Best Credit Card For Single Mom

Being a single mother is hard and you have to perform a lot of challenging tasks on your own. Getting extra help in the form of a credit card can help you especially when your finances are tight. However, you need to identify the best credit cards for single moms and research thoroughly before making an informed decision. Choosing the right credit card depends on your financial circumstances, lifestyle, and unique needs. The type of credit card that you should go for also depends on how frequently you use the cards. Single mothers have to perform the tough job of raising kids alone while juggling all the household and parental responsibilities. The right cards will help you to make things easier and less stressful for you. The best credit cards for single moms with bad credit are the ones that fit their spending patterns and lifestyle. This guide will help you to learn about single mom credit card debt bailout and what are the different types of credit cards that you can qualify for even if you have bad credit.

Are There Credit Cards For Single Moms With Bad Credit?

One of the easiest credit cards for single moms to get approved for is a secured card especially when they have no credit or bad credit. These credit cards require a refundable security deposit which protects the interest of the issuer. The annual fees of a secured credit card are as low as $0 and can give you a reward of 1% or even higher. You are required to compare the rates, rewards, and fees of every credit card company which will help you to choose the best credit cards for single moms.

How To Apply For A Credit Card With Bad Credit?

Credit cards for bad credit generally have high rates of interest which means the best way for divorced single moms to use them is to pay off the balance whenever they can. Many cards for bad credit charge high annual fees, monthly maintenance fees, and one-time processing through increasing the credit card limit. The annual percentage rates are likely to be higher if single moms have bad credit since issuers base their rates on the creditworthiness of an individual. If you’re a divorced single mom with a disability and planning to use a secured card for credit building then you need to confirm the card issuer is reporting your payments to the bureaus. On choosing a secured card if you have bad credit then find out whether the card issuer is providing you a chance to move to an unsecured card on improving your credit scores. When you show responsible behavior and improve your credit score you can apply for an unsecured card from the new issuer for fair credit. A divorce single mom with a disability needs a credit card if on tight finances. A little bit of preparation and hard work is involved if you are seeking a credit card with a poor credit profile. Following are the steps that you can use to improve your chance and get approval.

1. Checking Credit Score

Before applying for a credit card make sure that the card is a good match for your credit profile. You can get the card for free from your bank or credit card issuer or purchase it from major credit bureaus or even use a paid or free credit monitoring service.

2. Work On Your Credit Score Before Applying

Reducing card balances and on-time-time payments will help you in improving your credit scores. Single divorced moms need to pay off or settle collection accounts and work with a qualified credit counselor first. They need to be patient until the negative items drop off their credit report. Fortunately, with time and consistency, the effect of the negative items will get reduced.

3. Check For Credit Cards Which Provide Pre Approval

Some creditors use this pre-qualification and terms approval to take an assessment of individuals and understand whether they can approve credit cards. Both the term approval and pre-qualification result in soft inquiries and will not damage your credit scores.

What Are Some Cards Single Moms Should Avoid If They Have Bad Credit?

Few cards do more harm for single mothers than good and this may prevent them from rebuilding or building their credit. If you are a divorced single mom and have bad credit then you should avoid the following:

• Avoid getting credit cards that do not report to major credit bureaus as it will make building or rebuilding credit an impossible task for you
• Avoid getting credit cards with high rates of interest. This is because on getting your balance on high-interest cards you may end up in a vicious cycle of debt
• Do not use cards with a large number of additional fees. Avoid using a card that comes with program and participation fees, additional charges, account setup fees, and so on.

Best Credit Cards For Single Moms

Living on one source of income as a single mom can be daunting in the United States. This is more true for divorced single moms with a disability or non-working single mothers who do not have much income to qualify for loans and credit cards. The following is the list of best credit cards for single moms.

1. Capital One Platinum Secured Credit Card

The best thing about this card is that it includes no hidden or annual fees and single moms can learn whether they can get approval for this credit card within seconds. The Capital One Platinum Secured Credit Card can responsibly help you to build your credit. You need to make a refundable security deposit which includes an amount of $49 and get a $200 initial credit line. You can earn back a security deposit as a statement credit while using the card responsibility such as making payments on time. Single mothers have peace of mind as the card includes $0 fraud liability and in case of unauthorized charges, they will not be held responsible. You can also be considered for a high credit line automatically in less than six months with no extra deposit. However, to qualify for this credit card you need to have a security deposit and make sure you have a valid bank account in your name. Depending on your credit profile you are required to pay a deposit of $49, $99, or $200 into the account and in return get an initial credit line of $200 on your credit card.

2. Mission Lane Visa® Credit Card

Single moms with poor credit can make use of this credit card which includes clear pricing, no hidden fees, high credit lines over time, instant credit decision, and an annual fee of $0 to $59. However, it may not be an ideal card for those who carry a balance. The variable purchase APR ranges between 26.99% to 29.99%. You can receive rewards on your purchases by using this credit card however you need to pay an annual fee of $59 to get the privilege. Single moms are recommended to avoid using this card when traveling abroad as it charges a commission of 3% of every transaction that they make outside the United States.

3. Revvi Visa® Credit Card

Single moms with poor credit can apply for this credit card. The credit card is designed for people who have poor credit profiles and bad credit. Although you have bad credit you may still have comparatively good approval odds. The annual fee charged for this credit card differs between $40 to $75 and the credit score range required to qualify is 550 to 620. The plus point of getting this credit card is that it includes identity theft protection, offers rewards on purchases, and considers applicants who have poor or fair credit scores. However, it includes higher-than-average purchase APRs with no signup bonus and the annual fees can rise to $75. This may not be a card for you if you carry a balance and have a fixed purchase APR of 35.99%.

4. Bank of America® Customized Cash Rewards credit card

Once you make a minimum purchase of $1000 you can get an online cash reward bonus worth $200 within the first 90 days of account opening. Those who are preferred rewards members can get 25% to 75% cash back on every purchase that they make using the card. In other words, you can earn 3.5% to 5.25% cash back on every purchase depending on your choice category. Another benefit of using this credit card is that it requires no annual fees and there isn’t any expiration on rewards. The Bank of America cash rewards credit card is unique as it provides 3% cash back rewards on your purchase. Being a gas card it enables you to earn a maximum of 3% cash back at marinas, gas stations, wholesale clubs, and fuel dealers. Additionally, you earn 2% cash back at grocery stores as well as wholesale clubs along with 1% cash back on different purchases. The 2% and 3% cash back applies only when you make a $2500 combined purchase every quarter.

5. DCU Visa Platinum® Secured Credit Card

This is a good option for single mothers who are looking for low-maintenance credit cards. You can reap the benefits of a credit card without paying the annual fee. This card also does not charge fees on foreign transactions therefore any purchase which you make through a foreign bank or currency other than the United States dollar will not be charged so single mothers who want to travel abroad can get a benefit from this credit card. However, you do not get to earn rewards on the purchase that you make and the part also does not offer a signup bonus. The average purchase APRs potentially provide video identity theft protection to cardholders. Single moms are required to have a credit score somewhere between 300 to 640.

6. Discover it® Cash Back

This card is an ideal choice for single moms who want to eliminate the confusion of taking multiple credit cards. Discover will match all the cash back that you have earned automatically at the end of your first year. Single moms can turn $150 cashback easily into $300 with no minimum spending or maximum rewards. You can earn 5% cash back on purchases that you make at different places every quarter like grocery stores, Amazon.com, gas stations, restaurants, and so on. Moreover, you also earn unlimited 1% cash back on every purchase that you make automatically. It includes a friendly introductory rate on balance transfer as well as purchases which can help to make your budget back on track. There are plenty of features that this card provides to card holders such as contactless tap to pay, free FICO credit score on statements, enables users to switch on or off if they misplace their card, and more.

Conclusion

Choosing the right credit card for your family as a single mom depends on your family dynamics and financial position. Single mothers should pick a card that matches their reward preference, spending habits, and needs. This way they can enjoy convenience and cash back. A prime benefit of using a credit card is the ability to get rewards that are redeemable for cash back on all travel bookings, gift cards, etc. Many cards enable single mothers to redeem points for gift cards. Always make sure to use the card which enables you to spend rewards that align with your needs. Also, do not forget to check the rates for every redemption option.