Best Credit Cards for Bad Credit
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If you have bad credit and want a credit card, not all is lost. While you won’t be approved for fancy rewards cards with tons of perks or the most competitive rates, options are available. If you have no credit due to a lack of credit history, it’s possible to establish a credit score. If you use these options responsibly you may be able to build credit.
Many of these options are "secured" credit cards requiring a deposit. The deposit is used as your line of credit and helps the lender lower their risk by having collateral to secure the card. If your credit could use some work, here are the six best credit cards for bad credit.
Jump To
Overview of the 6 best credit cards for bad credit
Card | Best for |
OpenSky® Secured Visa Credit Card | Building a credit history |
Discover it Secured | No annual fee |
Capital One Platinum Secured Credit Card | Flexible deposit |
Credit One Platinum Visa | Cash back rewards |
Indigo Platinum Mastercard | Unsecured card for bad credit |
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Best credit cards for bad credit
OpenSky® Secured Visa® Credit Card
OpenSky Secured Visa Credit Card
Card Name
OpenSky Secured Visa Credit Card
APR
25.64%
Annual Fee
$35
Why We Like It
- No credit check required
- Credit limit from as low as $200 and as high as $3,000
- Reports to all three credit bureaus
- 85% average approval rate
Discover it® Secured Credit Card
For those who do need help building credit history, the Discover It card can be a great asset. It also offers some of the benefits you might expect with an unsecured card, such as rewards programs.
9/10
Fees
8/10
Cashback
9/10
Credit Building
9/10
Bonuses
8/10
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
Card Name
Capital One Platinum Secured Credit Card
APR
29.99%
Recommended Credit Score
Limited, Bad
Annual Fee
$0
Special Offer
No annual or hidden fees.
Special Offer Terms
See if you're approved in seconds.
Rewards Rate
N/A
Terms
Why We Like It
- No annual or hidden fees.
- You could earn back your security deposit as a statement credit by making on-time payments.
- Be automatically considered for a higher credit line in as little as six months with no additional deposit needed.
- Monitor your credit score for free with CreditWise from Capital One.
Credit One Platinum Visa
Credit One Bank Platinum Visa
Card Name
Credit One Bank Platinum Visa
APR
29.74%
Annual Fee
$0 to $95
Rewards Rate
1% Cash Back Rewards on Eligible Purchases. Get up to 10% More Cash Back Rewards from some of the nation’s top retailers!
Why We Like It
- Get rewarded for responsible credit use! Credit One reviews your account regularly for credit line increase opportunities to ensure you get all the credit you deserve.
Indigo Platinum Mastercard
Indigo Platinum Mastercard
Card Name
Indigo Platinum Mastercard
APR
35.9%
Recommended Credit Score
N/A
Annual Fee
$75 for the first year; $99 thereafter
Why We Like It
- Credit-building card
- Pre-qualify without affecting your credit
Best credit cards for bad credit summary
Name of card | Credit check | Secured deposit | Annual fee |
OpenSky Secured Visa Credit Card | No | $200 - $3,000 | $35 |
Discover It Secured | No | $200 | $0 |
Capital One Platinum Credit Card | Yes | $200 | $0 |
Credit One Platinum Visa | Yes | N/A | $75 for the first year, then $99 |
Indigo Platinum Mastercard | Yes | $49, $99 or $200 | $0, $59, or $75 for the first year, then $99 |
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
FAQS
What is considered bad credit?
Credit is determined by your FICO score using your credit report. Bad credit ranges from 300 to 850. Bad credit is typically under 580. Fair credit, the next step up, ranges between 580 and 669. To reach good credit status, you'll need to have a FICO score of 670 or higher.
What is the difference between secured and unsecured cards?
A secured card requires collateral in the form of a cash deposit. The collateral secures the card and helps minimize risk for the lender when extending offers to people with less-than-ideal credit.
An unsecured credit card doesn’t require any collateral, so you do not need to deposit cash. Traditional credit cards are unsecured and are geared toward people with average to good credit. Secured cards that require a deposit are typically reserved for people who need to rebuild credit.
How can I improve my credit with a credit card?
If you get a credit card for bad credit, you probably want to know how to improve your credit. Using your credit card responsibly can help improve your credit and increase your FICO credit score. Five different factors affect your FICO credit score, including:
- Payment history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- Credit mix (10%)
- New credit (10%)
Paying your monthly balance on time is the biggest factor if you are working to boost your credit. Secondly, you want to keep tabs on how much you’re charging. Your credit utilization, the amounts owed. can affect your credit score. Credit utilization is the percentage of credit you are using. A good metric is to keep your credit utilization lower than 30%.
How long you’ve had credit is also a factor. After all, trust takes time to build, which is the same when working with lenders. The credit mix is about the different credit types, such as installment loans (like a student loan) or revolving credit (like a credit card). Having a mix can be beneficial.
New credit is also a factor because it appears risky if you’re constantly opening up new credit cards or taking out loans. So it’s important to be mindful of how often you apply for new credit.
Keeping these five points top of mind can help build credit. But simply paying on time and only charging a small amount on the card and paying it off in full will impact your credit score.
What should I consider when applying for a credit card for bad credit?
If you have bad credit, your options for credit cards may be limited. But it is possible to get credit cards, like secured cards and other options specifically designed for those who are rebuilding credit. When comparing the options, you want to consider several things like:
- Fees. Is there an annual fee or any other type of fee?
- Interest rate. What type of interest rates do they offer? Secured cards may have higher interest rates.
- Reporting to credit bureaus. Does the card report to all three credit bureaus, TransUnion, Experian, and Equifax?
- Fraud protection. What is covered, and how are you protected?
- Managing credit. Do you get access to your credit score? Can you see if your credit is improving?
- Benefits. Do you get cash back, and what percentage do you get? Are there additional perks that come with the card?
Comparing these various factors can help you decide which card is the right fit for you. Ultimately you want a card you can use and get the most out of to go with your lifestyle and meet your financial goals.
How do you go from a secured card to an unsecured card?
Getting a secured card requires a deposit to establish a credit line. At some point, you want your deposit refunded and to graduate to an unsecured credit card. You will need to establish or boost your credit score first. If you pay on time and keep your credit utilization low, you can improve your credit over time. After eight months to a year, you can reevaluate your position. If your credit is in good shape, you can talk to your credit card issuer to see if you can graduate with an unsecured card.
How long does it take to get a credit score if I have no credit history?
You might not even have a credit score if you have no credit history. Without a credit score, it’s difficult to get approved for credit cards. As such, opting for a secured card with a deposit to secure it can be a good option.
After applying for a secured card and depositing, having several months of positive payment history can help. As noted above, some OpenSky cardholders stated they had a credit score after six months. To keep tabs on your credit, you can use the tools that might come with your card or a site like Credit Karma.
Why you should use these credit cards for bad credit
The cards listed above are the best credit cards for bad credit because they have low to no annual fees and various perks. Many secured credit cards don’t offer much in the form of available credit, credit card offers, or benefits like balance transfers. Still, among these options, you can get cash back on certain purchases and work on building credit.
These secured cards can be a gateway to rebuilding credit if your credit is shot. While secured cards are a great option, you want to improve your credit score and upgrade to a better card at some point. That way, you can get your money back and continue to build credit by using the card responsibly.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
The bottom line
Having bad credit isn’t ideal, but it’s not the end of the world. You can start with these credit cards to rebuild your credit and increase your credit score. Once you do, you can graduate to the next level and get an unsecured card. In the meantime, you can take advantage of these cards’ perks and benefits while having a convenient form of payment.
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JoyWallet has partnered with CardRatings for our coverage of credit card products. JoyWallet and CardRatings may receive a commission from card issuers.
Writer
Melanie Lockert is the founder of the blog and author of the book, Dear Debt. Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Business Insider, VICE, Allure and more. Melanie writes about student loans, credit, and mental health and also is the host of The Mental Health and Wealth Show podcast.
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