How we found the best bad credit credit cards of 2021
There are all kinds of bad credit credit cards available to consumers today, but not all are created equal. Some cards have higher than average interest rates and many charge an annual fee in addition to the application fee. Here are all the factors we took into account when putting together our list of the best credit cards this year:
Monthly credit report
The most important factor we took into account for cards in this category was the monthly credit report. For a bad credit credit card to work in your favor, all of your monthly payments and your balance details must be reported to all three credit bureaus each month. When this happens, you have the best chance of improving your score over time when used responsibly.
While rewards might not be the most important factor you look for in a bad credit credit card, we’ve still prioritized cards in this category that offer cash back. After all, earning 1% or more on all your purchases can help you rack up rewards fast. Plus, cash back can help offset annual fees and security deposits you’ve had to make. Keep in mind, however, that rewards are only useful if you pay your credit card bill in full each month and never have a balance.