Content provided by Bankrate.com. New York Post and its content partners earn compensation from the affiliate companies that appear below. This content does not include all available financial offers, and compensation may impact how and where links appear in the content.
If you’re struggling with your credit, you know how difficult it can be to get approved for a credit card. But there are several options geared for those working to build or rebuild their credit. The right card can help you afford everyday purchases, improve your payment history, and boost your credit score.
We reviewed the top card options for bad credit to help you decide which is the best fit for your situation.
Best credit cards for bad credit
We found the top cards for you based on annual fees, interest rates, upgrade potential, approval odds, and credit-building features.
- Capital One Platinum Credit Card
- Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- OpenSky® Secured Visa® Credit Card
- Capital One Quicksilver Secured Credit Card
- Chime Credit Builder Secured Visa® Credit Card
- Discover it® Secured Credit Card
- Navy Federal Credit Union Rewards® Secured Card
Capital One Platinum Credit Card
The Capital One Platinum Credit Card is one of the few unsecured cards on this list. It doesn’t require a security deposit or charge an annual fee.
The Platinum card won’t offer rewards or extras — focusing solely on helping you build your credit. This card will report your account history to the credit bureaus to help build your credit score. Plus, after six months, Capital One will review your account to see if you qualify for a higher credit limit.
| Pros | Cons |
|---|---|
|
|
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 card stands out because it lacks fees, security deposit, or strict credit requirements. Unlike secured cards, there’s no security deposit to worry about.
Unlike most rewards credit cards, you don’t need a credit score to apply for the Petal 2 card. Petal uses its underwriting model to accept applicants, allowing them to approve those who may not qualify for other cards.
You can also earn up to 1.5% cash back on all eligible purchases — rare among other cards geared towards those with poor credit. Read our full review of the Petal 2 card here.
| Pros | Cons |
|---|---|
|
|
OpenSky® Secured Visa® Credit Card
The OpenSky Secured Visa is one of the easiest credit cards to get for those with poor credit or no credit history.
A minimum $200 security deposit to open a card serves as your credit limit. You can deposit up to $3,000, making keeping a lower utilization ratio easier.
This card comes with a $35 annual fee. This doesn’t sound like much, but most other cards in this category don’t charge an annual fee. Like other secured cards, there are no rewards or welcome bonuses.
| Pros | Cons |
|---|---|
|
|
Capital One Quicksilver Secured Credit Card
The Capital One Quicksilver Secured Credit Card is one of the few secured cards that come with cash back. You can earn 1.5% back on all eligible purchases and unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
This card doesn’t charge an annual fee and requires a refundable security deposit of $200. After making regular on-time payments, you may be eligible for an upgrade in as little as five months.
| Pros | Cons |
|---|---|
|
|
Chime Credit Builder Secured Visa® Credit Card
Chime offers a unique twist on a secured card — geared at helping consumers build credit.
Your card’s credit limit is secured by deposits made to your Chime Checking Account, which acts as a security deposit on the card.
While you won’t earn any rewards, you won’t have to worry about fees or interest. Plus, there’s no credit check needed to apply.
| Pros | Cons |
|---|---|
|
|
Discover it® Secured Credit Card
This card offers rare benefits to those working on their credit — like cash back on every purchase.
There are automatic account reviews starting at seven months to upgrade you to an unsecured card. You’ll also earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter, then 1%). You’ll earn 1% back on everything else.
This card’s cash back gives it an advantage over most other options geared for bad credit.
| Pros | Cons |
|---|---|
|
|
Navy Federal Credit Union Rewards® Secured Card
Navy Federal’s secured card is only available to members of the military or related communities (including veterans, contractors, and others). But it still warrants a mention for those who qualify.
This is one of the few cards that doesn’t charge balance transfer fees. If you need to pay off debt from another card, this may be your best option. This card also offers 1X points on all purchases, which is rare for a secured card.
This card also comes with no annual fee and account reviews at three and six months to see if you can upgrade to an unsecured card.
| Pros | Cons |
|---|---|
|
|
What affects credit card approval odds?
Card issuers examine a mix of factors before approving an application. They do so to estimate the likelihood your card will be repaid responsibly. Knowing these factors can help you find the right card for you.
- Credit score: A good credit score qualifies you for better credit cards, which means you’ll likely be offered better terms and rewards for the cards you apply for.
- Credit history: Responsible payments on your other cards can show reliability and improve your chances of getting approved. Plus, the longer you’ve been using credit, the more favorably lenders may view you.
- Inquiries: Applying for too many new cards in a short period can indicate higher risk. That’s why it’s a good idea to spread out new applications over time.
- Credit utilization: Using a high percentage of total available balances can signal risk even if payments are on time. It’s smart to keep your credit usage below 30% of your total credit limit.
- Income and employment: Steady income can indicate you can responsibly manage your bills.
- Security deposit: If you’re applying for a secured card, you may have greater approval odds.
How cards for bad credit differ from other cards
Those with a FICO credit score between 300 and 580 are considered to have poor credit. Cards designed for these consumers are a little different from other cards. These starter cards tend to offer:
- Lower credit limits
- High annual fees or maintenance costs
- Lower approval barriers regarding credit or income
- Focus on credit building over perks or rewards
- Refundable security deposits
- Higher APRs and fees
Because issuers take on more perceived risk, starter cards offer fewer perks and access to credit until cardholders demonstrate responsible use.
Graduating to rewards cards down the road becomes possible only after first establishing good credit through one of the cards above. Think of it as the first rung on the credit-building ladder.
How to build credit using your credit card
Here are key habits to establish with your new card as you build or rebuild your credit:
- Make purchases strategically: Use the card lightly at first for affordable purchases you can definitely pay off each month. Set up autopay or payment reminders so you don’t forget.
- Pay in full and on time: Always pay at least the minimum (ideally the full balance) before each due date. A consistent solid payment history can boost your score.
- Keep balances low: Keeping your balance below 30% of your total credit limit shows you are managing credit responsibly.
The bottom line
Starter credit cards are right for borrowers who are ready to build their credit. The right card can help build your credit history, allowing you to move on to better cards, better terms, and lower borrowing costs.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.