Last updated on January 14th, 2021
The holiday season means the annual time for gift-giving has arrived. Many consumers enjoy the holiday season as the perfect time to maximize their credit card rewards and boost their credit scores. But what happens if you have no credit history? Or if your credit score is bad/poor? Are there any shopping credit cards for bad credit scores? The answer is “yes” – and here are two great options to consider:
What Is the Most Important Thing to Look for in a Credit Card for Bad Credit – or No Credit Score?
Having a bad credit score – or no credit history at all – makes building a good credit score complicated. Because both FICO and VantageScore base their models on payment history, choosing a credit card that regularly reports to all the major credit bureaus is essential.
Many store credit cards report to some credit bureaus, but not all. Others might not regularly report, meaning a history of on-time payments can’t boost your credit score quickly. Before applying for a credit card for bad credit, make sure to check reviews to ensure the issuer reports your payment history regularly.
What Are the Best Shopping Credit Cards for Poor Credit?
Just because you have subprime (fair) or deep subprime (bar or none) credit, it doesn’t mean you can’t get a credit card for taking care of your online shopping needs. While options are more limited than in other circumstances, there are good credit card offers in the form of catalog cards.
Catalog cards are a unique type of retail payment card. These cards provide a line of unsecured credit at an individual online store or online catalog. They are not traditional credit cards because they are not issued by a bank like Chase, Bank of America, or Capital One.
The Group One Platinum is one of the most accessible cards to get for those with bad credit scores. The Group One card offers a $750 unsecured credit line, meaning successful applicants don’t have to worry about the security deposit requirement that comes with a secured credit card.
The Group One card is like other catalog credit cards in that it offers a line of credit that holders can use at its online store, the Horizon Outlet. That online shopping portal (www.horizonoutlet.com) provides a huge selection of products, including men’s, women’s, and children’s clothing, home goods, toys, jewelry, sporting goods, and more.
The Group One Platinum issuer, Horizon Card Services, reports to a major credit bureau regularly, which can help users raise their credit score. And, since catalog cards are like charge cards, they don’t impact a user’s credit utilization rate. These two factors make catalog cards like the Group One excellent for establishing a good credit history and boosting your credit score.
- $500 credit limit
- No employment or credit check to apply
- Reports activity to major credit bureau
- Fast and easy application
- Late Payment Penalty Fee: $20
- Return Payment Penalty Fee: $25
As with other products from Horizon Card Services, the Group One Platinum Card boasts:
- No credit check needed
- No employment check required
- Quick approval
- Instant $750 credit limit
- Regular reporting to a major credit bureau
- 0% APR on purchases
Other Options to Consider
The Fingerhut Card – issued by WebBank – offers a credit line towards online purchases. The Fingerhut online shopping store offers products from hundreds of leading brands. Examples of Fingerhut brands include Teleflora, Panasonic, and more. Unlike Group One, however, the initial credit limit with the Fingerhut card is just $250. Horizon Outlet cards grant double that initial limit.
For those who want to take the longer route to credit repair, Fingerhut may be the better option. Access to credit limit increases means the card offers long-term value – but less value than the Group One at the start. The first few credit increases through Fingerhut will only reach the same limit Group One gives you right off the bat. This means the Group One Card is your best bet for shopping.
Related Article: Fingerhut vs. Horizon Gold Card: Which Is Best for Bad Credit?
Featured photo by Shopify Partners / Burst