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.
Best Credit Cards for Bad Credit in 2024
The Citi® Secured Mastercard® and the Credit One Bank Unsecured Platinum Visa Card are the best credit cards for bad credit in 2024.
Updated: November 1, 2024
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In today's society, having a credit card is necessary for shopping online, buying gas, booking travel and more. And responsible use of credit cards is one of the best ways to increase your credit score. Our experts at MoneyGeek understand your situation, so we've picked the best credit cards for bad credit to help you improve your credit without paying a lot of fees. We'll share the pros and cons of the easiest credit cards to get with bad credit so you can find one that works best for you.
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 Card | Annual Fee | Min. Security Deposit | Recommended 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.
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
The Chime Credit Builder Secured Visa® Credit Card is an impressive choice for those looking to construct a solid credit foundation without the burdens of annual fees or interest. It champions your credit-building journey by reporting to all major bureaus, and its no-credit-check feature makes it accessible to many. Although you'd need a Chime account and the card uses your deposited funds as collateral, its overall value is undeniable, especially when considering its universal acceptance as a Visa card. This card marries simplicity with functionality.
- PROS
- No annual fee
- No credit check required
- No interest charges
- Reports to all three bureaus
- With security protections
CONS- Must open a Chime account
- No rewards offered
- Funds act as card collateral
- The card comes with no annual fee or interest
- Applying for the card doesn't require a credit check
- To qualify for this card, set up a Chime checking account and ensure a qualifying payroll direct deposit of $200 or more
- You can instantly disable the card to guard against fraudulent activities
- This card lets you build credit with your own funds, reducing risks of debt and missed payments
- The Chime Credit Builder Card reports to all three credit bureaus
- The card is issued by Stride Bank, N.A. and is accepted wherever Visa credit cards are used
- While there's no interest, fees apply for out-of-network ATM withdrawals except in specific ATM
- Funds added to the Credit Builder act as collateral for the card, allowing you to spend up to the deposited amount
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
The Navy Federal Credit Union® nRewards® Secured Credit Card stands out for its combination of rewards and financial growth opportunities. With points earned on every purchase and flexible redemption options, it’s a practical choice for everyday spending. The card notably lacks annual, balance transfer and foreign transaction fees, enhancing its value. Eligibility for a credit upgrade after responsible use further cements its appeal, especially for those building or rebuilding credit. While it requires credit union membership and a security deposit, its strengths make it a compelling option for savvy financial users.
- PROS
- Earns points on every purchase
- No annual fee
- Upgrade opportunity with responsible use
- No fees on balance transfers and foreign transactions
- Includes rental car coverage
CONS- Navy Federal Credit Union membership required
- Security deposit necessary for card approval
- Rewards expire after four years
- APRs, Fees, and Penalties
- No annual, balance transfer, foreign transaction, or cash advance fees.
- 18.00% variable APR for purchases and balance transfers.
- Rewards
- Earn 1 point per dollar spent.
- No limit on reward earnings, with rewards expiring after four years.
- Points redeemable for cash, statement credit, gift cards, and merchandise.
- Perks & Benefits
- Eligibility for credit upgrade without additional security deposit after three months, dependent on credit limit and other factors.
- After six months, you get a review for potential upgrade to unsecured card, with on-time payments and credit limit adherence improving chances.
- Includes rental car coverage.
- Membership Requirements
- Requires Navy Federal Credit Union membership.
- Required deposit of at least $200 into membership savings account to back spending, held as security if approved.
- APRs, Fees, and Penalties
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
The Citi® Secured Mastercard® is an excellent starter card for those building or rebuilding their credit. It reports to major credit bureaus, boosting credit history with responsible use. The card requires a security deposit, which doubles as your credit limit, ensuring controlled spending. Its standout feature is free access to your FICO score, a valuable tool for monitoring credit progress. With no annual fee and worldwide acceptance, it's both cost-effective and globally functional. The card also offers digital wallet compatibility, flexible payment options and robust security features like ID Theft Protection, making it a practical choice for everyday use.
- PROS
- No annual fee
- Reports to major credit bureaus
- With security protections
- Free FICO score access
CONS- Security deposit required
- High purchase APR
- No rewards program
APRS, Fees, and Penalties
- Enjoy no annual fee with this card.
- The card has a variable purchase APR of 27.74%.
Credit Building Features
- Your credit limit is determined by a security deposit, ranging from $200 to $2,500.
- Build your credit with monthly reports to all three major credit bureaus.
- Accepts customers with little or no credit history.
Account Management and Security
- Get free access to your FICO score online.
- Use Auto Pay and account alerts for easier account management.
- Choose your payment date with flexible payment due dates.
- Manage your account online, by phone, or via mobile app 24/7.
- Use Digital Wallets for secure and convenient online, app, and in-store shopping.
- Enjoy complete protection against unauthorized charges.
- Benefit from Mastercard ID Theft Protection at no extra cost.
Global Acceptance
- Accepted worldwide wherever Mastercard is accepted.
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
We feel that the Merrick Bank Secured Credit Card may work well for people who have poor or average credit scores and wish to build their credit. It accepts initial security deposits of $200 to $3,000, making it well within reach of most people. The security deposit you provide doubles up as your credit limit. You may increase your credit limit at anytime by adding more money to your security deposit.
You need to pay a nominal annual fee of $36 for the first year, and you’re billed at $3 per month thereafter. This card reports account activity to the top three credit bureaus each month. It also gives you free access to your FICO Score every month.
Using this card outside of the U.S. might not be in your best interest as it charges a foreign transaction fee.
- PROS
- Can qualify with poor credit
- Accepts $200 to $3,000 as security deposit
- Low annual fee
- Competitive APR
- Reports to the major credit bureaus
- Lets you view your FICO Score for free
- Regular account reviews to determine if you’re eligible for a credit line increase
CONS- Foreign transaction fee
- Cash advance fee
- No possibility of upgrading to an unsecured card
- Credit Building Features
- Secured Credit Cards are ideal for those looking to build or rebuild credit, regardless of their credit background.
- Unlike debit or prepaid cards, this card helps build your credit history by reporting payment history to all three major credit-reporting agencies.
- Credit Line Flexibility
- Choose your own credit line by setting a security deposit between $200 and $3,000.
- You can increase your credit line anytime by adding to your security deposit, up to $3,000.
- After nine months, your account is reviewed for a credit line increase without needing an additional deposit.
- Account Management and Security
- Access your FICO Credit Score for free each month.
- Enjoy fraud coverage if your card is lost or stolen.
- Manage your account 24/7 with online access.
- Stay on track with Auto Pay and account alerts.
- Credit Building Features
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
The Capital One Platinum Secured Card is a commendable tool for individuals looking to pave their credit journey. Without the burden of annual fees and the advantage of quick approvals, this card positions itself as a user-friendly option. While the initial security deposit is a caveat, the card promises credit line enhancements within half a year based on responsible use. The cherry on top is its robust security features and the ability to monitor one's credit score seamlessly. It's suitable for those eyeing credit growth, although potential users should be mindful of its higher interest rates.
- PROS
- No annual fee
- Quick approval process
- Improves credit with responsible use
- Potential for higher credit line
- Comes with security protections
CONS- Requires security deposit
- No rewards program
- High interest rates
APRS, Fees, and Penalties
- Enjoy no annual or hidden fees, and find out if you're approved in seconds.
Credit Building
- Build your credit by using the Capital One Platinum Secured card responsibly.
- Start with a refundable security deposit as low as $49 to access a $200 initial credit line.
- Earn back your security deposit as a statement credit by making on-time payments.
- Be automatically considered for a higher credit line in as little as 6 months without needing an additional deposit.
Perks & Benefits
- Benefit from $0 Fraud Liability, ensuring you're not responsible for unauthorized charges.
- Monitor your credit score for free with CreditWise from Capital One.
- Access your account 24/7 via online banking or the Capital One mobile app.
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.
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
You may consider applying for the Indigo® Mastercard® if you have less-than-perfect credit. Making payments on time and not using too much of your available credit gives you the ability to build your credit score because this card reports your payment history to all three credit bureaus. Prequalifying for this card does not have an effect on your credit score.
The Indigo® Mastercard® comes in three variants; Plat-602, Plat-603 and Plat-604. The annual fee you need to pay depends on the version for which you qualify and varies from $0 to $99. This card finds global acceptance, although using it outside of the U.S. comes with a 1% foreign transaction fee. You get basic Mastercard benefits too.
- PROS
- Plat-604 comes with no annual fees
- No need to provide security deposit
- Apply with no/limited/poor credit history
- Reports to all three credit bureaus
- Prequalification does not affect credit score
- Low foreign transaction fees
- $0 liability and identity theft protection
CONS- First year’s annual fee of $75 for Plat-602, $99 thereafter
- $59 annual fee for Plat-603
- High standard APRs
- Steep late/returned payment fees
- High cash advance fees
Application & Creditworthiness
- Apply even with no, limited, or poor creditworthiness
- No security deposit required
Fees
- Annual fees range from $0 to $99
- 1% foreign transaction fee
Credit Reporting
- Payment history reported to TransUnion, Equifax, and Experian
Perks & Benefits
- Zero liability protection
- Mastercard ID theft protection
Other Cards to Consider
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
Application fees
Is there a fee to apply for the credit card or to open your account?
- 2
Annual or monthly fees
Does the credit card charge any fees to keep the account open?
- 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
Security deposit amount
How much does the credit card require as a security deposit, and is it refundable?
- 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
Initial credit limit
What is the minimum credit limit, and can you get a higher limit by increasing your security deposit?
- 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
Conversion to an unsecured card
Will your secured credit card convert to an unsecured card after you've built good credit habits?
- 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
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.
Other FAQs
Can you get a credit card with a 500 credit score?
Yes, a FICO 500 credit score can get you approved for a new credit card. Based on your score, you may have to apply for a secured credit card, such as the Platinum Secured Mastercard from Capital One.
Are there any good credit cards for 600 credit scores?
Yes, with a FICO 600, you fall into the fair credit score category. These cards begin to offer good benefits and lower fees, such as the Capital One QuicksilverOne Cash Rewards Credit Card, which offers an unlimited 1.5% cash back with a $39 annual fee.
What can I do if I’m not approved for any credit cards?
Not everyone who applies for a credit card will be approved. When this happens, you can build your credit score in alternative ways, such as being added as an authorized user on someone else's card or taking out a credit builder loan.
Can store credit cards like those from Best Buy and Home Depot improve your credit score?
Yes, retail credit cards can improve your credit score as long as they report to the three major credit bureaus. Retail cards can only be used at that brand's locations, but they show your ability to make payments on time and stay within your credit limit, which are important factors in your credit score.
Are there rewards cards for people with bad credit?
Yes, many banks offer credit cards designed for people with bad credit. Often, a security deposit will be required to cover your charges in case you do not pay your bill. Some cards will automatically increase your credit line or convert to an unsecured card if you've handled your card responsibly.
How does bankruptcy affect your credit score?
Bankruptcy drops your score immediately into the "very poor" (FICO 300 to 579) category because you are defaulting on your accounts. The bankruptcy will stay on your credit report for up to 10 years. Over time, with responsible use of credit, your score will improve.
Can you get a credit card after bankruptcy?
Yes. While bankruptcy does have a profoundly negative effect on your credit score, it is not a financial death sentence. Some banks will approve you for a credit card shortly after your case has been discharged.
Are pre-approved or by-mail credit cards a good idea?
Pre-approved offers can be a good idea because they indicate that you have a good chance of approval for that credit card. Before applying, research other offers because you may find a card that earns more rewards, offers better benefits or has a lower fee.
Do pre-approved credit card offers hurt your credit score?
No. When you receive a pre-approved offer, the bank has used a soft inquiry on your credit, which does not affect your credit score. Only when you submit your application for the offer will a hard inquiry post to your credit report and impact your score.
Can I lie about income on a credit card application?
Most banks do not request verification of the income that is listed on a credit card application. However, if you knowingly report inaccurate data on your application, you are committing fraud. No credit card is worth being convicted of a crime.
Do credit checks look at your bank account?
No, your bank account is not normally listed on your credit report.
Do you need a bank account to get a credit card?
Most banks do not require a bank account to approve you for a credit card. However, having an active bank account at the bank you're applying to can improve your odds of approval. Additionally, having an open bank account makes it easier to pay your credit card bill each month.
Can you actually improve your credit score in 30 days?
Yes. Lowering your utilization ratio (the amount owed versus your credit limit) is one of the quickest ways to improve your credit score. You can do this by paying down your balances or by increasing your credit limits.
What bills help build credit?
Most lenders report to the three major credit bureaus when you borrow money, such as when you take out a car loan, credit card or line of credit. Experian Boost gives consumers credit for other bills, such as phone bills, utilities and popular streaming services.
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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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 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.
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.