What does it take to move to an unsecured credit card?

Discover, Bank of America and Capital One notably do automatic account reviews on secured card accounts after several months to determine if you're eligible to upgrade to an unsecured card. In this case, make sure you pay on time every billing cycle and keep your credit utilization ratio below 30 percent. If your card issuer doesn't do automatic reviews, then you can still practice responsible credit habits, but also closely monitor your scores until it improves to fair or good credit to apply for better unsecured cards.

How long does it take to boost your credit score?

This can vary, depending on the strategies you use. You can use credit-builder loans, Experian Boost, make regular on-time payments and keep your credit utilization ratio low on your card balances to improve your credit scores. These strategies could help your credit score rise within six to 12 months.

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.

What is the cause and effect of bad credit?

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.

What’s the easiest card to get with bad credit?

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.

How can you get a high credit limit with bad credit?

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.

Best Credit Cards for Bad Credit in May 2025

Compare Bankrate’s best cards for bad credit

	Our picks for	Recommended Credit Score	Credit building features	Learn more
The secured Self Visa® Credit Card¹ 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
Chime Credit Builder Secured Visa® Credit Card 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
Capital One Platinum Secured Credit Card Apply now on Capital One's secure site See Rates & Fees	Low-cost secured card	No Credit History	Access to CreditWise® credit alerts Reports to the three credit bureaus Automatic account review after six months	Apply now on Capital One's secure site See Rates & Fees
Firstcard® Secured Credit Builder Card with Cashback Apply now on Firstcard's secure site See Rates & Fees	No credit check	N/A	In-app credit monitoring No credit check	Apply now on Firstcard's secure site See Rates & Fees
Discover it® Secured Credit Card Apply now on Discover's secure site See Rates & Fees	Cash back card	No Credit History	Free access to FICO credit score Automatic account reviews after seven months Discover® Identity Alerts	Apply now on Discover's secure site See Rates & Fees
Nav Prime Card 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
Bank of America® Customized Cash Rewards Secured Credit Card	Customized rewards for bad credit	No Credit History	Free access to FICO credit score No annual fee
Mission Lane Cash Back Visa® Credit Card	Low-cost unsecured card	Fair to Good	Reports to all three credit bureaus

Researching the best cards for bad credit

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Cards rated

500+

Data points analyzed

250+

Fees tracked

40+

Perks evaluated

We thoroughly rate and research the best cards for bad credit based on cost, APR, ease of building credit, perks and customer experience. To help you make confident decisions when choosing your next credit card, see 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.

Unsecured credit cards don’t require a security deposit, but we typically advise people to avoid unsecured cards for bad credit since many charge annual fees and come with high APRs. These cards would be a better option because deposits aren't required, though they don’t always have the best terms.

A secured credit card usually requires a security deposit, which determines and often matches your credit limit. It's best for people who can afford to put down a decently high deposit and want a card with fewer fees.

However, I know that people with bad credit have limited credit card options. But it's important to understand the options available so that you can make the best choice for your credit-building journey. Here's how secured and unsecured card features compare:

Features	Secured Credit Card	Unsecured Credit Card
Security deposit required	✔	✘
Credit-building features	✔	✔
Approval with low credit score	✔	✔
No credit check	✔	✘
Potentially high credit limit	✔*	✔
Offer rewards	✔	✔
Likely low-cost to carry	✔	✘
Option to upgrade	✔	✔

*Credit limit based on deposit amount.

Learn more: What’s the difference between secured and unsecured credit cards?

When should you get a credit card with 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 your 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.

What to look for in a credit card for bad credit

A card for bad credit can help you build credit if you don’t qualify for options that require a higher score. However, it’s important to do your homework on what’s available before you hit send on an application. Make sure you choose the best card that helps you reach your financial goals. Here are some features of the best cards for bad credit to keep in mind as you shop around:

If you want to upgrade your card sooner rather than later, features like credit monitoring come in handy for boosting your credit score. The best cards report to all three credit bureaus, so skip those that either only report to one or don't report your card activity at all, since the goal is to raise your credit score.

Many secured 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 boost your credit score.

Great examples: The secured Self Visa Credit Card and the Capital One Platinum Secured Credit Card. I used these cards to build up my own credit score by making payments on time and keeping my credit utilization low. I also upgraded to the Capital One Platinum Credit Card, which is currently the oldest card in my wallet.

Don’t focus only on a card’s annual fee. Be sure to read the fine print that explains all the card’s terms and conditions, including rates and fees, FAQs, legal notices and billing rights. The best cards for bad credit have low or no annual fees and don’t charge fees every month to use them. 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. This card has no annual fee and Discover will forgive your first late payment (up to $41 fee after that). Just remember that late payments can affect your credit score, but it's nice to have a small safety net while working on your credit.

Check the deposit requirements for any secured card you’re considering. A few cards offer lower security deposits and higher credit limits to help people jump-start their credit-building efforts without putting down hundreds of dollars.

Remember, a low security deposit of between $100 and $300 can limit your spending power and inflate your credit utilization ratio, so stay away from cards with low credit limits. Instead, try and put down as much as you can reasonably afford to raise your limit. You can always add more to your security deposit after opening your account to boost your credit limit.

Great example: The Capital One Platinum Secured Credit Card. You can get a $200 credit limit for as low as a $49 to $200 deposit — depending on your creditworthiness — with no annual fee. You can raise your limit by depositing up to $1,000.

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. These cards have some sort of upgrade opportunity to an unsecured card with the same issuer.

Learn more: What to look for in a credit card for bad credit

Predatory credit cards: Yes or no?

If you can’t get approved by the secured or unsecured credit cards recommended by Bankrate, there are last-resort options — predatory credit cards.

These credit cards come with lower credit limits, one-time program fees, higher annual fees and monthly fees — and some issuers subtract these fees from your credit limit. These cards also have sky-high interest rates. Nine of the largest credit card issuers in the country reported at least one product with a maximum APR of more than 30, according to the Consumer Financial Protection Bureau (CFPB).

These cards can help you increase your credit score — but only if you use them wisely. It’s important to read the fine print before applying for these cards, because if you overspend and only make minimum payments, you could quickly find yourself drowning in debt.

How to increase your credit card approval odds with bad credit

Having bad credit doesn't exclude you from cards, but you can use these strategies to improve your chances of approval and start building your credit with a card.

Preapproval tools

It's not guaranteed, but you can check your eligibility with preapproval tools. Issuers offering cards for preapproval include American Express, Bank of America, Chase, Citi and Wells Fargo.

Limit applications

Hard pulls during applications can affect your credit and too many in a short time can signal to issuers that you're at higher risk. Choose carefully and only apply for cards you're confident you'll get approved for.

Apply for secured cards

Because the issuer can keep your deposit if you default, secured cards can have easier eligibility requirements. Consider secured credit cards if you can afford a $100 to $200 minimum deposit.

Consider cards with your bank

If you have a checking account with a credit union or bank, you may have better approval odds for one of its credit-building cards. If you bank with a major issuer, it might be more willing to approve you.

What to do if you get denied a credit card

Being denied a credit card because of bad credit can be discouraging, especially if you've done all you can to improve your chances. Here's what you can do after denial:

Wait for the adverse action letter: The Equal Credit Opportunity Act requires creditors to notify applicants, in writing, of the reasons for the denial. When you get this letter in the mail, read it closely to determine which credit reporting bureau it consulted and why it denied you.
Check your credit report: Go over your credit reports with the bureaus. Check for any errors or discrepencies and dispute them. Cleaning up your reports can help improve your score.
Work on improving your creditworthiness: Once you know why you were denied and the factors on your report that are affecting your eligibility, start taking steps to improve your credit profile and scores.

BANKRATE EXPERT FAQ

Ask the experts: What should you do if you get denied a credit card for bad credit?

Seychelle Thomas, CFEI®

Writer, Credit Cards

Getting denied a credit card was always a disappointing moment for my clients during my time in banking, but it’s not the end of the world. When a denial happens, it’s important to get to the root of the issue. A good start is to review your adverse action notice. It gives you the specific reasons why your application was denied, and you can target those problem areas when working on your credit. Even if you don’t qualify for an unsecured credit card, you might still be able to get a secured card through the same bank. So save up enough for a security deposit and start with a secured card instead. With responsible use, I could usually get my clients upgraded to an unsecured card within a year.

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.

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.

Unfortunately, I have plenty of experience with bad credit and digging my way out of a hole of debt. Bad credit is defined as those with a FICO score of below 670 or a VantageScore of below 661 and mine was firmly entrenched in the bad range. I want you to learn from my experience in the bad credit space and get tips on how to dig yourself out.

Try credit-boosting tools

Products such as Experian Boost, Self and UltraFICO can help you boost your credit score by reporting your payment history for utilities, rent, cell phone bills and streaming services to credit bureaus. Some also include your checking and savings account balances.
These services can raise your credit score if you make payments on time, since payment history counts for 35 percent of your FICO credit score. All three are free to use.
Become an authorized user

Authorized users can build their credit if the primarily accountholder uses the card responsibly, and the issuer reports that responsible behavior to the three major credit bureaus — Equifax, Experian and TransUnion. If you work with your primary cardholder and stay on top of payment history and amounts owed, it can go a long way toward building your credit.
Use alternative options

If using a credit card to build credit isn’t the best option, explore alternative ways to build credit without a credit card. 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. Do your research while exploring credit repair or counseling. Scammers may be more inclined to target people with bad credit, so check with the National Foundation for Credit Counseling or your local Financial Empowerment Center for help identifying legitimate services.

The importance of improving your credit score

Interest rates continue to be at the forefront of peoples’ minds as they navigate their credit card options. The Federal Reserve has cut interest rates steadily since September 2024, but did not cut rates at its March 2025 meeting. That means the cost to borrow on products, including credit cards, remains high.

Credit card interest rates rose from 16.16 percent during the week ending July 21, 2021, to 20.09 percent in the week ending March 12, 2025, up 3.93 percentage points, according to Bankrate historical data.

While you won’t see lower APRs anytime soon, you still should do what you can to build your credit. While interest rates remain high, if you’re practicing good credit habits and pay your balance on time, you could improve your credit profile and be eligible for better products with lower interest rates. Plus, paying off cards and not carrying a balance can help you avoid paying interest altogether.

Boosting your credit score and paying off high-cost debt can also create more breathing room in your budget in a higher-rate environment.
— Sarah Foster— Bankrate U.S. Economy Reporter and Analyst

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

Young entrepreneur paying online with credit card on his laptop at home and going bankrupt.

6 tips on how to apply for a credit card with bad credit

What is a good credit utilization ratio?

How I built my credit with a credit card

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Bad credit can affect your mental and physical health

How a bad credit score can affect you

What is considered a bad credit score?

How we choose the best credit cards for people with bad credit

We select cards for “Best” credit cards pages based primarily on how cards score in our proprietary card rating system, our editors’ subjective assessment of card quality, card approval odds and credit requirements and unique card features.

Cards typically must score a minimum of 3.0 stars to be included on a “Best” list. However, we may include cards with scores below 3.0 if they have low credit requirements or unique features — despite their scores, these cards may still be among the “best” in certain categories. Card ratings are not influenced by advertisers or issuer relationships in any way.

Card selection and ordering may vary based on business considerations, including Bankrate visitor interest, site interactions and card application volume. Affiliate commissions (see how we make money), limited-time offers and a card’s general popularity in the product landscape may also influence which cards we feature on our pages and the order in which they appear. Bankrate’s editorial and business teams also strive to feature a variety of card types from various issuers.

Here are some of the key factors that we considered and how they’re factored into our card ratings:

Overall Score

Cost + APR 50% Read more
Ease of building credit 25% Read more
Perks 15% Read more
Customer experience 10%

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.
1. “CFPB Report Finds Large Banks Charge Higher Credit Card Interest Rates than Small Banks and Credit Unions.” Consumer Finance Protection Bureau. Accessed on May 9, 2025.
2. “Financial Empowerment Center.” FEC Public. Accessed on March 20, 2025.
3. “National Foundation of Credit Counseling.” NFCC. Accessed on March 20, 2025.

Benét J. Wilson Lead writer, Credit cards

Benét J. Wilson is a lead reporter at Bankrate who writes about credit cards and credit advice.

Courtney Mihocik Senior editor, credit cards

Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at…

* 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.

Best credit cards for bad credit in May 2025

+ Show Summary

The secured Self Visa® Credit Card1

Chime Credit Builder Secured Visa® Credit Card

Capital One Platinum Secured Credit Card

Firstcard® Secured Credit Builder Card with Cashback

Discover it® Secured Credit Card

Nav Prime Card

Bank of America® Customized Cash Rewards Secured Credit Card

Mission Lane Cash Back Visa® Credit Card