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When you have less-than-perfect credit, you might find your options limited when it comes to all things that have to do with your finances. This includes credit cards. There are a limited number of credit cards available to borrowers with bad credit.
However, it’s not all gloom and doom. Some credit cards are designed to progress with you. As you demonstrate how good you are with credit, you may be rewarded with higher credit limits and higher credit scores. Let’s start with 11 of the best credit cards for bad credit.
When you’re looking for a credit card, it’s advisable to find one that suits your needs. That’s why we’ve compiled a comprehensive list of credit cards for bad credit that each have a unique focus or offer.
The First Progress Platinum Elite Mastercard® Secured Credit Card offers secured credit lines up to $2,000. The annual fee is $29 and the annual percentage rate (APR) is 25.24%.
If you’re looking for a credit card with a low APR, there’s not much that beats the card_name. The APR is reg_apr,reg_apr_type, which is very low for a credit card for bad credit. This secured card has a annual_fees annual fee.
The OpenSky® Secured Visa® Credit Card doesn’t require a credit check and it’s possible to receive a credit line increase after six months. The deposit can be as low as $200 and comes with a annual_fees annual fee and a reg_apr,reg_apr_type APR. After six months, you may be able to “graduate” to an unsecured card.
The OpenSky® Secured Visa® Credit Card now allow customers to earn up to 10% cash back on purchases at over 40,000 retailers.
Learn more on our full review here.
As far as rewards go, the card_name has the highest earning rate of any secured card on this list. You earn 1.5% cash back on all purchases and 5% cash back on hotel and rental car purchases made through Capital One Travel. The minimum deposit is $200 for this secured card and there is a annual_fees annual fee.
The card_name is our pick for the best credit card for a low deposit. For annual_fees, you can secure a credit line up to $200. There is annual_fees annual fee and it’s possible to earn back your security deposit. You can also be considered for credit limit increases after six months.
Learn more on our full review here.
The Revenued Business Card isn’t technically a credit card, but rather, a revenue-based flex line. It’s a unique financing tool in that your future revenue receivables can be purchased at a discount in exchange for providing money you need now.
The card_name automatically considers credit line increases for cardholders. The annual fee is annual_fees, but it’s waived the first year if you sign up for AutoPay at the time of application. There is no security deposit required and no ATM withdrawal fees. You may be able to access part of your credit line through a digital wallet before your credit card arrives.
Learn more on our full review here.
There is no hard credit check for the card_name†**. This means virtually anyone can qualify if they meet the requirements, which are a little different than most credit cards. To meet the eligibility1 requirements for the card_name, you need to have your Credit Builder Account** in good standing, make at least three on-time payments, have at least $100 in savings progress, and satisfy income requirements1†. Your credit limit can go up as your savings progress goes up.
Learn more on our full review here.
The card_name is unique in that it doesn’t charge interest on the purchases you make. That distinguishes it from the other no-annual-fee cards on the list, not to mention those that do charge fees. There is no credit check either. The card requires a qualifying direct deposit of $200 or more to be eligible for the credit card. As a secured card, your credit limit is equal to an amount you deposit.
Learn more on our full review here.
Card name | Credit score | Annual fees | Welcome points |
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Poor/Limited/No Credit | $29 | N/A | |
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The best credit cards for bad credit were chosen from 30 credit cards marketed to borrowers with low credit scores. Cards were evaluated based on their unique offerings for bad credit card borrowers included in the list above. APR, annual fee, late fees, penalty fees, rewards, balance transfer offer, and other factors were also taken into consideration.
With bad credit, one of the most compelling reasons to get a credit card is to build your credit score, assuming you pay on time and keep your credit utilization low. Once your credit score increases, you may qualify for better financial products, which can make borrowing money easier and less expensive.
If you have bad credit and are looking for a credit card, take a look at lists of cards that accept applications from low-credit-score borrowers, such as the one compiled above.
Once you have narrowed down the choices based on your needs and priorities, ask yourself these questions:
If you’re worried about even getting approved for a credit card, the easiest card to get is a secured credit card. As we explained earlier, a secured credit card requires a deposit that will act as your credit limit. You can spend up to that amount on your credit card each billing cycle.
When you apply for a credit card with bad credit, be sure you have all the information you need at your fingertips. This can include:
You’ll likely apply online. A decision is often made very quickly.
Some cards charge so many fees and a high interest rate that the cost far outweighs the benefits. There are definitely better cards than these:
The disclosures for the Total Visa Card, Revvi Visa Credit Card and First Access Visa Credit Card look identical. They are full of junk fees that will drag your finances down. To start, you pay a $95 “program fee” to gain access to the card. Then, you pay a $75 annual fee the first year, and a $48 annual fee every year after that. But we’re not done with fees yet. After the first year, you’re also charged a monthly servicing fee which comes out to $99 per year (or $8.25 per month). All these fees are for a $300 credit limit. You can do better.
The PREMIER Bankcard Grey Credit Card is one of the few options for an unsecured card with bad credit, but it’s incredibly expensive. The APR is 36%. Then, you have to pay a $95 program fee, an annual fee between $50 and $79 for the first year (then $45 to $49), and a monthly maintenance fee. The monthly maintenance fee ranges between $0 and $96 for the first year and $75 and $124.80 for subsequent years.
If it sounds confusing, that’s because it is. You’re better off getting a secured credit card that doesn’t charge a bunch of junk fees.
If you have bad credit, there are other ways you can boost your score besides showing how responsible you are paying off a credit card. You may want to consider the following alternatives to a credit card.
A debt consolidation loan is an installment loan rather than a revolving line of credit. In your credit report, it shows up in a different category from credit cards. When the money is paid off in installments, you not only build your credit history with on-time payments, but you can also take the amount on your credit card to zero, which looks great for your credit utilization ratio.
If you don’t already have your payments set to auto-pay, open a new window and do it right now. It’s that valuable because 35% of your credit history is built with on-time payments. If you set up auto-pay, you won’t have to think about being late ever again.
There are a few things you shouldn’t do when it comes to your finances. For one, don’t close older accounts. A part of your credit score is the length of your credit history, or how long your accounts have been open. Be careful what accounts you close. Of course, if you have trouble spending on an account and would rather have it closed to eliminate temptation, that’s an important consideration as well.
New credit inquiries account for 10% of your credit score. Applying for a bevy of credit in a short amount of time is concerning to credit issuers and your credit score may take a hit. However, they recognize that some inquiries are normal, so be choosy with whatever credit you apply for. To reduce credit inquiries on your report, consider prequalifying with a lender who offers a soft credit check, which won’t show up on your credit report.
Balances on your revolving lines of credit should be kept under 30%, if not lower, for the best credit scores. When you pay down your balances, you may get a more favorable credit utilization ratio which can boost your credit score.
When it comes to building your credit, there are some cards and issuers that help more than others. The card_name is worth mentioning again since it doesn’t charge interest or an annual fee, and there’s no credit check required.
This stands in stark contrast to many of the subprime credit card offers you may see come through the mail. They can bury you in fees and may do little to help build your credit.
The bottom line is that it’s up to you to build your own credit score, whether or not you choose one of these credit cards. A higher credit score brings a host of benefits that make borrowing money easier and more affordable. Be sure to set your payments on auto pay so you’re never late with a payment. You can achieve a higher credit score with a little work and patience.
The limit you’re approved for depends on your credit score, debt levels, income, and application. It’s possible you may only qualify for a secured credit card, which you’ll need to front the deposit for. The deposit determines your credit limit.
If you’re looking for a credit card and have a 500 credit score, you may want to look at secured cards that are issued to users with any credit score.
Yes. There are credit cards specifically for borrowers with bad credit. You just need to find the right card and use it responsibly to help build your credit.
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