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Written by
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Sally Herigstad Sally HerigstadReviewed by
Updated March 28, 2024
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People with bad credit scores (in the 300 to 579 FICO score range) can benefit from using a card designed specifically for them. These cards are typically more accessible to people with lower credit scores.
Credit cards for bad credit usually don’t have some of the rewards and features of standard credit cards and may come with higher fees and interest rates. In exchange, consumers with poor or no credit scores may apply and qualify.
The best credit cards for bad credit minimize fees while allowing consumers the opportunity to build their credit score. Many of the cards we recommend also have built-in features to help build credit.
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View card list
Best Credit Cards for Bad Credit of April 2024:
- Best card with no interest for bad credit:Chime Credit Builder Secured Visa® Credit Card
- Best low-cost secured card for bad credit:Capital One Platinum Secured Credit Card
- Best for building credit with savings:Self - Credit Builder Account with Secured Visa® Credit Card
- Best rotating cash back card for bad credit:Discover it® Secured Credit Card:
- Best for building business credit:Nav Prime Card
Additional options
- Best customized rewards for bad credit:Bank of America® Customized Cash Rewards Secured Credit Card:
- Best low-cost credit-building card: Mission Lane Visa® Credit Card
Table of contents
- What you need to know about credit cards for bad credit
- When to use a credit card for bad credit
- Tips for choosing a credit card for bad credit
- How to build your credit score
- How we assess the best credit cards for people with bad credit
- Frequently asked questions
- Ask the experts
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A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
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Featured "Bad Credit" Card
Chime Credit Builder Secured Visa® Credit Card
on Chime's secure site
Best card with no interest for bad credit
Rating: 4.2 stars out of 5
4.2
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
on Chime's secure site
No Credit History
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
N/A
Intro offer
Intro offer is not available for this Chime credit card.
Annual fee
N/A
Regular APR
Best low-cost secured card for bad credit
Rating: 4.1 stars out of 5
4.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
on Capital One's secure site
No Credit History
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
N/A
Intro offer
Intro offer is not available for this Capital One credit card.
Annual fee
Regular APR
Best for building credit with savings
Rating: 3.1 stars out of 5
3.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
on Self's secure site
No Credit History
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
N/A
Intro offer
Intro offer is not available for this Self credit card.
Annual fee
Regular APR
2024 Bankrate Awards Winner
Best rotating cash back card for bad credit
Rating: 4.5 stars out of 5
4.5
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
on Discover's secure site
No Credit History
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
Intro offer
Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
1% - 2%
Rewards Rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all other purchases.
Annual fee
Regular APR
BEST FOR BUILDING BUSINESS CREDIT
Rating: 3.1 stars out of 5
3.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
on Nav's secure site
N/A
N/A
Regular APR
Annual fee
Best customized rewards for bad credit
Bank of America® Customized Cash Rewards Secured Credit Card
*The information about the Bank of America® Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
*
Rating: 3.8 stars out of 5
3.8
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Bankrate review
Bankrate review
No Credit History
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
Regular APR
Annual fee
BEST LOW-COST CREDIT-BUILDING CARD
Mission Lane Visa® Credit Card
*The information about the Mission Lane Visa® Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
*
Bad to Fair(300–670)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Recommended Credit
N/A
Intro offer
Intro offer is not available for this Mission Lane credit card.
N/A
Rewards Rate
Rewards rate is not available for this credit card.
Annual fee
Regular APR
Compare Bankrate’s best cards for bad credit
| Card Name | Our pick for | Recommended Credit Score | Credit-Building Features | Bankrate Review Score |
|---|---|---|---|---|
| No interest for bad credit | No credit history* | No credit check SpotMe overdraft protection No annual fee | 4.2 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) on Chime's secure site |
| Low-cost secured card for bad credit | No credit history* | Access to CreditWise® credit alerts Reports to the three credit bureaus Automatic account review after six months | 4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) on Capital One's secure site |
| Building credit with savings | No credit history* | No deposit required No hard pull on your credit report Reports to the three major credit bureaus | 3.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) on Self's secure site |
| Rotating cash back card for bad credit | No credit history* | Free access to FICO credit score Automatic account reviews after seven months Discover® Identity Alerts | 4.5 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) on Discover's secure site |
| Building business credit | No credit history | Reports two tradelines to credit bureaus Access detailed business and personal credit reports | 3.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) on Nav's secure site |
| Customized rewards for bad credit | No credit history | Free access to FICO credit score No annual fee | |
| Low-cost credit-building | Bad to Fair (300 – 670)* | Reports to all three credit bureaus |
What you need to know about credit cards for bad credit
A bad credit score — a FICO score under 579 or a VantageScore under 600 — can happen for many reasons and negatively affect your finances.Defaulting on loans, missing credit card payments or even opening too many credit lines can negatively impact your credit score. This all could impact your ability to get new lines of credit, get good terms on loans, purchase a house or rent an apartment.
Dig deeper:What is a bad credit score?
What causes bad credit?
Your credit behavior and how you use credit appear on your report and can cause negative changes.
- Missed payments: Since your payment history is the largest influence on your score, missing payments on your cards or loans will have a significant impact.
- High credit utilization: If you’re using the majority of your available credit, it might signal to lenders that you’re relying too heavily on credit and could be at a heightenedrisk of defaulting.
- Low credit age:Any time you apply for new credit you reduce your credit age, which could lower your credit score. If you close a credit card, you could reduce your average credit account age and cause an increase in your credit utilization, which could have negative effects on your score.
- No credit mix: Relying too heavily on one type of credit may have negative impacts on your score. Having a balanced mix of different credit products will show lenders you know how to manage multiple types of credit.
How bad credit can affect you
Having bad credit can make many financial products less favorable or inaccessible, which can make it harder to increase your score. Here are the main ways bad credit can affect you.
Higher interest rates
Bad credit signals to lenders that you’re a high-risk borrower, so creditors charge higher interest rates to compensate for the extra risk.
Limited card options
People with bad credit are often limited to secured cards and cards explicitly for people with bad credit. These cards, while still helpful for building credit, often have less favorable terms compared to most credit cards for better scores. Lenders have reported tightening their standards for credit card approvals so far in 2023, and having a bad credit score may mean you won't qualify for a card you want.
Dig deeper: What to do when your credit card application is denied.
Mental and physical health problems
Studies suggest a strong link between health issues and financial difficulties. Bad credit is an indicator of financial hardship, and the factors that lead to a bad credit score — like carrying high amounts of debt — can cause stress that leads to other physical and mental health problems.
When to use a credit card for bad credit
Even with bad credit, a credit card can still be a useful tool. You can use a card to help you establish credit, boost your credit file or begin fixing past credit mistakes. Here’s when it’s smart to use a credit card for bad credit:
Secured vs. unsecured credit cards for bad credit
The two types of credit cards most commonly available to people with bad credit are secured cards and unsecured cards. Both of these options have notable advantages and disadvantages, primarily surrounding affordability, and deciding which one is best for you may come down to a few key differences.
Some of the best credit cards for bad credit aresecured, which means the issuer requires a security deposit to get the card.Credit card security depositsserve as collateral for an issuer in exchange for lending a line of credit to what it may consider to be a “risky” borrower.
Secured credit cards are often great tools for building credit because they typically have more relaxed credit requirements, which could make them more accessible to people with no, limited or bad credit. However, secured cards often charge higher APRs than cards for fair or better credit and the security deposit may not be ideal for some.
Unsecured credit cards for bad credit differ slightly from secured cards in that they do not require a security deposit. If you don’t want to — or can’t — provide the funds for a security deposit, unsecured cards for bad creditare available, though they usually aren’t as common.
Generally, we advise people to avoid unsecured credit cards for bad credit whenever possible. Many unsecured credit cards for bad credit tend to be expensive since they also have high APRs (even higher than on some secured cards) and a few even charge annual fees. It’s also rare that these cards come with benefits like rewards, despite being unsecured.
Learn more:Can you get a secured card with no bank account?
Tips for choosing a credit card for bad credit
Using a credit card for bad credit is an opportunity to improve your credit profile, but it’s important to know what to look for in this kind of credit card. Here are some key factors to consider:
- Cost: The typical minimum deposit for a secured credit card is $200, but some secured cards have even lower deposit requirements. But an upfront and refundable security deposit could even be more cost-effective than an unsecured credit card for bad credit with an annual fee.
- Plan to upgrade: The best credit cards for bad credit offer chances to graduate or upgrade to a better card with better terms. If you practice good credit habits, your card issuer may refund your security deposit on a secured card or increase your credit limit.
- Consider rewards: If you can get a card for bad credit that offers rewards, only spend within those bonus categories to maximize your earnings and keep your spending manageable. Then plan to pay off those purchases immediately.
1
Know your credit score
Your credit score helps you narrow down which credit cards could give you the best chances for approval. It’s also essential to understand the factors that affect your score so that you can avoid pitfalls that will slow down your credit-building progress and show creditors you know how to use a credit card responsibly.
2
Choose building credit over earning rewards
Many credit-building cards available for bad credit have tools and features that can help you increase your credit score. Look for cards with features like credit limit increases, free FICO scores, upgrades to unsecured credit cards and low security deposit requirements.
3
Ensure the issuer reports to the credit bureaus
Most reputable credit card issuers report your credit use to all three credit bureaus: Experian, TransUnion and Equifax. Reporting to all three is important, as lenders may choose to review your credit using any one of the three. If a card doesn’t report to all three, you run the risk of a lender reviewing an outdated credit score. Credit-building card issuers will often advertise whether they report to all three bureaus, but if you’re unsure, contact the issuer to check.
4
Closely review rates, fees, terms and conditions
Watch out for common credit card fees, which can be especially high on cards for people with low credit scores. These include annual fees, late fees, monthly maintenance fees, penalty APRs and balance transfer fees. Such fees can add to your debt and make it harder to build credit. Some cards for bad credit have terms and conditions that are hard to understand — even for some credit card experts. To save your wallet, look at the card’s Schumer Box and read the terms and conditions thoroughly to avoid any issues.
Here’s what one Bankrate expert wants you to know about credit cards for bad credit
Bankrate editor Ashley Parks wants people to understand the differences between having no credit and having bad credit while emphasizing that it’s possible to build to a good score no matter where you’re starting from.
“Having no credit and having bad credit are not the same. Having no credit means you have no record of how you manage credit, making it difficult for lenders and issuers to gauge your creditworthiness. Alternatively, bad credit can be a result of missed payments, several hard credit pulls in a short time or a bankruptcy filing on your credit report.
Whether you have no credit or bad credit, choosing a card that reports your progress to the credit bureaus and offers tools to help you stay on track is key to getting started on a successful credit-building journey.”
— Ashley Parks, Editor, Credit Cards
Looking for a particular type of credit card for bad credit?
Best cards for 500 credit score
Best cards for 600 credit score
Best travel cards for bad credit
Still unsure if a credit card is right for you even if you have bad credit? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Dig deeper:Learn how to choose a credit card for bad credit
How to build your credit score
One of the most effective ways to build credit is with a credit card. While a few factors are more important than others when calculating your score, consistent and positive credit management over time is the key to seeing results. Once you apply for a credit card, be sure to establish a budget so you don’t overspend and hurt your credit even more.
Use the credit management tools you have access to and keep a close eye on your progress. While getting approved for a credit card when you have bad credit may be more challenging, it’s not impossible, so it’s crucial to take intentional steps to reach your goals.
Dig Deeper:Tips on applying for a credit card with bad credit
If using a credit card to build credit isn’t the best option for you and your needs, you can explore alternative ways to build credit without a credit card. Other financial tools like credit-builder loansand alternative reporting data are two of the most popular ways to build credit without a credit card. If you need even more help, you could explore credit repair options or pursue credit counseling. But do your research while exploring credit repair or counseling. Some bad actors do exist, and scammers may be more inclined to target people with bad credit. Check with the National Foundation for Credit Counseling or your local Financial Empowerment Centerfor help in identifying legitimate credit counseling and repair services.
Bankrate Insight
Regularly checking for inaccuracies on your credit report can help you keep your credit report tidy, making it easier to get and keep your credit score where it needs to be. Luckily “cleaning” your credit report is a fairly easy process.
In the news: Subprime cardholders feel the sting of inflation
Credit card delinquency rates among people with subprime credit rose from 11.12 percent in Q1 2022 to 15.68 percent in Q3 2023. Although The Fed left rates unchanged for a fourth consecutive meeting in January 2024, average credit card rates remain high.
Bankrate recently spoke with Katie Bossler, quality assurance specialist at GreenPath Financial Wellness, a nonprofit credit counseling service, about financial pressures subprime cardholders face. Increased prices on essentials like gas and groceries, reduced income and job losses can cause people to rely on their credit cards or other high-interest debt to make ends meet.
While these pressures can be scary, it’s important to pay credit cards on time, negotiate with your issuer and reach out for help from nonprofit credit counseling services to avoid cycles of high-interest debt.
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
*The information about the Bank of America Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
How we assess the best credit cards for people with bad credit
50+
Cards rated
500+
Data points analyzed
250+
Fees tracked
40+
Perks evaluated
When evaluating the best cards for building credit, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while minimizing costs.
We analyzed over 50 of the most popular cards designed for people with no credit history, bad credit or a fair credit score and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.
Here are some of the key factors that we considered:
Frequently asked questions about credit cards for bad credit
What should you do if you get denied a credit card for bad credit?
There are a few things you should do if you’ve been denied a credit card for bad credit. In the short term, you may need to find an alternative solution for the reason you were applying for credit. Was it for an essential need that you must now find an alternative to finance? You might have better luck at a local bank, credit union or Community Development Financial Institution (CDFI). CDFIs offer financial products and programs that support borrowers’ specific needs. They are also able to take more risk than a traditional bank. In the longer term, you should understand why you were denied and what you can do to improve your credit profile. This might mean reviewing your credit report, disputing any inaccuracies, making on-time payments on your credit accounts or opening a secured credit card or credit-builder loan (sometimes called a credit-builder CD) with a local bank or credit union to help improve your credit.
India DavisArrow RightEditor, Credit Cards
India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has…
Courtney MihocikArrow RightSenior Editor, Credit Cards
Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at…
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
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