10 Best Credit Cards for Bad Credit of April 2024

Best Bad Credit Credit Cards in 2024

Best Unsecured Card: Mission Lane Visa® Credit Card

Why we chose it: Unlike many cards designed for people with bad credit, the Mission Lane Visa does not require a security deposit to open, making it more accessible to people without cash to put down up front.

Best for a Low Security Deposit: Capital One Platinum Secured Credit Card

Why we chose it: For most secured cards, your credit limit is equal to the amount of your security deposit. But with the Capital One Platinum Secured Credit Card, you can get an initial credit line of $200 with a deposit as low as $49, based on your eligibility. Read our Capital One Platinum Secured Credit Card review.

Best Balance Transfer Offer: Discover it® Secured Credit Card

Why we chose it: Balance transfer offers are typically reserved for applicants with good credit, but the Discover it Secured Credit Card offers a reduced APR on balance transfers for a short period of time—helping people in debt save on interest. Read our Discover it® Secured Credit Card review.

Best for No Credit Check: OpenSky® Secured Visa® Credit Card

Why we chose it: The OpenSky Secured Visa Credit Card is unique as it doesn’t require a credit check to qualify. Despite this fact, the issuer will still report your payments to all three major credit bureaus, helping you build your score if used responsibly. Read our OpenSky Secured Visa Credit Card review.

Best Credit-Building Opportunity: Self – Credit Builder Account with Secured Visa® Credit Card

Why we chose it: This unique credit card is only available to people with a Credit Builder Account with Self, meaning you’ll build credit via both a credit builder loan and your credit card.

Best for Automatic Payments: Chime Credit Builder Secured Visa® Credit Card

Why we chose it: The Chime Credit Builder Secured Visa card requires cardholders to deposit money into a Chime Online Checking Account, but that amount becomes your credit limit rather than requiring a security deposit. With no official set credit limit, you won’t have a high credit utilization to hurt your score, and you can set up automatic payments from your Credit Builder balance so you never leave a bill unpaid. Read our Chime Credit Builder Secured Visa Credit Card review.

Best for Low Interest: First Progress Platinum Prestige Mastercard® Secured Credit Card

Why we chose it: If you expect you’ll need to carry a balance on your credit card, it’s important to find a card with a low interest rate—a tough search if you have bad credit. But the First Progress Platinum Prestige offers a low APR for any card, especially among those designed for poor credit. Read our First Progress Platinum Prestige Mastercard Secured Credit Card review.

Best for Flat-Rate Rewards: Capital One Quicksilver Secured Cash Rewards Credit Card

Why we chose it: Most cards for bad credit don’t earn rewards, or if they do, it’s a low rate. The Capital One Quicksilver Secured Cash Rewards Credit Card, on the other hand, earns 1.5% cash back on all purchases, which is competitive with some of the best flat-rate rewards cards. Surprisingly, you also earn 5% back on hotels and rental cars booked through Capital One Travel. Read our Capital One Quicksilver Secured Cash Rewards Credit Card review.

Best for Cash Back: Bank of America® Customized Cash Rewards Secured Credit Card

Why we chose it: If you’re ready to get into the rewards game, bad credit doesn’t have to hold you back. The Bank of America Customized Cash Rewards Secured card offers a competitive rate of cash back on a variety of everyday categories.

Best Store Card: Amazon Secured Card

Why we chose it: The Amazon Secured Card combines the potential to earn rewards on Amazon purchases with a low fixed APR and affordable fees. You can only use the card at Amazon, but frequent shoppers can still get plenty of value. Read our Amazon Secured Card review.

A Closer Look at the Best Bad Credit Credit Cards

Best Unsecured Card: Mission Lane Visa Credit Card

Why we love this card: Most credit cards for bad credit require users to put down a security deposit as collateral, which can be a difficult ask for people without much cash on hand. The Mission Lane Visa offers an unsecured path to building credit for people with poor scores.

Who should have this in their wallet: You should sign up for this credit card if you can’t afford to put down a security deposit of $200 or more but still want the opportunity to open a card to build credit. Just keep in mind that you won’t earn any kind of rewards, and you could be charged an annual fee.

Other cards to consider: While unsecured cards for bad credit are hard to find, a few options are still available. The Credit One Bank® Platinum Visa® for Rebuilding Credit is one good option, as it offers cash back rewards. The drawback is that you’ll be charged a $75 annual fee the first year and $99 thereafter (billed at $8.25 per month).

Best for a Low Security Deposit: Capital One Platinum Secured Credit Card

Why we love this card: The Capital One Platinum Secured Credit Card does require a security deposit, but for some applicants, you might be able to qualify for a $200 initial credit line with a deposit as low as $49. Since most cards require you to pay $200 to unlock a $200 credit limit, it can be a cheaper option if you are eligible. You can also see if you’re preapproved without a hard credit check and view your terms.

Who should have this in their wallet: If you qualify for a low security deposit, the Capital One Platinum Secured can be a good option for people who cannot afford a high deposit amount but still want more available credit. Plus, Capital One offers the ability to graduate to an unsecured card if you demonstrate on-time payments.

Other cards to consider: If you want to skip a security deposit entirely, the unsecured Capital One Platinum Credit Card offers similar terms to the Platinum Secured but without the deposit requirement. Qualifying might be more difficult, but you can use Capital One’s preapproval tool to check your eligibility.

Best Balance Transfer Offer: Discover it Secured Credit Card

Why we love this card: If you have bad credit, it might be because you’re carrying debt that you’re struggling to pay off. A balance transfer is a great way to work toward paying off that balance, but the best promotional APRs are typically limited to people with good or excellent credit. The Discover it Secured Credit Card offers a low intro APR on balance transfers even to people with bad credit, plus the opportunity to earn some cash back.

Who should have this in their wallet: Cardholders with credit card debt on another card that charges a high interest rate can transfer their balance to the Discover it Secured Credit Card during the promotional period and chip away at the balance while accruing less in interest charges.

Other cards to consider: Promotional APRs on balance transfers are a rarity among cards for bad credit, but a few alternatives for earning cash back do exist. The Capital One Quicksilver Secured card is a great choice for earning rewards on everyday purchases.

Best for No Credit Check: OpenSky Secured Visa Credit Card

Why we love this card: The OpenSky Secured Visa Credit Card does not perform a credit check to approve you for the card, so you don’t have to worry about your credit history impacting your approval odds. OpenSky will still report your payments to the three major credit bureaus too, so your score can improve with on-time payments. Plus, you can earn up to 10% cash back rewards on purchases at over 40,000 retailers.

Who should have this in their wallet: Applicants with prior bankruptcies, defaults or other negative marks on their credit history can still qualify for this card.

Other cards to consider: Both the Chime Credit Builder Secured Visa Credit Card and Self – Credit Builder Account with Secured Visa are available without a credit check.

Best Credit-Building Opportunity: Self – Credit Builder Account with Secured Visa Credit Card

Why we love this card: To qualify for the Self – Credit Builder Account with Secured Visa Credit Card, you have to have a Credit Builder Account with Self. Having both an installment loan and revolving credit can help boost your score by improving your credit mix and adding more positive payment history.

Who should have this in their wallet: Applicants who are considering a credit builder loan to help them improve their scores should consider Self, as they can qualify for the Self Secured Visa card and boost their score even further.

Other cards to consider: If you don’t want to take out a credit builder loan, consider the Chime Credit Builder Secured Visa. It also uses funds from an existing account that’s linked to fund your credit line, but it works with a checking account instead.

Best for Automatic Payments: Chime Credit Builder Secured Visa Credit Card

Why we love this card: The Chime Credit Builder Secured Visa almost guarantees you’ll be responsible with your payments, as you can only borrow what you deposit from your Chime Checking Account into your Credit Builder account. You can also set up your payments to automatically process from your Credit Builder account balance.

Who should have this in their wallet: Cardholders who want to build their score but are worried about making on-time payments responsibly can benefit from the hands-off nature of the Chime Credit Builder Secured Visa.

Other cards to consider: Many credit cards allow you to set up automatic payments to cover your balance, but you’ll have to be responsible for making sure there is enough in your account each month to cover the cost. The Capital One Platinum Secured Credit Cards is one such option, as you can opt into the autopay feature on your mobile app.

Best for Low Interest: First Progress Platinum Prestige Mastercard Secured Credit Card

Why we love this card: The First Progress Platinum Prestige Mastercard has a low APR for any credit card, but especially those designed for bad credit. Plus, you’ll have the opportunity to earn 1% cash back on credit card payments.

Who should have this in their wallet: Any cardholder who anticipates they’ll have to carry a balance can benefit from this card, as the low interest rate can significantly reduce the amount you owe.

Other cards to consider: You should always aim to avoid carrying a balance on your credit card if possible, as high interest rates make doing so pricey. But if you can’t avoid it, a card with a lower interest rate can save you money. The Amazon Secured Card is a great option thanks to its fixed 10% interest rate, though you can only use the card at Amazon.

Best for Flat-Rate Rewards: Capital One Quicksilver Secured Cash Rewards Credit Card

Why we love this card: The Capital One Quicksilver Secured offers a top-notch rewards rate for a secured card: 1.5% cash back on all purchases, plus 5% back on hotels and rental cars booked through Capital One Travel. Even better, if you make your payments on time, you can qualify to upgrade to the unsecured Quicksilver card.

Who should have this in their wallet: Cardholders who want to earn a competitive, flat rate of cash back on all purchases, without having to pay attention to bonus categories, can benefit from this card.

Other cards to consider: Depending on where you spend the most money, you might be able to earn more from a card that offers high rewards rates on certain bonus categories. The Bank of America Customized Cash Rewards Secured card offers a flexible earning scheme with a higher rate in certain categories of your choice.

Best for Cash Back: Bank of America Customized Cash Rewards Secured Credit Card

Why we love this card: Despite not charging an annual fee, the Bank of America Customized Cash Rewards Secured card offers a generous cash back rate on everyday purchases that you can customize to your spending habits. Your 2% and 3% categories are subject to a $2,500 purchase limit each quarter (then 1%), but since most secured cards have a low credit limit, this won’t pose too much of a problem.

Who should have this in their wallet: If you’re interested in earning rewards but don’t yet have the credit score to apply for the most popular rewards credit cards, this card can be a great entry into the space.

Other cards to consider: Depending on the security deposit you’re able to put down, your credit limit could be as low as $200 with this card—which can inhibit your ability to earn much in rewards. If you can’t afford a higher deposit, consider a card that allows you to build your score with a lower investment and lets you upgrade to a rewards card down the line, like the Capital One Platinum Secured Card.

Best Store Card: Amazon Secured Card

Why we love this card: Despite the fact that it can only be used at Amazon, the Amazon Secured Card offers benefits that make it a great choice for even infrequent shoppers. Its 10% fixed APR is one of the lowest available on a card for bad credit, and it only charges up to a $5 late fee.

Who should have this in their wallet: Cardholders who shop frequently with Amazon and have a Prime membership can use this card to earn rewards. If you ever need to carry a balance, the low fixed APR can save you money on interest.

Other cards to consider: If you don’t frequently shop at Amazon, a store card is probably not the best choice for you. The Bank of America Customized Cash Rewards Secured card offers online shopping as one of its choice categories, making it a more flexible option.

Do I Need a Credit Card for Bad Credit?

Your credit score is a tool lenders use to determine how much of a risk you pose if they were to lend you money. For this reason, if your score is low, you’ll be less likely to qualify for a loan or credit card.

Credit cards for bad credit get around this barrier by introducing terms that mitigate that risk, whether that be collateral in the form of a security deposit, a low credit limit or a high interest rate.

If you make your payments on time and improve your score, the bank or credit union might be more willing to extend you a higher credit line, the opportunity to earn rewards or other perks.

“If you have bad credit, getting started on improving it is the most important thing you can do. Choose a card that meets your basic needs and start making on-time payments as soon as possible so you can boost your score faster and have more options available to you in the future.”

— Emily Sherman

What Causes Bad Credit?

Many actions can cause damage to your credit score, from defaulting on payments to borrowing too much. Based on the five factors used by FICO to determine your credit score, it might be low if you:

• Have a history of late payments or default. If you pay your bill more than 30 days past the due date, it can harm your credit score. If you stop making payments, your debt may go into default, which lowers your score even further.
• You have declared bankruptcy in the past. Declaring bankruptcy can be a necessary strategy for getting out of debt, but it has a significant negative impact on your credit score.
• You have a high credit utilization ratio. Your credit utilization ratio, or the amount you borrow versus the amount available to you, is an important part of your score. If you borrow too much money, it can negatively impact your credit.
• You don’t have a credit history. In order to build a good credit score, you need a history of on-time payments and some amount of credit issued to you. If you’ve never had a loan or credit card in your name, credit bureaus can’t calculate a score.

How to Get a Credit Card With Bad Credit

If you have bad credit and want a credit card that will allow you to improve it, follow these steps to get one:

• Check your credit score. The first step in any credit card application should be to know your credit score. Most banks offer free credit score tracking tools, and you can also get a free copy of your credit report from each of the three major credit bureaus once per year to get a more in-depth view of your history and what caused your low score. With these facts in mind, you can narrow down options that will accept you.
• Research options. People with bad credit can take a few different routes to get a credit card. For one, you can apply for a secured card, which requires you to put up a deposit that will become your credit limit. If you don’t have the upfront funds, you could consider a non-secured card for bad credit or a store credit card, which often have lower eligibility requirements.
• Try prequalifying. The last thing you want is to apply for a credit card and have a hard pull on your score, only for your application to be denied. Some issuers offer prequalification tools that allow you to see if you are eligible for their cards with only a soft pull to your score.
• Save for fees or security deposits. Many credit cards for bad credit require a security deposit, which is typically equal to your initial credit limit. A higher credit limit can result in a higher credit score, so you’ll want to save for this upfront cost ahead of time.
• Consider becoming an authorized user. If you don’t immediately qualify for a credit card, you might be able to improve your score by becoming an authorized user on a friend or family member’s card. You’ll get credit for their on-time payments and credit limit this way without having to qualify on your own. The primary cardholder assumes some risk when adding an authorized user, though, so you’ll have to find someone you trust.

What’s the Easiest Credit Card To Get Approved For?

The reason credit card issuers use a credit score to determine if you are eligible for a card is because it tells them how much risk they take on lending you money. A good credit score shows you are the kind of person who pays your bills on time and can responsibly manage a high credit limit, while a low score can point to a history of missed payments.

For that reason, the easiest credit cards to get approved for are secured credit cards, or cards that require a cash deposit to open. When you open a secured credit card, you’ll be asked to put up a deposit of a few hundred to a few thousand dollars that serves as collateral if you are unable to pay what you owe. The amount you deposit will typically be the same amount as your credit limit. Because there is enough money on hold for the issuer to cover as much as you borrow, they take less risk and can accept most applicants. An issuer may then refund your deposit if you demonstrate responsible habits.

A few other cards with lower eligibility requirements are unsecured, but the card issuer might charge higher interest rates or fees to accommodate the additional risk in lending you money without collateral. Store credit cards for particular retailers are one example of a kind of credit card with more lax qualifications, though they usually come with high APR and are best used for purchases made with the retailer.

When To Use A Credit Card For Bad Credit

If you end up getting a credit card for bad credit, it’s important to use it responsibly in order to improve your score. Follow these tips for using the card:

Make Small, Regular Purchases Each Month

To improve your credit score, you’ll need to regularly make on-time payments, which means you’ll need to be using your card frequently as well. Still, you should avoid charging more than 30% of your credit limit to your card to keep your credit utilization at a healthy ratio. Since many bad credit credit cards have relatively low limits, you can do both of these things by choosing a small, regular purchase like a recurring subscription to charge to your card and pay off on time each month.

Use the Card at Retailers That Earn Rewards

While many cards for bad credit don’t have a rewards program, some do offer the opportunity to earn some points or cash back, usually in a specific category of spending or at a particular retailer. If you have an Amazon Store Card, for instance, you’ll want to use it when you make a purchase with the online retailer in order to earn cash back.

Avoid Larger Purchases That Take Time To Pay Off

Most credit cards for bad credit charge high interest rates, so you’ll want to avoid carrying a balance if at all possible. If you have a large purchase that will take you time to pay down, make sure you are prepared to pay the extra interest charges associated with doing so over time.

How Do I Choose the Best Bad Credit Credit Card for Me?

While rewards are a nice perk, the most important benefits of a credit card for bad credit are those that will help you establish a positive payment history and build your credit score. Before you choose a credit card for bad credit, consider the interest rate, security deposit and opportunities to increase your credit line.

Interest Rate

Carrying a balance results in interest charges racking up that add to your debt and make it harder to pay off. To avoid being stuck in a situation where you cannot afford your payments, choose a card with a lower interest rate.

Minimum and Maximum Security Deposit

If you are planning to apply for a secured credit card, pay close attention to the security deposit requirements. You’ll want a security deposit you can afford—with not too high of a minimum deposit requirement—but also the opportunity to access the credit you need if you have more funds on hand—meaning not too low of a maximum deposit, either.

Opportunities to Increase Your Credit Line

You can improve your credit score by having more credit available to you, as it helps to reduce your credit utilization ratio. Choose a card with regular reviews for an increased credit limit to work toward this goal.

What Credit Cards Should I Wait To Consider?

If you have a bad credit score, odds are you won’t qualify for the most competitive rewards credit cards that earn travel points or cash back. While you might be able to get a nominal amount of rewards on some secured cards, avoid applying for cards with flashy perks.

Chime Credit Builder Secured Visa® Credit Card details and disclosures:

• Chime® is a financial technology company, not a bank.
• *No Interest: Out of network ATM withdrawal fees and over the counter advance fees may apply. See here for details.
• **No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
• The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
• To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
• ***Safer Credit Building – On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.