Best Credit Cards for Bad Credit in 2024

Shield Insurance

MoneyGeek partners with leading industry experts and advertisers to help you get to your financial happy place. Our content is accurate when posted but offers may change over time. We may receive compensation for partner advertisements, but our editorial team independently reviews and ranks products. Learn more about our editorial policies.

When you have bad credit or are trying to rebuild your credit, getting approved for a credit card can be challenging. About 1 out of every 6 people in the U.S. have a very poor FICO score (300 to 579), so you're not alone. There are many reasons people have poor credit, such as job loss, emergency bills, divorce and economic hardship.

Read more

MoneyGeek’s Take: Top 7 Credit Cards for Bad Credit

We’ve selected the top credit cards for bad credit based on multiple factors. For instance, the Citi® Secured Mastercard® charges no annual fee, whereas the Credit One Bank Unsecured Platinum Visa Card for Rebuilding Credit lets you earn cash back on eligible purchases. We’ve also taken other factors such as APRs and added perks into account.

Credit CardAnnual FeeMin. Security DepositRecommended Credit
$0
$200
(No Credit History)
On Issuer's Site
$0
$200
(No Credit History)
On Issuer's Site
$0
$200
(No Credit History)
On Issuer's Site
$36 the first year. Billed $3 dollars per month thereafter. $0
$200
(No Credit History)
On Issuer's Site
$0-$99
N/A
300 – 670 Bad to Fair
On Issuer's Site
$0
$49
(No Credit History)
On Issuer's Site

Some of the links in the above table will take you to one of our partner's sites where you can compare and apply for a selected credit card.

Best Credit Card Offers for Bad Credit

We've separated the best credit card offers for bad credit into two types — those that require a deposit and those that do not. Our MoneyGeek experts prepare detailed reviews of every card and include their opinion on the pros and cons of each card's offer and key details of fees and benefits.

Best Secured Credit Cards to Build Credit

The best secured credit cards for bad credit require a refundable security deposit to get approved for the card. In most cases, you can receive a higher credit limit by depositing more money, and your deposit will be refunded when it is converted to an unsecured card or if you close your account.

Chime Credit Builder Secured Visa® Credit Card

APR
N/A
Min. Security Deposit
$200
Annual Fee
$0
Recommended Credit
(No Credit History)
Navy Federal Credit Union® nRewards® Secured Credit Card

APR
18.00%
Min. Security Deposit
$200
Annual Fee
$0
Recommended Credit
(No Credit History)
Citi® Secured Mastercard®

APR
27.74% variable
Min. Security Deposit
$200
Annual Fee
$0
Recommended Credit
(No Credit History)
Merrick Bank Secured Credit Card

APR
22.70% variable
Min. Security Deposit
22.70% variable
Annual Fee
$36 the first year. Billed $3 dollars per month th...
Recommended Credit
(No Credit History)
Capital One Platinum Secured Credit Card
Credit Card logo for Capital One Platinum Secured Credit Card
On Issuer's Site

APR
29.99% variable
Min. Security Deposit
$49
Annual Fee
$0
Recommended Credit
(No Credit History)
mglogo icon
MONEYGEEK QUICK TIP

Secured credit cards are great options for people with limited credit because they only allow for so much spending. Unsecured credit cards, while they have a credit limit, the card will not limit your spending which could cause issues if the cardholder spends beyond their means. Compare the top secured credit cards at our partner site, CardRatings.com.

Best Unsecured Credit Cards for Bad Credit (No Deposit)

Our choices for the best unsecured credit cards for bad credit allow you to get approved for a new credit card without having to deposit any money. These cards are an excellent choice for people who don't have the ability or desire to make a security deposit.

Indigo® Mastercard®

APR
24.90% variable
Mi. Security Deposit
N/A
Annual Fee
$0-$99
Recommended Credit
300 – 670 Bad to Fair
HOW WE RANK CREDIT CARDS APPROVED FOR LOWER CREDIT SCORES

Our experts analyze 57 data points they collect from issuer websites, the Consumer Finance Protection Bureau and details provided by our partners to make sure we give you the most accurate information possible. They subject all new and existing cards from this segment to our unique ranking methodology that takes multiple parameters into account to arrive at the best of the lot.

  • Average APR: 20%
  • Annual Fee: 20%
  • Credit Needed to Apply: 20%
  • Cash Back/Rewards Rate: 5%
  • Late Fees: 2%

How to Compare Credit Cards for Bad Credit

There are many good credit cards available for those with bad credit. If you're looking to build or repair your credit history, it's important to choose a card that best fits your needs and financial situation. So to cut through the noise, you'll want to pay close attention to certain features and criteria that will help you decide which card is right for you. Below are 10 things you should look out for when comparing credit cards:

  1. 1
    Application fees

    Is there a fee to apply for the credit card or to open your account?

  2. 2
    Annual or monthly fees

    Does the credit card charge any fees to keep the account open?

  3. 3
    Interest rates

    What is the interest rate on purchases and balance transfers? Is the card issuer offering a promotional rate for new cardholders? If so, what are the terms?

  4. 4
    Security deposit amount

    How much does the credit card require as a security deposit, and is it refundable?

  5. 5
    Earn rewards on purchases

    Does the card earn rewards on your purchases? If so, does it earn cash back, miles or points? Are there any bonus categories or limits on how much you can earn, and do your rewards expire?

  6. 6
    Initial credit limit

    What is the minimum credit limit, and can you get a higher limit by increasing your security deposit?

  7. 7
    Credit limit increases

    Does the bank automatically increase your credit limit after you've used the card responsibly? If so, how long until that happens?

  8. 8
    Conversion to an unsecured card

    Will your secured credit card convert to an unsecured card after you've built good credit habits?

  9. 9
    Free credit score

    Does the card provide free access to your credit score so that you can monitor your progress towards building your credit history?

  10. 10
    Additional benefits

    Are there any other benefits when using the card, such as no foreign transaction fees, purchase protection or zero liability for unauthorized purchases?

Types of Credit Cards for Subprime Credit

There are a variety of credit cards available for people who are building their credit. While some require a security deposit, many do not.

Card Type
Description

Secured credit cards

These cards require a deposit to open your account, and
the credit limit is equal to your deposit. Many cards,
like the Merrick Bank Double Your Line® Secured Credit Card,
have a minimum security deposit amount but also allow you
to deposit more money to receive a higher limit.

Partially secured credit cards

Customers have to provide a security deposit, but the
credit limit is more than the security deposit. The
Capital One Platinum Secured Credit Card requires a security
deposit of $49, $99 or $200 to receive an initial credit
line of $200. Your account may receive a credit limit
increase in as little as six months without requiring a
larger security deposit.

Unsecured credit cards

Unsecured credit cards do not require a security deposit
for approval. The Petal 1 "No Annual Fee" Visa Credit
Card
has no annual fee and does not require a security
deposit.

Store cards

These cards help build your credit by reporting your
payments to the credit bureau, but the card can only be
used for purchases at that store. For example, the Home
Depot card cannot be used to make purchases at Lowe's,
Target or a gas station.

What to Look for in a Card to Help Build Credit More Easily

When looking for a credit card to build your credit, it pays to look at the basic features of each card. Ideally, you'll find a credit card with no annual fee and a low APR on purchases that earns attractive rewards and offers useful benefits, like free access to your credit score.

Good credit cards for bad credit usually have no annual fee, but it is OK to pay a fee if the card earns rewards or includes benefits that make paying the fee worthwhile. You should try to pay your balance in full each month to avoid interest charges, but that may not always be possible. If you have to carry a balance over to the next month, having a card with a low APR means that you'll pay less interest than you would on other credit cards that charge a higher interest rate.

Beyond these standard features, you also want to dig deeper into the credit card's details to avoid unfriendly terms and fees.

What to Be on the Lookout For

blueCheck icon
  • Hidden fees. While some credit cards do not charge an annual fee, they may charge an application fee or monthly fees.
  • Grace period. The grace period is the number of days after the statement closes that you have to pay the balance without being charged interest. Longer is better for this feature, and the best credit cards provide a grace period of up to 25 days.
  • Foreign transaction fees. When you travel internationally or buy something online from another country, banks can charge up to 3% of the transaction amount as a fee. The best credit cards waive this fee completely.
blueCheck icon
  • Penalty APR. Paying late or having a payment returned by your bank for insufficient funds can increase your interest rate. But there are some secured credit cards that do not raise your APR if you pay late.
  • Late fees. How much does the credit card charge if you pay late? Late fees can vary, but most charge about $40 for late payments, but there are a few issuers that waive late fees.
  • Over-the-limit fees. Because many subprime credit cards have low limits initially, it can be easy for consumers to go over the limit. Pay attention to the fees that the credit card charges and use your credit card sparingly to avoid going over the limit.

4 Tips for Improving Your Credit with Your New Card

Getting a new credit card is the starting point for improving your credit. Now that you've been approved, you must use it responsibly to increase your credit score. Build your score by following these tips:

    tiered icon

    Make all payments on time

    Be sure to make your minimum monthly payment before the due date. Setting up an automatic payment of the minimum due from your bank account ensures you will never miss a payment.

    creditCard2 icon

    Use the credit card regularly

    By making a few small purchases each month and then paying them off quickly, you're showing the bank that you can use the card responsibly. This behavior is usually rewarded with an increased credit limit or upgrading your secured card into one that is unsecured.

    badCredit icon

    Keep your balances low

    When the amount you owe is low compared to your credit limit, that can increase your credit score. Consider limiting your purchases to only the amount that you can pay in full each month.

    creditDenied icon

    Avoid fees and penalties

    Whenever the bank charges a fee or penalty, it is that much harder to keep your balances low and pay off your balance each month. Avoid late payment fees, over-the-limit fees and other fees to keep your money in your pocket.

Other Ways to Build/Rebuild Credit Without Getting A Credit Card

While getting approved for a new credit card is a popular way to build credit, it is not the only way to do so. There are several alternatives available that will help you build your credit history so that you can get a new card in the future.

Alternatives to Building Credit without a Card

blueCheck icon
  • Use a credit builder loan. Credit builder loans are similar to a traditional loan, but the payout is at the end. You pay monthly payments for a period of time. Then, when the term is over, you receive a check for the loan amount. These lenders charge a small fee for the service and report to the credit bureaus to show your positive payment history.
  • Rent payment services. While most landlords do not report rent payments to the credit bureaus, some companies do so for a fee. When you sign up for one of these services, your positive rent payment history can help you build your credit.
blueCheck icon
  • Get added as an authorized user. By adding your name as an authorized user on someone else's credit card, you'll benefit from their payment history and responsible use of the card. Because you can make purchases against their credit limit and the account owner is responsible for your charges, this can be a risky decision for them.
  • Turn on Experian Boost. Experian Boost allows payments to telephone companies, utilities and select streaming services to report to your credit report. There is no fee for this service, but it only affects your Experian credit history.
Loading...

Other FAQs

Are there any credit cards for 400 credit scores?

Can you get a credit card with a 500 credit score?

Are there any good credit cards for 600 credit scores?

What can I do if I’m not approved for any credit cards?

Can store credit cards like those from Best Buy and Home Depot improve your credit score?

Are there rewards cards for people with bad credit?

How does bankruptcy affect your credit score?

Can you get a credit card after bankruptcy?

Are pre-approved or by-mail credit cards a good idea?

Do pre-approved credit card offers hurt your credit score?

Can I lie about income on a credit card application?

Do credit checks look at your bank account?

Do you need a bank account to get a credit card?

Can you actually improve your credit score in 30 days?

What bills help build credit?

Next Steps

Now that you know how credit cards for bad credit work, consider applying for one based on factors such as your existing credit score and whether or not you can pay a security deposit. Paying attention to a card’s fees, APRs and possible rewards is also important.

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.

About Lee Huffman


Lee Huffman  headshot

Lee Huffman is a credit card and personal finance expert at MoneyGeek. He has spent 18 years as a financial planner and corporate finance manager, with 12 years of experience writing about early retirement, credit cards, travel, insurance and other personal finance topics. His writings are published on The Points Guy, Investopedia and NerdWallet.

Huffman earned his business management degree from Pepperdine University and his master's degree in eBusiness from the University of Phoenix. He enjoys showing people how to travel more, spend less and live better through the power of travel rewards.


*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Learn more about our editorial policies and expert editorial team.
Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.