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Best credit cards for bad credit in May 2025


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Advertiser Disclosure: Bankrate’s editorial team chooses and recommends the credit cards on this page. While we may receive compensation when users apply for cards through this page, our recommendations and card ratings are produced independently without influence by advertising partnerships with issuers.
- The secured Self Visa® Credit Card1: Best for building credit with savings
- Chime Credit Builder Secured Visa® Credit Card: Best card with no interest
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Capital One Platinum Secured Credit Card: Best low-cost secured card
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Firstcard® Secured Credit Builder Card with Cashback: Best card for no credit check
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Discover it® Secured Credit Card: Best cash back card for bad credit
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Nav Prime Card: Best for building business credit
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Bank of America® Customized Cash Rewards Secured Credit Card: Best customized rewards for bad credit
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Mission Lane Visa® Credit Card: Best low-cost unsecured card
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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
Compare Bankrate’s best cards for bad credit
Our picks for | Recommended Credit Score | Credit building features | Learn more | |
---|---|---|---|---|
Apply now on Self's secure site | Building credit with savings | No Credit History | No deposit required No hard pull on your credit report Reports to the three major credit bureaus | Apply now on Self's secure site |
Apply now on Chime's secure site | No interest | No Credit History | No credit check No min. security deposit SpotMe overdraft protection No annual fee | Apply now on Chime's secure site |
Low-cost secured card | No Credit History | Access to CreditWise® credit alerts Reports to the three credit bureaus Automatic account review after six months | ||
No credit check | N/A | In-app credit monitoring No credit check | ||
Cash back card | No Credit History | Free access to FICO credit score Automatic account reviews after seven months Discover® Identity Alerts | ||
Apply now on Nav's secure site | Building business credit | No Credit History | Reports two tradelines to credit bureaus Access detailed business and personal credit reports Access to Nav Business Checking account | Apply now on Nav's secure site |
Customized rewards for bad credit | No Credit History | Free access to FICO credit score No annual fee | ||
Low-cost unsecured card | Bad to Fair | Reports to all three credit bureaus |
Filter by
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Showing 8 results
Best for building credit with savings
Cardholder rating
This rating reflects the average overall score given by real cardholders in response to questions about this card's benefits, rewards, customer service, and data security.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Self's secure site
Intro offer
N/A
Annual fee
$0 annual fee first year, $25 annual fee thereafter.
Regular APR
28.24% APR Variable
Why you'll like this: You can build credit on two fronts thanks to its combo of a secured loan and credit card.
What you should know
Learn more: How to use the Secured Self Visa to build credit
Alternatives: If you need immediate access to credit, a secured card like the Citi® Secured Mastercard® could be the right choice. The $200 minimum security deposit could be refunded after 18 months of using the card responsibly.
- This card can improve the credit mix factor on your FICO score by reporting both credit card and loan payments.
- You can qualify with no additional security deposit or hard credit inquiry.
- Cardholders can owe both credit card and credit-builder loan interest simultaneously.
- Your Savings Builder account balance restricts your credit limit.
Card Details
*$0 annual fee for the first year only, $25 annual fee thereafter. Variable APR of 28.24%. Limited-time offer for new accounts opened during the promotional period.
With no credit check or prior credit required, anyone can start building credit. Fund your card with a minimum security deposit of $100 and use it anywhere Visa® is accepted in the U.S. Build credit by making on-time payments and maintaining a low credit utilization ratio. Every on-time payment helps build credit history.
If you don’t have the $100 security deposit today, consider a Credit Builder Account2 starting at $25 a month4. Consistent, on-time payments help you build credit and build savings to secure the Self Visa® Credit Card3.
1The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC.
2Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., First Century Bank, N.A., each Member FDIC. Subject to credit approval.
3Qualification for the secured Self Visa® Credit Card is based on meeting eligibility requirements, including income and expense requirements and establishment of security interest. Criteria Subject to change.
4$25/mo, 24 mos, 15.92% APR; $35/mo, 24 mos, 15.69% APR; $48/mo, 24 mos, 15.51% APR; $150/mo, 24 mos, 15.82% APR. See self.inc/pricing
Best card with no interest
Cardholder rating
This rating reflects the average overall score given by real cardholders in response to questions about this card's benefits, rewards, customer service, and data security.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Chime's secure site
Intro offer
N/A
Annual fee
None
Regular APR
N/A
Why you'll like this: It doesn’t charge interest or require a traditional security deposit, making it an especially low-risk credit-building option.
What you should know
Alternatives: The Firstcard® Secured Credit Builder Card with Cashback operates similarly: Your spending limit is determined by the funds you deposit into your account and it doesn’t charge interest. However, it also doesn’t require a credit check, which could help people with bad credit access credit-building tools.
- It helps build credit without interest, mitigating the risk of credit card debt.
- The lack of security deposit makes it a cheaper option to open an account compared to other cards.
- It requires qualifying direct deposit direct deposit for eligibility, so you may have to move your banking products to Chime to open this card.
- The card’s limit is dependent on how much you have in the account, so it has less flexibility in emergencies.
Card Details
To apply for Credit Builder, you must have an active Chime® Checking Account.
The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT).
The Chime Credit Builder Card is a secured credit card that can help consumers build credit history. It has no interest*, no annual fees, no credit check to apply, and no minimum security deposit required**
Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card (no minimum deposit required**). Turn on Safer Credit Building** and have your monthly balance automatically paid on time. Chime will report your activities to Transunion®. Experian®. and Equifax®.
Use your secured Credit Builder card everywhere VISA is accepted, including on everyday purchases, such as gas and groceries.
*No Interest: Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
**No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
**Safer Credit Building - On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Best low-cost secured card
Cardholder rating
This rating reflects the average overall score given by real cardholders in response to questions about this card's benefits, rewards, customer service, and data security.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Capital One's secure site
See Rates & FeesIntro offer
N/A
Annual fee
$0
Regular APR
29.74% (Variable)
Why you'll like this: You may be eligible to put down a security deposit as low as $49 and still get a $200 minimum credit line.
What you should know
Learn more: Improve your credit with the Capital One Platinum Secured Card
Alternatives: If you want to earn rewards while you build credit, try the Discover it® Secured Credit Card. While it doesn’t have as low a security deposit as the Capital One Platinum Secured, it offers consistent cash back.
- You get unlimited access to your credit score and tools to help you monitor your credit profile with CreditWise without hurting your score.
- It doesn’t charge an annual fee, another plus for affordability.
- People with bankruptcies or debt collections on their credit reports may have a harder time qualifying.
- The ongoing variable APR is high when compared to some similar cards.
Card Details
No annual or hidden fees. See if you're approved in seconds
Building your credit? Using the Capital One Platinum Secured card responsibly could help
Put down a refundable security deposit starting at $49 to get a $200 initial credit line
You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
Monitor your credit score with CreditWise from Capital One. It's free for everyone
Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
Best card for no credit check
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Firstcard's secure site
See Rates & FeesIntro offer
N/A
Rewards Rate
1% - Up to 15%
Annual fee
N/A
Regular APR
0% APR
Why you'll like this: It doesn’t require a Social Security number or credit check to apply, making it extremely accessible.
Reward Details
- Up to 15%Get up to 15% Merchant Cashback at 29,000 partner merchants
- Up to 10%Get up to 10% Random Cashback on all qualifying transactions
- 1%Earn an additional 1% Unlimited Cashback with Firstcard Premium on all qualifying transactions on top of the two cashback offerings (Merchant Cashback and Random Cashback)
What you should know
Alternatives: The Card with No Credit Check - The Secured Self Visa® Credit Card can improve your credit mix by adding in a credit-builder loan, further helping increase your score.
- It accepts foreign passports and visas for applications, making it easy to apply.
- Firstcard offers credit score monitoring in its mobile app to help cardholders track their progress.
- Cash back rates are random and inconsistent, so it’s not a good option for a rewards strategy.
- Even as a card for bad credit, it offers almost no perks or protections to speak of.
Card Details
Build credit faster, cheaper, and safer
No credit checks and no credit history are required to open a credit card
Accepts immigrants and internationals without an SSN - apply with a passport and visa.
0% APR. Don’t worry about overspending. What you deposit is what you can spend.
No account minimum, no interest, and no overdraft fee
Get up to 15% Merchant Cashback at 29,000 partner merchants
Get up to 10% Random Cashback on all qualifying transactions
Earn 4.00% APY with Firstcard Premium, 2.00% APY with Firstcard+, or 0.75% APY with Firstcard Standard on the money in your Firstcard
Earn an additional 1% Unlimited Cashback with Firstcard Premium on all qualifying transactions on top of the two cashback offerings (Merchant Cashback and Random Cashback)
Monitor your credit score right in the app
Get an in-depth monthly credit report with Firstcard+ and Firstcard Premium
Instant access to your virtual card once your account is approved and you add your virtual card to your phone’s digital wallet
Your money is protected with Firstcard — automatically insured up to $250,000 by FDIC (backed by the U.S. government)
Best cash back card for bad credit
Cardholder rating
This rating reflects the average overall score given by real cardholders in response to questions about this card's benefits, rewards, customer service, and data security.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Discover's secure site
See Rates & FeesIntro offer
Cashback Match™
Rewards Rate
1% - 2%
Annual fee
$0
Regular APR
27.24% Variable APR
Why you'll like this: It’s one of the only secured cards that offers solid rewards with no annual fee. You can even graduate to an unsecured card with responsible use.
Reward Details
- 2%Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.
- 1%Earn unlimited 1% cash back on all other purchases.
What you should know
Learn more: Is the Discover it® Secured Credit Card worth it?
Alternatives: If paying a security deposit isn’t an option for you, some unsecured credit cards are available to people with low credit scores. The Mission Lane Visa Credit Card is a relatively low-cost — if bare-bones — option for people who have bad credit.
- The card has no annual fee, making it an affordable option for people who want to start building credit.
- Offers cardholders a competitive rate of cash back at gas stations and restaurants and unlimited 1 percent on all other purchases.
- There's a minimum $200 security deposit; some secured cards have lower minimums.
- The variable APR, though lower than comparable secured cards, is higher than average.
Card Details
No credit score required to apply. No Annual Fee.
Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
30 points or more—that’s how much you could increase your FICO Credit Score on average after just six months of responsible use.
Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. Activate by mobile app for free.
Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
Terms and conditions apply.
Best for building business credit
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Nav's secure site
Regular APR
N/A
Annual fee
Nav Prime is $49.99/month, which gets reported as a tradeline.
Why you'll like this: It’s available even with a low personal credit score and reports two tradelines to credit bureaus, helping you build credit more efficiently.
What you should know
Alternatives: The Revenued Business Card could also be worth a look since it bases approvals on your business revenue, not your credit score. However, the Revenued Flex Line uses a purchase of future sales financing model, so you can’t avoid finance charges.
- The issuer reports both card repayments and Nav Prime membership fee payments to credit bureaus, allowing you to build credit on two fronts.
- The card doesn’t require a credit check, security deposit or revenue minimums, making it a solid starting point for new business owners.
- Nav Prime membership is very pricey and may not be worth it unless you’re laser-focused on building credit as quickly as possible.
- Since it’s a charge card, it won’t be a great fit if you need to pay off purchases over time or carry a balance to free up cash flow.
Card Details
Two tradelines from Nav Prime payments ($49.99/mo) and Nav Prime Card use
Nav Prime Card to build business credit history from everyday purchases
Nav is the only place you can see up to 6 business and personal credit scores for confident decision-making.
Access to Nav Business Checking to manage money with no domestic fees or minimum balance
Get connected to 160+ new financial options as your credit health evolves
There are no requirements to get Nav Prime. To get the Nav Prime Card, you are required to be an active Nav Prime member, have an approved Nav Business Checking application, and a successfully linked bank account to use as repayment for your Nav Prime Card balance. The Nav Prime Card is currently not available in ND, SD, NV, and CA.
Nav Technologies, Inc. is a financial technology company and not a bank. Banking services provided by Thread Bank, Member FDIC. The Nav Visa® Business Debit Card and the Nav Prime Charge Card are issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. See Cardholder Terms for additional details.
Read the Nav Prime Card Terms and Nav Prime Card Authorized User Terms to learn more.
Best customized rewards for bad credit
Bank of America® Customized Cash Rewards Secured Credit Card
*The information about the Bank of America® Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Regular APR
28.24% Variable
Annual fee
None
Why you'll like this: Its rewards rates match the rates you’ll get on its unsecured version, so you won’t miss out while working on your score.
Reward Details
- 3%3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings
- 2%2% cash back at grocery stores and wholesale clubs
- 1%Unlimited 1% cash back on all other purchases
What you should know
Alternatives: If earning a competitive rate on every purchase is better for you and your spending habits, the Bank of America® Unlimited Cash Rewards Secured credit card could be a better choice.
- It earns the same rates as the unsecured version, so you don’t lose out on rewards just for having bad or no credit.
- You could put down a security deposit of up to $5,000 for a matching credit line, which can improve your credit utilization ratio.
- There’s a spending cap on your highest-earning reward categories, which could be a hassle if you often spend beyond the cap amount.
- The 3 percent foreign transaction fee could lead to unfavorable added charges if you use the card abroad.
Best low-cost unsecured card
Mission Lane Visa® Credit Card
*The information about the Mission Lane Visa® Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Bankrate score
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. If you'd like to learn more about how we rank our cards, explore our ranking methodology here.
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Intro offer
N/A
Rewards Rate
N/A
Annual fee
$0 - $59
Regular APR
19.99% - 33.99% (Variable)
Why you'll like this: Its fees are relatively low and you won’t have to tie up hundreds in a security deposit.
What you should know
Learn more: How to use the Mission Lane Visa Card
Alternatives: If you’re looking for a card with rewards and no annual fee, the Discover it® Secured Credit Card may be a better fit for you. Just keep in mind it requires a security deposit, which will act as your starting credit limit.
- Mission Lane reports to the three major credit bureaus, making it possible to increase your credit score.
- It doesn’t require a security deposit, so it has low upfront costs.
- The APR can be quite high, making it harder to pay off any debt on the card.
- It doesn’t come with many perks or credit-building features that other cards for bad credit have.

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Researching the best cards for bad credit
We thoroughly rate and research the best cards for bad credit based on key criteria to help you make confident decisions when choosing your next credit card. Learn more about our methodology below.
Secured vs. unsecured credit cards for bad credit
Two types of credit cards commonly available to people with bad credit are secured cards and unsecured cards. Both have notable advantages and disadvantages, so deciding which one is best for you may come down to a few key differences.
A secured credit card usually requires a security deposit, which determines and often matches your credit limit. Credit-building features can also include reporting your credit activity to credit bureaus, late fee forgiveness and credit monitoring.
These cards are ideal when you’re starting to build or need to repair your credit. Many of these cards offer preapproval, so it won’t hurt your credit to check your approval odds. Some don’t charge an annual fee, so you can focus on building credit without gaining any unnecessary debt.
Unsecured credit cards for bad credit differ slightly from secured cards. They do not require a security deposit, but sometimes charge annual fees. If you don’t want to — or can’t — provide the funds for a security deposit, unsecured cards for bad credit would be the better option, though they usually aren’t as common and don’t always have the best terms.
We typically advise people to avoid unsecured credit cards for bad credit whenever possible since they tend to have high APRs (even higher than on some secured cards) and can impose various fees. It’s also rare that these cards come with benefits like rewards despite being unsecured.
Features | Secured Credit Card | Unsecured Credit Card |
---|---|---|
Security deposit required | ✔️ | X |
Credit building features | ✔️ | ✔️ |
Offer preapproval | ✔️ | ✔️ |
Potentially high credit limit | ✔️ | ✔️ |
Offer rewards | ✔️ | X |
Likely low-cost to carry | ✔️ | X |
Features | Secured Credit Card | Unsecured Credit Card |
---|
Cards for bad credit news & views
Interest rates are certainly at the forefront of peoples’ minds as they navigate credit credit card options. The Federal Reserve has cut interest rates steadily since September 2024, but did not cut rates at its January 2025 meeting. This puts a pause on lower APRs, but shouldn’t discourage you from trying to build your credit. While interest rates will continue to remain high, if you’re practicing good credit habits, you’ll never have to worry about paying interest.
Many people turn to sites like Reddit to find common ground and crowdsource solutions when they have bad credit and want to build or rebuild to a better score. One user who posted in the r/badcredit subreddit seems to summarize several stories about bad credit, sharing familiar themes of “some late payments and high credit utilization.” These are both habits that will result in interest payments at a time when credit card APRs are still staggeringly high.
There isn’t much good advice in threads about bad credit, and some users even offer to let the original posters become an authorized user on their own cards — but this is risky. You shouldn’t get financially involved with a stranger, so be careful of offers like this if you seek help. However, if you have someone in your life with a good credit score who you trust, ask if they’re willing to make you an authorized user on their credit card. This can boost your score and help you rebound from bad credit.
The staple strategies that FICO says make up your credit score are the following: payment history (35 percent); amount owed (30 percent); length of credit history (15 percent); new credit you apply for (10 percent); and types of credit you use (10 percent). By keeping these factors in mind when applying for and using credit cards, you have the chance to boost your credit score and upgrade to unsecured cards. However, all this is only helpful if you can get your hands on a credit card.
We dug into our proprietary data and analyzed the approval rates for people who applied for credit cards on Bankrate in the past 12 months based on their credit tier: thin, bad, fair, good and excellent credit. Here’s what we found:
In the past 12 months, about 35 percent of people with bad credit who applied for cards on our site were approved. To compare, 30 percent of people with good credit were approved and 44 percent of people with fair/average credit were approved. When your credit score increases, so does your chance of approval for credit cards, so it’s important to continue working on your score and practicing positive credit habits.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up-to-date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Offer details: What makes a great card for bad credit?
A card for bad credit can be useful in providing credit if you can’t qualify for better options. However, it’s important to choose the best one that will help you reach your financial goals. Here are some features of the best cards for bad credit to keep in mind as you shop around:
-
Credit-building tools
If you want to upgrade your card sooner rather than later, features like credit monitoring come in handy for boosting your credit score. And the best cards report to all three credit bureaus, so be sure to skip cards that only report to one or don't report card activity at all.
And many card issuers will periodically review your account to see if you qualify for a credit limit increase or to have your deposit refunded to you. An increased credit limit can help you keep your credit utilization ratio in check and improve your credit score.
Great example: The secured Self Visa® Credit Card and the Capital One Platinum Secured Credit Card
-
Reasonable rates and fees
Don’t focus only on a card’s annual fee. Be sure to also read a credit card’s fine print that explains the terms and conditions, which includes rates and fees. The best cards for bad credit have low or no annual fees and don’t charge you monthly. You may not be able to escape common credit card fees altogether, but you can find cards that minimize these ongoing costs.
Great example: The Discover it® Secured Credit Card
-
Security deposit requirements
If you're considering a secured credit card, check the deposit requirements. A few cards have lower security deposits and higher starting credit limits to help people jump-start their credit building efforts without putting down hundreds of dollars.
Remember that a low security deposit of $100 to $300 can limit your spending power and inflate your credit utilization ratio — stay away from cards with low credit limits and try to put down as much as you can reasonably afford. You may also add more to your security deposit after opening your account to increase your credit limit.
Great examples: Capital One Platinum Secured Credit Card
-
Upgrade opportunities
Some cards allow you to upgrade from a secured card to an unsecured card and refund your security deposit. Once you upgrade, your new card may have new perks and benefits like rewards and a higher credit limit. But the main reason to look for upgrade opportunities is that upgrading your card with the same issuer typically doesn’t require a hard credit inquiry; issuers usually do a soft pull, which protects your credit score and shouldn't undermine your credit-building efforts.
Great examples: The Discover it® Secured Credit Card, Bank of America® Customized Cash Rewards Secured Credit Card* and Capital One Platinum Secured Credit Card
-
Preapproval offers
Too many hard inquiries can cause your credit score to dip. Instead, get preapproval via a soft pull to show you your chances of being approved for a card so you can apply for cards with confidence. You can also try Bankrate’s CardMatch tool, which also uses a soft pull to match you with credit card options.
Some cards don’t require credit checks at all. These cards usually have some sort of deposit — like a checking account or certificate of deposit — to secure your credit limit. These kinds of cards can definitely help build credit, but you usually have to have a checking account with the issuer and make sure you fund it.
Great examples: Capital One and Discover have preapproval tools; Chime Credit Builder Secured Visa® Credit Card, the secured Self Visa® Credit Card and Firstcard® Secured Credit Builder Card with Cashback don’t require credit checks
When to use a credit card for bad credit
A credit card can still be a helpful tool for building credit, even when it’s bad. You can use a card to establish credit, boost your credit file or fix past credit mistakes. Here’s when it’s smart to use a credit card for bad credit:
- When you’re ready to repair your credit. If you’re ready to rebuild credit, a credit card for bad credit can help get you back on track. FICO determines your credit score based on payment history (35 percent), accounts owed (30 percent), length of credit history (15 percent), credit mix (10 percent) and new credit (10 percent). As long as you practice healthy credit habits, you can use a credit card to help repair your score.
- When you have a limited credit history. While you may not necessarily have bad credit, not having any credit can be just as restrictive. Many credit cards for bad credit are also some of the best for no credit history. People new to credit can try starter credit cards, and first-generation credit users can find cards that meet their needs in many of our featured cards.
- When you want options for an emergency. Credit cards for bad credit often don’t have a high credit limit. However, a little can go a long way when it comes to a last-minute expense or emergency. While it won’t replace an emergency fund, it can be useful when you’re in a bind.
- When you need to make purchases without cash. Some expenses can’t be paid with cash or check. Having a credit card can simplify and automate payments. It can also be a good payment alternative if you don’t have a bank account.
How to build your score if you have bad credit
While improving your credit score can feel like an uphill battle, cultivating good credit habits and exercising patience will pay off. Here are a few tips to remember when trying to boost your credit.
- Maintain responsible financial habits with a credit card. One of the most effective ways to build credit is by using a credit card. While a few factors are more important than others when calculating your score, consistent and positive credit management over time is the key to seeing results. Once you apply for a credit card, establish a budget to avoid overspending and risk further damaging your credit score. Take advantage of free credit management tools and monitor your progress closely.
- Use alternative options — but only if necessary. If using a credit card to build credit isn’t the best option for you and your needs, you can explore alternative ways to build credit without a credit card. Other financial tools, such as credit-builder loans and alternative reporting data are among the most popular ways to build credit without a credit card. If you need more help, you could explore credit repair options or pursue credit counseling.
- Seek professional assistance. Do your research while exploring credit repair or counseling. Some bad actors do exist, and scammers may be more inclined to target people with bad credit. Check with the National Foundation for Credit Counseling or your local Financial Empowerment Center for help identifying legitimate credit counseling and repair services.
Bankrate Insight
Bankrate editor and credit card expert Nouri Zarrugh recommends taking your time and watching your score rise with responsible credit card use.
“Start with a low-cost card, only use it for small purchases and pay it off on time and in full, every time,” Zarrugh says. “Just stick to that, and you can see your score rise considerably.”
Ask the experts: What should you do if you get denied a credit card for bad credit?

Ana Staples
Writer and Credit Cards Expert
When you're denied credit, the lender is required by law to send you an adverse action notice listing the specific reasons your application was rejected. Don't automatically assume it was due to your credit score. Multiple other factors go into this decision, such as your income, recent credit applications and issuer-specific restrictions. Once you know exactly why you weren't approved, you can plan your course of action for future applications. Just don't apply again too soon, because card issuers may see multiple applications in a short period as a red flag.

John Ulzheimer
Credit reporting and scoring expert
If you've been denied a credit card because of bad credit, you can do a variety of things to help improve your chances of being approved. You can address the principal reasons for denial, such as making sure negative credit information is actually correct and beginning to properly manage your credit. Or, you can reset your credit card target to a card offering that is more tolerant of applicants who have bad credit. There is no shortage of credit cards designed for consumers with bad credit. Of course, the long-term goal is to earn solid credit scores, so you'll have more credit card options from which to choose.

Thomas Nitzsche
Financial Educator, Debt and Credit
There are a few things you should do if you’ve been denied a credit card for bad credit. In the short term, you may need to find an alternative solution for the reason you were applying for credit. Was it for an essential need that you must now find an alternative to finance? You might have better luck at a local bank, credit union or Community Development Financial Institution (CDFI). CDFIs offer financial products and programs that support borrowers’ specific needs. They are also able to take more risk than a traditional bank. In the longer term, you should understand why you were denied and what you can do to improve your credit profile. This might mean reviewing your credit report, disputing any inaccuracies, making on-time payments on your credit accounts or opening a secured credit card or credit-builder loan (sometimes called a credit-builder CD) with a local bank or credit union to help improve your credit.
Still unsure if a credit card is right for you even if you have bad credit? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
*The information about the Bank of America Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Frequently asked questions about credit cards for bad credit
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A bad credit score is a FICO score of 579 or less or a VantageScore of 601 or less. You can end up with a bad credit score for various reasons, such as missing payments or declaring bankruptcy. Having a bad credit score can make it difficult to get credit cards, car loans and other lending products.
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Missed or late payments, high credit utilization ratio, delinquent accounts, foreclosure or and bankruptcy can all cause bad credit. And when you have bad credit, you typically have fewer options when applying to loans and credit cards — plus, your interest rates are usually higher. Having bad credit can even lead to physical and mental health issues.
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Cards that don't require a credit check when you apply are generally the easiest to get. Some examples of cards that don’t require a credit check include the Chime Credit Builder Secured Visa® Credit Card and the OpenSky® Secured Visa® Credit Card. However, it’s important to remember that these cards, along with many others, are most accessible to people with bad credit, and tend to have higher interest rates and annual fees in exchange for a line of credit.
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A card issuer will likely determine your credit limit based on your creditworthiness, so getting a high limit with a lower score could be tough — but it’s not impossible. The best way to get a higher credit limit with bad credit is to find a secured card that allows you to set your own credit limit based on the security deposit you can afford.
How we assess the best credit cards for people with bad credit
When evaluating the best cards for building credit, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while minimizing costs.
We analyzed over 50 of the most popular cards designed for people with no credit history, bad credit or a fair credit score and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.
Here are some of the key factors that we considered and how they’re factored into our card ratings:
Overall rating
- Cost + APR 50% Read more
- Ease of building credit 25% Read more
- Perks 15% Read more
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Customer experience 10%
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A credit-building card’s cost has a large influence on its overall score and our decision to include it in our best cards list. This is because cards in this category tend to be much pricier than traditional credit cards designed for people with a good or better credit score.
We compare a card’s total cost, including any annual fees, account activation fees, monthly fees and more against the total cost of other cards in the credit-building category and assign each card a score based on its affordability. We also factor rewards-earning potential into our assessment of a credit-building card’s total cost, subtracting expected earnings from the sum of its fees.
To get a sense of a credit-building card’s rewards-earning potential, we estimate its average annual rewards rate and average annual earnings based on the most popular spending categories (as covered in the latest Bureau of Labor Statistics consumer spending report).
However, we use a slightly lower spending assumption ($300 per month or $3,600 per year) to estimate average earnings, assuming credit-builders will start out with a lower credit limit, will want to keep credit utilization low and will focus primarily on small purchases they can easily pay off.
While low-cost credit-building cards will always be at a major advantage in our scoring system and will likely earn a higher spot on our best cards list, no-annual-fee credit-building cards can be hard to come by, especially if you’re looking for an unsecured card. With this in mind, we may include unsecured cards with high fees in our list if they offer other benefits for credit-builders, like a high starting credit limit or useful perks.
A card’s APR is also a major factor in its credit-building score. Each card’s average APR is compared against the average APR of other cards in the category, and the cards with lower-than-average APRs receive a higher rating.
Given the many costs students face — from textbooks to laptops — the presence of an introductory APR on purchases or balance transfers also plays a role in a student card’s score and its inclusion on our list.
Though high APRs are hard to avoid when you’re just starting out or working on your score, credit-builders and students should strive for as low an APR as possible since they’re likely to either be new to managing cards or trying to establish better financial habits and avoid falling into debt.
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Along with a credit-building card’s cost, we consider how easy the card makes it to build credit. To assess this, we evaluate its credit limit potential and minimum deposit requirement.
Unsecured cards with a high starting credit limit and secured cards that let you put down a large deposit and get a matching high credit limit will score the highest according to our “Ease of building credit” rubric and are more likely to appear on our list.
This is because a high credit limit can make it much easier to keep your credit utilization low, a primary credit-building factor that makes up 30 percent of your FICO credit score.
Secured cards have a slight advantage in this category since the maximum credit limit on a secured card tends to be much higher than the typical starting credit limit on an unsecured card. However, unsecured cards have the upper hand in another key aspect of building credit: accessibility.
Cards that carry no or a low deposit requirement can also receive a high score according to our “Ease of building credit” rubric since these cards offer a lower barrier to entry than secured cards that require you to put up hundreds of dollars in an upfront deposit.
Indeed, some users may prefer to pay a non-refundable $50 annual fee while they work on their credit score than tie up hundreds in a refundable security deposit.
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We evaluate a student or credit-building card’s benefits based on how useful they are for someone looking to build a positive credit history or save money on everyday spending.
We consider the inclusion of a rewards program, student-centric perks, access to your credit score or a credit monitoring service of prime importance, along with the ability to prequalify for the card with only a soft credit pull and a clear path to increase your credit limit or graduate to an unsecured or full-fledged rewards card.
Cards that include these benefits are likely to score higher according to our credit-building card and student card scoring rubrics and are more likely to earn a place in our list.
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We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.
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“What is a FICO Score?” FICO. Accessed on March 20, 2025.
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“Financial Empowerment Center.” FEC Public. Accessed on March 20, 2025.
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“National Foundation of Credit Counseling.” NFCC. Accessed on March 20, 2025.
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* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.