Best credit cards for bad credit in March 2025

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.

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.

*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.

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:

1. Credit-building tools: If you want to upgrade your card sooner rather than later, features like credit monitoring and automatic credit limit reviews can 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.
2. Reasonable rates and fees: Don’t focus only on a card’s annual fee. It’s important to read a card’s Schumer Box, which covers information including APR; APR for cash advances; card fees (annual, transaction, cash advance and penalty); additional disclosures and terms and conditions; card information; legal notices; and billing rights. Be sure to also read a credit card’s fine print that explains the terms and conditions.
3. 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.
4. Upgrade opportunities: Some cards allow you to upgrade from a secured card to an unsecured card or increase your credit limit after you show good credit habits over a number of months. They include the Chase Freedom Rise® Card* and the Capital One Platinum Secured Card.
5. 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.

Another item to consider when searching for credit cards is perks. While cards for bad credit have fewer perks, benefits are usually different on secured and unsecured cards. Here’s what you should look for: 

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.

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.

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 and the Chase Freedom Rise® Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

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: