Best credit cards for bad credit

Best credit cards for bad credit

The best credit card for bad credit is often the one you can get approval for. To help you navigate to the right card, our credit card experts spend hundreds of hours each week comparing and reviewing credit cards, including those that aren’t partnered with our site. This ensures you’re receiving an unbiased assessment of which cards for bad credit can best serve your needs. The six cards we ranked as our top 2021 picks offer the most-needed benefits for bad credit including, low credit score requirements, reporting to major credit bureaus and low fees.

Best for low APR

OpenSky® Secured Visa® Credit Card

Finder rating 4 / 5 ★★★★★

Apply now on Capital Bank N.A.'s secure website

If your credit score is especially weak, you might consider the OpenSky® Secured Visa® Credit Card. It doesn't require a credit check for qualification — a rarity among credit-building cards — and you don't even need a bank account to use it. The $35 annual fee is a rather small tradeoff for the card's generous application requirements.

• Pros and cons

  Pros

  • Build your credit. The card reports to all three major credit bureaus, Equifax, Experian and TransUnion. This means you could quickly build your credit if you keep your utilization low and pay your balance on time.
  • No bank account required. You have the option to use this card and pay it off with a check, money order, wire transfer or debit card.

  Cons

  • Annual fee. This card charges a $35 annual fee to use.

• More details

  Annual fee	$35
  Purchase APR	17.39% variable
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	None

Welcome Offer	n/a
Rewards	None
Annual Fee	$35
Minimum Credit Score	300

Apply now on Capital Bank N.A.'s secure website

Best prequalification card

Indigo® Platinum Mastercard® Credit Card

Finder rating 3.8 / 5 ★★★★★

Read review

The Indigo® Platinum Mastercard® Credit Card is a solid unsecured card for bad credit, though recently usurped by the Petal 1 when it comes to ideal unsecured credit-building. However, the Indigo® Platinum Mastercard® Credit Card does allow you to see your approval chances before you apply. This can help you determine if the card is right for you without the burden of a hard credit pull on your score.

• Pros and cons

  Pros

  • Unsecured card. You don't need to make a secured deposit to start building your credit.
  • Prequalification. Request prequalification to see your chances of approval without a hard pull on your credit.
  • No cash-advance fees. For the first year, you get to save money on cash-advance fees. But after that a fee of either $5 or 5% of the transaction, whichever is greater, applies.

  Cons

  • You may pay an annual fee. Depending on your creditworthiness, you could pay $0, $59 or $75 for the first year and $99 thereafter.
  • Foreign transaction fees. Purchases made abroad or online with foreign merchants will cost you a 1% fee of the amount.

• More details

  Annual fee	$0 to $99
  Purchase APR	24.9% fixed
  Balance transfer APR	N/A
  Welcome Offer	N/A
  Rewards	None

Welcome Offer	n/a
Rewards	None
Annual Fee	$0 to $99
Minimum Credit Score	580

Read review

Best for motorheads

Harley-Davidson® Visa® Secured Card

Read reviewTerms apply, see rates & fees

The Harley-Davidson® Visa® Secured Card is, curiously, a solid secured card for bad credit thanks to it's no annual fee and the ability to earn rewards on purchases. Granted, these rewards aren't as diverse as the Petal's offerings, but a majority of secured cards don't offer any sort of rewards at all — especially for no annual fee.

• Pros and cons

  Pros

  • Build your credit. The card reports to all three major credit bureaus, Equifax, Experian and TransUnion. This means you could quickly build your credit if you keep your utilization low and pay your balance on time.
  • No annual fee. You won't have to pay an annual fee to use this card.
  • Rewards. Sure, you're earning Harley Davidson points, but it's more than most secured cards offer.

  Cons

  • Big minimum security deposit. You'll need to put down at least $300 to get started with this card.

• More details

  Annual fee	$0
  Purchase APR	22.99% variable
  Balance transfer APR	22.99% variable
  Welcome Offer	N/A
  Rewards	1x points

Welcome Offer	n/a
Rewards	1x points
Annual Fee	$0
Minimum Credit Score	300

Read reviewTerms apply, see rates & fees

Best for rewards

Discover it® Secured

Finder rating 4.4 / 5 ★★★★★

Read review

The Discover it® Secured is one of the most rewarding credit cards for bad credit. This secured card not only earns 2% back on dining and fuel on up to $1,000 each quarter, but Discover will match all the cash back you earned during your first year. This makes it one of the rare secured cards with a signup bonus, and a powerful one at that. To sweeten the deal, you won't pay an annual fee for the card.

• Pros and cons

  Pros

  • Cash back. Earn 2% back on dining and fuel on up to $1,000 in combined purchases each quarter. After reaching the cap and on all other purchases earn 1% cash back.
  • Cashback match. At the end of your first year, Discover will match all of the cash back you've earned without limits.
  • Potential secured deposit return. After eight months of responsible card use, Discover may return your secured deposit.

  Cons

  • Secured card. You still have to make a secured deposit to use the card.

• More details

  Annual fee	$0
  Purchase APR	22.99% variable
  Balance transfer APR	10.99% intro for the first 6 months (then 22.99% variable)
  Welcome Offer	Discover will match cash back earned at the end of your first card year
  Rewards	2% cash back

Welcome Offer	Other
Rewards	2% cash back
Annual Fee	$0
Minimum Credit Score	300

Read review

Best card for Amazon purchases

Amazon Prime Store Card Credit Builder

Read reviewTerms apply, see rates & fees

The Amazon Prime Store Card Credit Builder is a credit-building option offered to those who apply for the Amazon Prime Store Card but may not qualify based on credit. Even as a secured card, if offers some great value plays for Amazon fans, as you get to choose to either earn 5% cash back on your Amazon purchases or get between 6 and 24 months of deferred interest if paid in full. The only tradeoff is this card doesn't earn rewards elsewhere.

• Pros and cons

  Pros

  • Cash back. Earn 5% cash back on your Amazon purchases.
  • Interest-free perios. Use a promo interest period on purchases made at Amazon.com for 6, 12 or 24 months, depending on the amount you spend. Keep in mind, you must pay your purchases in full before the interest-free period is up. Otherwise, you'll pay interest accrued from the moment you made your purchase.
  • Build credit. Amazon will report to all three major credit bureaus, Experian, Equifax and TransUnion. With responsible use, you will build your credit and Amazon may upgrade you to an unsecured card.

  Cons

  • Secured card. You must make a secured deposit to use the card.
  • Limited use. You can only use the card for Amazon.com purchases and nowhere else.

• More details

  Annual fee	$0
  Purchase APR	27.49% variable
  Balance transfer APR	N/A
  Welcome Offer	$10 Amazon.com gift card upon account opening
  Rewards	5% cash back

Welcome Offer	$10
Rewards	5% cash back
Annual Fee	$0
Minimum Credit Score	300

Read reviewTerms apply, see rates & fees

How to apply for a credit card with bad credit

The application process for cards for bad credit is usually the same as with any other card:

1. Visit the card’s website and select the card you want to apply for.
2. Select Apply Now and fill out the application form.
3. Review the form and submit.

Note: Some card providers let you prequalify. This shows you your chances of approval. However, there’s no guarantee that your application will be approved even if the chances of approval are high.

What if my credit card application is rejected?

In this case, try calling your card provider and ask for reconsideration. Another alternative is to apply for credit cards with no credit check. This way your credit score won’t take a hit and your card application will most likely be approved.

If your application was rejected, it also may mean you need a higher credit score to qualify. There are a variety of ways to improve your credit score without a credit card. For example, some landlords and property management companies will allow you to establish credit or improve your credit by reporting your timely rent payment to the three major credit reporting bureaus.

4 tips for getting a credit card for bad credit

There are a few ways to maximize your chances of approval for a credit card for bad credit.

1. Pick based on your score.Knowing your credit score before you apply can prevent you from choosing cards that are out of your range. Remember, applying for a credit card often results in a credit check, which can put a small, temporary dent in your score.
2. Search among reputable banks. If you can help it, find a credit card for bad credit from a trusted major provider, such as Capital One or Discover. “Bad credit” cards from lesser-known banks may have especially harsh or unusual fees attached to them, such as activation fees or monthly fees you won’t find on most cards.
3. Pay off existing debts. If you have any small debts hanging overhead, try paying those off first. This can help boost your credit score, which will improve your chances of getting approved for a card.
4. Look at secured and unsecured cards. Unsecured cards aren’t your only option for bad credit. Secured cards are a great tool for building credit when you have a poor credit history. But mind the secured and unsecured card differences.

What are the types of credit cards for bad credit?

While a bad credit score is limiting, it doesn’t stop you from utilizing credit. Here are the two main options available to you if you have poor credit.

• Secured credit cards. Secured credit cards for bad credit operate like regular credit cards but require a security deposit to determine the limit of your card. Say you make a $500 security deposit, then you have a $500 card limit. This tells the issuer you have enough money to pay off the card. This is a great way to rebuild your credit history provided the issuer reports to the three major bureaus — and most secured cards do — and provided you pay off your card on time.
• Unsecured cards for building credit. These are standard credit cards specifically designed for those with poor credit. While you can build your credit with unsecured cards for bad credit, they often have low credit limits, punishing rates and fees. This could make them an expensive credit-building option.

  But if you can’t afford to make an upfront deposit for a secured card, an unsecured card for bad credit is your next option.

Credit card for bad credit red flags

Although you can build your credit with this type of card, there are some card features to keep an eye on, which may hinder your credit-building efforts. For example:

• Doesn’t report to credit bureaus. You may find the perfect card for your current financial situation. But if it doesn’t report to the three major credit bureaus, it’s useless for building credit. Whichever card you choose, make sure it reports to the major three credit bureaus.
• Hidden or unusual fees. Keep an eye for fees that aren’t openly advertised. This is often the case with unsecured credit cards for bad credit where you may be charged program fees of up to $25 each month for services you may likely never need. Other fees include monthly maintenance fees, additional card fees and higher-than-average late-payment fees.
• Interest rates. Credit cards for bad credit aren’t known for their low-interest rates, although there are some cards that’ll surprise you. Either way, if you’re looking to build your credit, you should try to pay your full balance on time and avoid paying any interest altogether.

Bottom line

Ultimately, a bad credit rating can significantly impact your lifestyle, making it difficult to get a car, a home loan or other forms of credit. If you find yourself in such a position, don’t despair. Work on improving your credit rating and managing your finances so that you can live debt-free.
Compare secured credit cards for one that best fits your current financial situation.