Consumer behavior saw a change in the preferred payment method for the first time since 2016. Debit cards were the most used, but 2016 marked the year were American consumers preferred credit cards over debit cards. Credit cards are preferred over debit cards for the following reasons:

• Safety because it’s the bank which pays the money if at all there’s an error or fraud occurs.
• Credit card customers are offered plenty of rewards from the bank issuing them.
• Helps in building credit rating and many more.
• Banks try to sell them more since its profitable compared to debit cards.
• Any American with a good credit score can avail a credit card with minimum hassle. Even if it’s the other way, there are credit cards that can help them build a decent credit history.

Finding the right credit card and using it responsibly is the key to building up the credit history. There are two types of credit cards.

Secured credit cards: Secured cards are those were the user deposits a cash deposit and availed the card. Secured credit card reduces the risk to the issuer as they have the deposit at their disposal in case the user fails to make the payment. Secured credit cards are hence the best for users with bad or limited credit history. Responsible usage of secured credit cards can help build up a good credit score thus qualifying the user for better credit cards.

Unsecured credit cards: Unsecured cards are the usual credit cards were the issuer trusts the user based on his credit history and expects him to make the payment. There is no security deposit when it comes to unsecured credit cards. However, the user needs to have some established credit to qualify for an unsecured credit card. Unsecured credit cards are a little hard to qualify, and users with bad credit could end up paying higher interests and additional fees.

Following are some of the best credit cards for bad credit:

Credit One Bank Unsecured Platinum Visa: Credit one bank offers one of the best credit cards for bad credit – it is one of the best-unsecured cards for building credit scores. Users can check whether they are pre-qualified without hurting their credit score. It’s an unsecured card, so no security deposit. With a minimal fee, provision for increasing the credit limit is one good feature. Not many cards offer 1% cash back on eligible purchases like gas, groceries, and services like internet, satellite TV. Since Credit One reports to all the three major bureaus every month, it’s a great card to keep the credit scores up to date. The card has an annual fee of $99, so may not be the best card for long-term. Credit utilization rate can be kept low by keeping an eye on balance before going for a big purchase.

Milestone Gold MasterCard: Milestone is one great credit card for users with severely damaged credit scores. Users who have had a history of bankruptcy can also avail this card with minimum hassle. Like Credit one, Milestone also has a lenient and fast pre-qualification process was the credit score doesn’t take a hit. Milestone cards are a good option to build a good credit score, but the user has to ensure full payment every month to avoid high-interest penalty. Thus, it can be thought of as one of the best credit cards for bad credit.

Indigo Platinum Master Card: Indigo platinum cards may not have fancy offers to attract customers, but it does offer a sensible option of building a decent credit score with minimum hassle. The issuer can give a blind eye to any previous history of bad credit or even bankruptcy. The card has a mobile-friendly online access. It is best to make the payments on time to avoid a 29.9% penalty APR.

Discover it Secured Card – No annual fee: Consider Discover it if the user is looking for a secured credit card with a refundable security deposit of $200 with no annual fee. They do offer cash back rewards making it a favorite among Americans. Purchases at restaurants and gas stations can earn up to 2% cash back making it very popular for daily usage, thereby making it one of the best credit cards even if you have bad credit. Discover provides a free FICO credit score on monthly statements.

SDFCU Savings Secured Visa Platinum Card: An EMV chip-enabled credit card enabling it to be used overseas in countries that are chip based. SDFCU doesn’t have an annual fee and reports to all the three credit bureaus. This card has the lowest APR which is a boon for users trying to build their credit score. The only drawback is it can’t be upgraded to unsecured forcing the user to cancel it to claim the deposit.

In most cases, an ideal credit card is the one with low fees and potential for rewards. It is up to the user to analyze the situation and avail a credit card that suits him the best. Making payments on time and staying within the credit limit can help build a decent credit score g