Pros and Cons) is not provided by any credit card issuer.

If the dispute is found in your favor, the credit card issuer will reverse the charge. Any opinions, analysis, reviews, or recommendations expressed here are the author’s alone, not those of any credit card issuer.

Improving your credit score takes time and effort, and it's essential to be patient and consistent in your approach. It can take several years to build your credit from 400 to 700.

To start improving your credit score, you need to address the negative marks dragging it down. You can use WalletHub's free credit score simulator to find out how specific actions will affect your score and how long it will take to reach your credit score goal.

It's crucial to understand that the recovery time for negative marks on your credit report varies. Average recovery time for negative marks can take several years to disappear from your credit report.

To improve your credit score, you need to take specific steps to address the negative marks. This can include paying off debts, disputing errors on your credit report, and making on-time payments.

Paying off debts is a significant step in improving your credit score. The exact timing depends on which types of debts you have and the amount owed.

Making on-time payments is also crucial in improving your credit score. Consistently paying your bills on time will help to improve your credit score over time.

Consistency is key when it comes to improving your credit score. You need to be consistent in making on-time payments and addressing the negative marks on your credit report.