Having bad credit can be challenging, but you’re not alone! MoneyLion is here to help you find the best credit cards designed for those with less-than-perfect credit. Whether you want to rebuild your credit or need a card to manage expenses, there are options to get you back on track. Read on to discover the best credit cards for bad credit and start improving your financial future today.
MoneyLion can help you explore a variety of credit card options specifically tailored to different needs and preferences! Check out the top-credit card options for those looking to rebuild their credit and improve their financial health.
9 Best Credit Cards for Bad Credit
Let’s dive into the nitty-gritty. Here are some of the best credit cards for bad credit, each suited for different needs.
1. Best for no annual fee: Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a game-changer for those with bad credit. Not only does it have no annual fee, but it also offers rewards on your purchases — an uncommon perk for secured cards. You earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% on all other purchases. This card also reports to all three major credit bureaus (Equifax, Experian, and TransUnion), making it a great tool for rebuilding credit.
| Credit score needed: 300-670 | Purchases intro APR: 28.24% variable |
| Intro bonus: Discover will match all the cash back you’ve earned at the end of your first year | Cash advance fee: $10 or 5%, whichever is greater |
| Annual fee: $0 | Balance transfer fee: 3% |
| Regular APR: 29.99% variable | Foreign transaction fee: None |
2. Best for low deposit: Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is ideal if you’re strapped for cash. With a low security deposit requirement starting at $49, $99, or $200, you can start rebuilding your credit without breaking the bank. Plus, with responsible use, you may be eligible for a higher credit line in as little as six months. It’s perfect for those who need to keep initial costs down while working on their credit score.
| Credit score needed: 300-629 | Purchases intro APR: 29.99% variable APR |
| Intro bonus: N/A | Cash advance fee: Either $5 or 5% of the amount of each cash advance, whichever is greater |
| Annual fee: $0 | Balance transfer fee: N/A |
| Regular APR: 29.99% variable APR | Foreign transaction fee: 3% |
3. Best for building credit: OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card doesn’t require a credit check, making it the easiest card to get if you have bad credit. It reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which is essential for rebuilding your credit. With a reasonable annual fee and competitive APR, this card offers a straightforward path to improving your credit without the hassle of a credit check.
| Credit score needed: No credit check | Purchases intro APR: 25.64% variable* |
| Intro bonus: N/A | Cash advance fee: $6 or 5% of the amount of each Cash Advance, whichever is greater |
| Annual fee: $35 | Balance transfer fee: N/A |
| Regular APR :25.64% variable | Foreign transaction fee: 3% |
*This APR will vary with the market based on the Prime Rate.
4. Best for unsecured credit: Credit One Bank® Platinum Visa® for Rebuilding Credit
The Credit One Bank® Platinum Visa® for Rebuilding Credit is a solid choice if you’re looking for an unsecured credit card for bad credit. It offers cash back rewards on eligible purchases like groceries, gas, and utilities. Plus, it comes with the convenience of not needing a security deposit. This card also provides free credit score tracking, helping you stay on top of your credit-building journey.
| Credit score needed: 300-670 | Purchases intro APR: 29.74%, based on your creditworthiness |
| Intro bonus: N/A | Cash advance fee: Either $5 or 8% of the amount of each Cash Advance, whichever is greater, or $10 or 5% of each Cash Advance, whichever is greater |
| Annual fee: $0 to $95 for the first year, $0 to $99 after | Balance transfer fee: N/A |
| Regular APR: 29.74% variable | Foreign transaction fee: Either $1 or 3% of each purchase in U.S. dollars, whichever is greater |
5. Best for cash back rewards: Discover it® Student Cash Back
Yes, students with bad credit can still earn rewards! The Discover it® Student Cash Back card offers 5% cash back on rotating categories each quarter, like gas stations, restaurants, and Amazon.com, up to the quarterly maximum when you activate. Plus, you earn 1% on all other purchases. It’s an excellent starter card for students who want to build credit while earning rewards.
| Credit score needed: Fair to good (580-740) | Purchases intro APR: 0% for six months |
| Intro bonus: Unlimited Cashback Match — Discover matches all the cash back earned at the end of your first year | Cash advance fee: $10 or 5%, whichever is greater |
| Annual fee: $0 | Balance transfer fee: 3% |
| Regular APR: 18.24% — 27.24% variable | Foreign transaction fee: None |
6. Best for quick approval: Indigo® Platinum Mastercard®
The Indigo® Platinum Mastercard® is great for those needing a fast credit card. It offers prequalification without impacting your credit score and a straightforward application process. This card is designed for those with less-than-perfect credit and provides an accessible way to rebuild your credit.
| Credit score needed: 300-600 | Purchases intro APR: 35.9% |
| Intro bonus: N/A | Cash advance fee: Either $0.50 or 3% of the amount of each cash advance, whichever is greater |
| Annual fee: $75 the first year and $99 after that | Balance transfer fee: N/A |
| Regular APR: 35.9%. | Foreign transaction fee: 1% |
7. Best for low fees: Petal® 1 “No Annual Fee” Visa® Credit Card
The Petal® 1 “No Annual Fee” Visa® Credit Card stands out for those with bad credit due to its low fees. Unlike many other cards for bad credit, Petal® 1 does not require a security deposit and has no annual fee. Additionally, it offers cash back on select purchases and helps build credit by reporting to all three major credit bureaus. It’s an excellent choice for rebuilding credit without incurring hefty costs.
| Credit score needed: Fair | Purchases intro APR: N/A |
| Intro bonus: None | Cash advance fee: N/A |
| Annual fee: $0 | Balance transfer fee: N/A |
| Regular APR: 25.24% — 34.74% variable | Foreign transaction fee: N/A |
8. Best for students with bad credit: Quicksilver Rewards for Students from Capital One
The Quicksilver Rewards for Students from Capital One is a fantastic option for students with bad credit who want to build their credit history while earning rewards. This card offers 1.5% cash back on every purchase, with no rotating categories to worry about. There’s no annual fee, making it a budget-friendly choice for students. Additionally, you get access to a higher credit line after making your first five monthly payments on time, helping you build credit responsibly.
| Credit score needed: Fair to good (580-740) | Purchases intro APR: 19.99% — 29.99% variable |
| Intro bonus: Earn a one-time $50 cash bonus once you spend $100 on purchases within three months from account opening | Cash advance fee: 3% of the amount of the cash advance, but not less than $10 |
| Annual fee: $0 | Balance transfer fee: 3% |
| Regular APR: 19.99% — 29.99% variable | Foreign transaction fee: None |
9. Best for rebuilding credit: Secured Sable ONE Credit Card
The Secured Sable ONE Credit Card offers an easy transition to an unsecured card after demonstrating responsible use. Plus, it comes with rewards and a competitive APR, making it an excellent choice for rebuilding your credit.
| Credit score needed: Limited or bad | Purchases intro APR:18% — 24% variable |
| Intro bonus:None | Cash advance fee:Varies |
| Annual fee:Varied based on credit limit | Balance transfer fee:N/A |
| Regular APR:18% — 24% variable | Foreign transaction fee:Varies |
What is considered bad credit?
So, what is considered bad credit? Typically, a credit score below 580 is seen as poor credit. Bad credit can be caused by late payments, defaults, high credit utilization, or having little to no credit history. Understanding where you stand can help you take the right steps to improve your score.
How to choose a credit card for bad credit
Choosing the right card can make a world of difference. Here’s what to look for:
- Type of card: A secured card is often the best choice for those with bad credit. It requires a security deposit, which acts as your credit limit, making it easier to get approved. Unsecured cards for bad credit are available but often come with higher fees and interest rates.
- Fees: Look for cards with low fees. High annual, maintenance, and application fees can make rebuilding your credit more expensive than necessary.
- Annual fee: Look for low or no annual fees to save money and maximize the value of your rewards and benefits.
- APR: While high APRs are common for bad credit cards, some options offer more competitive rates. Secured cards typically have lower APRs than unsecured ones.
- Credit reporting: Choose a card that reports to all three major credit bureaus (Equifax, Experian, and TransUnion). This will help you build your credit history more effectively.
- Upgrade potential: Some secured cards allow you to upgrade to an unsecured card after demonstrating responsible use. This can be a great way to transition to better credit terms without applying for a new card.
- Preapproval: Look for cards that offer preapproval or prequalification. This can give you an idea of your chances of approval without a hard inquiry on your credit report.
Steps to secure a credit card with less-than-ideal credit
Ready to apply? Here’s a step-by-step guide:
- Check your credit score: Know where you stand so you can choose the right card.
- Compare offers from different issuers: Look at various options for the best terms and features.
- Choose a card and apply: Fill out the application accurately to increase your chances of approval.
- Put down a security deposit: This deposit is usually refundable for secured cards and sets your credit limit.
- Use the card responsibly: Make on-time payments and keep your balance low to improve your credit score.
How to use your card responsibly while gradually increasing your credit score
Building good credit takes time and discipline. Here’s how to do it right:
- Pay your bills on time: Late payments can significantly hurt your credit score.
- Keep your credit utilization low: Aim to use less than 30% of your available credit.
- Monitor your credit report: Regularly check for errors and dispute any inaccuracies.
MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards.
Turning bad credit into good credit
Now you should feel armed and ready to choose the best credit card for your bad credit. Whether you need a secured card to get started or an unsecured card to rebuild your score, there’s a perfect fit out there. Swipe smart, and watch your credit score climb!
FAQ
Can I get a credit card with bad credit?
Yes, many credit cards are designed specifically for people with bad credit. These include secured cards that require a deposit and unsecured cards with higher fees and interest rates.
Are secured credit cards better for rebuilding credit than unsecured cards?
Secured credit cards are often better for rebuilding credit because they are easier to get approved for and require a security deposit, lowering the risk for issuers.
Do all credit cards for bad credit require a security deposit?
No, not all credit cards for bad credit require a security deposit. Unsecured credit cards for bad credit are available but often come with higher fees and interest rates.
