- No security deposit required.
- Depending on your credit, you could have no annual fee.
- Potentially build credit.
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Updated April 25, 2024
Even if you have a limited credit history or poor credit, you can still get a credit card. Many credit cards for bad credit require a security deposit, and it’s rare to have introductory offers and rewards with credit cards for bad credit. But some cards will allow you to “upgrade” to unsecured credit after you make regular payments.
Our top recommendations
- Mission Lane Visa: Best for no deposit.
- card_name: Best for building credit.
- card_name: Best for no annual fee.
- card_name: Best for savers.
- card_name: Best for low security deposit.
- card_name: Best for rewards.
- First National Bank Business Edition® Secured Mastercard® Credit Card: Best for business owners.
Mission Lane Visa: Best for no deposit
Mission Lane Visa
Mission Lane Visa
Credit score
300
Annual fees
$0 to $59
Welcome bonus
None
Pros:
Cons:
- APR can be high.
- You might end up paying an annual fee.
- Foreign transaction fee.
If you’re hoping to build credit without getting a secured card, the Mission Lane Visa might be a good choice. The fact that this card is unsecured and available to those with limited credit is a selling point.
Of course, you pay for not having to put up a security deposit with an annual fee of up to $0 to $59 and an 29.99%-33.99% (Variable) APR. This card is best for improving your credit over the short term and then graduating to a more traditional unsecured credit card.
card_name: Best for building credit
Chime Credit Builder Visa® Credit Card
Chime Credit Builder Visa® Credit Card
Credit score
credit_score_needed
Annual fees
annual_fees
Welcome bonus
bonus_miles_full
Disclosure
Chime® is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card and the Chime Credit Builder Visa® Credit Card are issued by The Bancorp Bank, N.A. or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit and credit cards are accepted.
Pros:
- No minimum security deposit.
- Reports to the three major credit bureaus.
- No annual fee or interest charges.
Cons:
- You must have a Chime checking account.
- Direct deposit of at least $200 is required.
There’s no credit check with the card_name. Also, you don’t have to worry about interest because the amount you have on the card is your spending limit. Chime doesn’t report credit utilization(one part of the credit reporting mix), but it will report your on-time payments, helping you build a positive credit history.
This card is particularly useful for people who already bank with Chime and want to add a credit card to build credit.
card_name: Best for no annual fee
OpenSky® Plus Secured Visa® Credit Card
OpenSky® Plus Secured Visa® Credit Card
Credit score
credit_score_needed
Annual fees
annual_fees
Welcome bonus
bonus_miles_full
Pros:
- No annual fee.
- Reports to the three major credit bureaus.
- No credit check to apply.
Cons:
- High APR.
- Must have $300 for a security deposit.
- Foreign transaction fee.
The card_name is is one of the best credit cards for bad credit with no annual fee. You don’t need a credit check to apply, and payments are reported to major credit bureaus so that you can rebuild your credit.
The APR on this card is reg_apr,reg_apr_type, which is higher than some other cards on this list. The higher APR may also be why this card doesn’t require an annual fee. On the other hand, if you have $3,000 for the maximum security deposit, you will have that amount as a credit limit.
card_name: Best for savers
Self - Credit Builder Account Secured Visa(R) Credit Card
Self - Credit Builder Account Secured Visa(R) Credit Card
Credit score
credit_score_needed
Annual fees
annual_fees
Welcome bonus
bonus_miles_full
Pros:
- Relatively low APR.
- Reports to the three major credit bureaus.
- Helps you build savings.
Cons:
- Administrative fee to set up the account.
- You have to use the Credit Builder Account for three months to be eligible.
The card_name works alongside the Self Credit Builder Account, which is a loan you make payments on for two years (24 months). At the end of your term, you receive some money back. It’s a way to build credit while also building savings.
You add the card_name to your credit builder loan, and once you meet the minimum threshold for the loan, you can use your credit card to make payments. Making regular payments on the loan and paying off the credit card at the same time gives you extra weight in your credit reports to raise your score more quickly.
card_name: Best for low security deposit
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
Credit score
credit_score_needed
Annual fees
annual_fees
Welcome bonus
bonus_miles_full
Pros:
- Get your deposit back and upgrade to an unsecured card.
- Reports to the three major credit bureaus.
- Low security deposit requirements.
Cons:
- High APR.
- Low initial credit limit of $200.
With the card_name you can get up to $200 in credit with a security deposit as low as $49, depending on your credit score. Additionally, after a few months of positive history, you can potentially have your card converted to an unsecured card and get your deposit back.
Like many other secured credit cards, this one doesn’t offer much in the way of perks or incentives, and the initial credit limit may hinder its usefulness if its the card you rely on to pay bills. But it scores well for accessibility.
card_name: Best for rewards
Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards Credit Card
Credit score
credit_score_needed
Annual fees
annual_fees
Welcome bonus
bonus_miles_full
Pros:
- Get your deposit back and upgrade to an unsecured card.
- Reports to the three major credit bureaus.
- Earn cash back rewards.
Cons:
- High APR.
- Must have a deposit of $200.
The card_name is one of the few cards that allow those with poor credit to earn rewards. There’s no annual fee, and after a few months you can potentially get your deposit back and upgrade the card to an unsecured card.
The minimum deposit for this card is $200, though you can think of that as a down payment on the unsecured version of this card, which gets high marks as a flexible and useful cash-back rewards card.
First National Bank Business Edition® Secured Mastercard® Credit Card: Best for business owners
First National Bank Business Edition Secured Mastercard Credit Card
First National Bank Business Edition Secured Mastercard Credit Card
Credit score
300
Annual fees
$39
Welcome bonus
None
Pros:
- Earn interest on your security deposit.
- Some perks, like rental car coverage.
- Automatic rebates.
Cons:
- High APR.
- High security deposit.
- Annual fee.
Business owners can build credit with the help of the First National Bank Business Edition® Secured Mastercard® Credit Card. It comes with some traditional credit card perks like rental car coverage. Additionally, when you use the card and different partner retailers, you can get automatic rebates.
Unusually for a secured credit card, the First National Bank of Omaha requires you to put down 110% of your credit limit as a deposit. So if you go for the top tier credit limit of $100,000, you will have to give the bank $110,000 first.
Best credit cards for bad credit: Comparison
| Publisher PDP URL | Annual fees | Welcome bonus | Credit score |
|---|---|---|---|
Mission Lane Visa | $0 to $59 | None | 300 |
annual_fees | bonus_miles | credit_score_needed | |
annual_fees | bonus_miles | credit_score_needed | |
annual_fees | bonus_miles | credit_score_needed | |
annual_fees | bonus_miles | credit_score_needed | |
annual_fees | bonus_miles | credit_score_needed | |
First National Bank Business Edition® Secured Mastercard® Credit Card | $39 | None | 300 |
How we chose the best credit cards for bad credit 2024
We compared card offers based on the following criteria: Minimum credit requirements, introductory APR offers, rewards rates (if applicable), welcome offers (if applicable), variable APRs, annual fees, included consumer protections included, travel benefits and perks, travel insurance benefits and required credit rating.
Ultimately, we looked for credit cards that offer the most value to users. Cards were evaluated based on their fee structure, introductory interest rates, and regular variable APR. In all cases, benefits such as consumer protections and travel insurance perks were taken into account.
Choosing the best credit card for bad credit: Where to begin
As you look for a credit card for bad credit, it’s important to consider your situation and needs. In some cases, you might not be able to get a different card due to your credit score and other factors. Some items to review when choosing a card include:
- Eligibility: In general, you can get one of these cards with poor to fair credit, as well as limited credit history. Check your eligibility through pre-qualification to see if you can get a card.
- Security deposit: Pay attention to the security deposit requirements. Some cards require a higher deposit than others. Some cards require a security deposit equal to your desired credit line while others will provide a higher limit even with a smaller deposit.
- Upgrade to an unsecured card: Check to see if the card can be converted to an unsecured credit card after a few months. If you can see an increase in your limit, get your deposit back and have an unsecured card, that can be attractive.
- Reporting: Make sure the card reports to the major credit bureaus so your activity can help your credit score. Some secured cards are prepaid debit cards that don’t actually report, so won’t help you build or rebuild your credit.
How to tell if you need a credit card for bad credit
If you’ve been turned down for more traditional credit cards, that could be an indication that you don’t have an established credit history or that your credit score is too low to qualify. When you’ve been turned down for other cards, consider looking into a credit card for bad credit.
Secured vs. unsecured credit cards for bad credit
Many credit cards for bad credit are secured, meaning that you need to provide a security deposit as collateral. If you default on payments, the credit card issuer can keep your security deposit.
On the other hand, an unsecured card for bad credit is one that doesn’t require you to provide cash as a deposit. However, you might have a much lower credit limit with an unsecured card for bad credit. If you’re willing to provide more collateral, you could have a higher limit.
How to build your credit score with a credit card
Credit cards are ideal for building a good credit score because of how frequently your activity is reported to the major bureaus. The best way to potentially build credit with a card involves:
- Getting a credit card.
- Making regular purchases with the card.
- Ensuring that your balance doesn’t exceed 30% of your available credit line.
- Paying off the card in full each month and on time.
With this approach, you make regular, on-time payments, which can be a big boost to your score. Plus, a strategy that keeps your credit utilization low helps as well. Together, payment history and credit utilization account for 65% of your credit score.
Frequently asked questions (FAQs)
What is a bad credit score?
In general, a poor credit score is defined by FICO as anything below 580.
Can I get a credit card with a 500 credit score?
Yes, it’s possible to get a credit card with a 500 credit score, but you might need to provide a security deposit as collateral.
What's the lowest credit score to get a credit card?
There is no set lowest credit score. Some issuers specialize in offering credit cards to those with no credit history or bad credit. Some secured credit cards don’t even check your credit score.
Can you do a balance transfer with bad credit?
While it might be possible to find a balance transfer card with bad credit, it can be difficult. Many cards with the best balance transfer deals require good to excellent credit.
AP Buyline has partnered with CardRatings for our coverage of credit card products. AP Buyline and CardRatings may receive a commission from card issuers.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.