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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.
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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.
Card Name | Annual Fee | Security Deposit | |
---|---|---|---|
1. | $0 | $200 | |
2. | Navy Federal Credit Union® nRewards® Secured Credit Card | $0 | $200 |
3. | $0 | $200 | |
4. | $36* | $200 | |
5. | $0–$99* | Not Required | |
6. | $0 | $49 | |
7. | $35 – $99 | Not Required |
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.
- Secured Chime Credit Builder Visa® Credit Card
Unique credit-building card with no annual fee or interest
- UnspecifiedAPR
- $200Min. Security Deposit
- $0Annual Fee
- None–PoorRecommended Credit
- Navy Federal Credit Union® nRewards® Secured Credit Card
A good secured card for building credit and earning rewards
- 18% VariableAPR
- $200Min. Security Deposit
- $0Annual Fee
- None–PoorRecommended Credit
- Citi® Secured Mastercard®
Best credit card for building credit with no or limited credit history
- 27.74% VariableAPR
- $200Min. Security Deposit
- $0Annual Fee
- None–LimitedRecommended Credit
- Merrick Bank Secured Credit Card
A good secured credit card for people who wish to build their credit
- 22.45% VariableAPR
- $200Min. Security Deposit
- $36*Annual Fee
- None–PoorRecommended Credit
- Capital One Platinum Secured Credit Card
Best secured card for low deposit and potentially high credit limit
- 30.49% VariableAPR
- $49Min. Security Deposit
- $0Annual Fee
- Limited – BadRecommended Credit
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®
A good unsecured credit card to build or rebuild credit
- NoneRewards Rate
- 24.90% VariableAPR
- $0–$99*Annual Fee
- None–PoorRecommended Credit
- Milestone® Unsecured Mastercard®
A good unsecured credit card for people with poor or no credit history
- NoneRewards Rate
- 24.90% VariableAPR
- $35 – $99Annual Fee
- None–PoorRecommended Credit
The Best Credit Cards for Bad Credit at a Glance
The links in the table below and the following component will take you to one of our partner's sites where you can compare and apply for a selected credit card.
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:
Application fees
Is there a fee to apply for the credit card or to open your account?
Annual or monthly fees
Does the credit card charge any fees to keep the account open?
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?
Security deposit amount
How much does the credit card require as a security deposit, and is it refundable?
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?
Initial credit limit
What is the minimum credit limit, and can you get a higher limit by increasing your security deposit?
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?
Conversion to an unsecured card
Will your secured credit card convert to an unsecured card after you've built good credit habits?
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?
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 |
Partially secured credit cards | Customers have to provide a security deposit, but the |
Unsecured credit cards | Unsecured credit cards do not require a security deposit |
Store cards | These cards help build your credit by reporting your |
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
- 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.
- 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:
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.
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.
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.
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
- 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.
- 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.
Top Questions About Credit Cards for Bad Credit & Rebuilding History
After learning about credit card options for people with bad credit and tips for rebuilding your score, you may have additional questions. Some of the most common questions are focused on how to get approval when your credit score is low and what to do if your application is declined.
- Are there many unsecured credit cards that accept applicants with fair credit?
- Are there any unsecured credit cards that will accept applicants with lower-than-fair credit?
- If the issuer of an unsecured credit card accepts someone with fair credit, should consumers expect to see higher interest rates and/or lower credit limits for that card than what would be offered to a consumer with better credit?
- What red flags should credit card shoppers with poor or fair credit look for in unsecured credit card offers?
- If someone has fair or poor credit, would that person be better off getting an unsecured credit card (if approved) or a secured credit card? Will one affect a person's credit score more positively than the other?
Other FAQs
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.
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About Lee Huffman

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.