In today’s economy, keeping a positive financial outlook can get difficult. No matter what you do, you always have bills that are due every month! As an alternative, credit cards offer a great solution to pay for products purchased and services rendered at a later date. A credit card frees up the much-needed cash to meet current debt obligations that take precedence over other purchases and your personal needs.

However, getting approved for a credit card with a bad credit history will be challenging.

• Low upfront fees
  Bad credit is the result of spending more than you can afford and being unable to pay your dues on time. So, choose a credit card that does not impose high annual or recurring fees to rebuild bad credit. Secured Visa or Mastercard credit lines are your best bet when it comes to low fees for services.
• Pre-qualification checks
  There are a few banks that do not enforce checks to approve your credit application. It will be easier to get a credit card with these institutions to help rebuild your credit history. You can also catch up on late payments to increase the odds of getting preapproved even with bad credit.
• Credit reporting
  Banks periodically update your credit history with the top credit rating agencies in the country. Always apply for a credit card with banks that report to all three agencies including Equifax, Experian, and TransUnion. Periodic updates will help rebuild your bad credit faster and it is always handy to have an updated credit report to secure additional funding if the need arises.

Banks often recommend secured credit cards with low fees and better approval odds. In rare cases where you require emergency funds but are unable to secure a loan through traditional means, some financial institutions offer unsecured credit cards for bad credit. These cards are expensive but provide you with the much-needed emergency funds with no security deposit necessary for the loan.

Visa and Mastercard are the most preferred card networks. Here are seven of the best credit cards that can help rebuild your credit history.

Capital One® Secured Mastercard®
If your credit history is heavily damaged, Capital One® offers a credit card that can help you rebuild the same. There is no annual fee and you can apply for the credit line with a poor credit score ranging from 350 to 629. Additionally, you must have a savings or checking account to be eligible for a higher credit line or favorable APR. Capital One® Secured Mastercard® offers a variable APR of 26.99% and the interest rate will vary depending on your credit score. The credit card is globally accepted, and your account can be managed online with Capital One’s mobile application. In a nutshell, the card is one of the top picks for a low deposit and comes with favorable repayment options.

OpenSky® Secured Visa® Credit Card
This is a great no credit check credit card alternative to using traditional banking services. If you meet the income standards set forth by the banking authority, you will be eligible for a credit card even with severely damaged credit history. The bank prefers applicants with a credit score rating between 350 and 689 which is poor to average. Unlike Capital One®, there is no mandatory requirement to have a savings or checking account as deposit payments can be made by wire transfer, check, or even a money order. OpenSky® charges $35 annually for the card and offers a variable APR of 19.64% allowing you to gradually rebuild your credit.

Discover it® Secured
This is one of the best credit cards when it comes to availing rewards and upgrades even with a bad credit rating. Discover it® offers a credit card with 0$ annual fee for applicants having a poor credit score ranging from 350 to 629. Additionally, Discover it® offers an introductory APR of just 10.99% on all balance transfers for the first six months. A variable APR of 25.24% will be applicable thereafter on purchases. The credit card also offers 2% cashback on food and gas purchases and 1% cashback on other expenses. Moreover, the bank will match your cashback earnings for the first year and you receive a free FICO credit scorecard. When it comes to reward cards, Discover it® is the preferred choice as their rewards system is better than some unsecured credit cards available for good credit. Once you maintain a favorable balance and manage to pay off your bills for eight consecutive months, your card will be eligible for an upgrade.

DCU Visa® Platinum Secured Credit card
Digital Federal Credit Union offers a less expensive way to carry your balance in case you are unable to meet your minimum dues for the month owing to bad credit. The bank does not charge an annual fee and offers a variable APR of just 13.75% for applicants with a credit rating between 350 and 850. The low interest rate and fees help you rebuild your credit easily. There is a mandatory requirement of being a member of the Digital Federal Credit Union that is easy to apply and get approved. However, the prerequisite criteria must be met to secure the low interest and favorable APR credit card. Additionally, you receive an overdraft facility on your checking account along with benefits for insurance, warranty, car rental, and travel. You can also borrow against your DCU savings account without the bad credit affecting your borrowable funds.

Credit Builder Secured Visa® Credit Card
It is one of the credit cards that offers a flexible line of credit for applicants. You can increase your credit line to keep your credit utilization low and have greater flexibility to pay dues. The process is simple as you add more money to your deposits and earn interest on top of it. The card, however, does have an annual fee of $25 and a variable APR of 23.24% that is slightly on the higher side. Applicants with a credit rating between 350 and 689 can apply for the line of credit. In a nutshell, a custom credit line, accrued interest on savings, automatic reporting, upgrades and the option to choose your payment date makes Credit Builder Secured Visa® credit card one of the best for bad credit.

Milestone® Gold Mastercard®
Genesis FS card services issue credit cards that charge a fee in the range of $35 and $99 annually. It is easy to prequalify for the card with free online account access. The card offers an ongoing APR of 23.90% with a penalty and cash advance APR of 29.90% for purchases. Some of the major highlights of Milestone® Gold Mastercard® include $0 cash advance fees for the first year, a 1% foreign transaction fee, and the card does not require a security deposit. Backed up by MasterCard, the credit line is globally accepted.

While you do have the option of using your credit card to gradually rebuild your credit rating, you must also try and find creative ways to pay off your debt. Once you get your finances in order, reinvesting any surplus will reduce the debt to be paid off without any interest or additional loan. You will find many ways to make money online that doesn’t take too much of your time to have some surplus cash in time of need.