5 Best Credit Cards for Low Credit Scores (April 2024)

Finding the best credit cards for low credit scores doesn’t have to feel like an impossible task. In today’s market, credit cards exist for every credit score.

Those toward the bottom of the credit score ranks often find it hard to even get a credit card, let alone one with the features they want. But it’s not impossible to find a credit card that offers a low APR, valuable benefits, no annual fee, and even a rewards program.

Use the following links to choose a card for your score or one with the features you want most:

By Credit Score: 0 | 350 – 500 | 500 – 600 | 600+
By Feature: Rewards | Student | Business | No Annual Fee

Getting approved for a credit card when you have no credit at all might seem an insurmountable task. Here are two credit cards that offer an opportunity for those with limited or no credit history to speak of. Be aware that you will almost certainly receive a low initial credit limit, but with responsible card use, that can quickly change.

The Capital One Platinum Credit Card is a full-featured credit card that comes with no annual fee. It has few frills, as you might expect, but Capital One is known for approving applicants who have zero credit history for this card. One thing you will need is an income, although it’s unclear how much you need to earn to qualify.

The Capital One Platinum Credit Card is issued on the Mastercard network, and it comes with a fairly high variable APR. That means you should try to pay your balance in full each month to avoid racking up interest charges. Even though you will likely have a low initial credit limit, you’ll be considered for a credit limit increase by making your first six payments on time.

Another option for those with no or limited credit is a secured credit card. A secured card uses funds placed into an account as a security deposit before the card is issued. The Capital One Platinum Secured Credit Card requires a deposit amount that is based on your creditworthiness.

This secured card then acts just like a credit card, allowing you to use it anywhere Mastercard is accepted. There’s no annual fee, but it does have a high APR — we suggest you avoid this unnecessary expense and pay off the balance each billing cycle.

The best part about this card is you’ll be building a credit history since Capital One reports your payments and usage to the three major credit bureaus. That means if you make payments on time and use the card responsibly, you’ll soon reap the benefits.

When talking about credit scores, the majority of people are referring to the FICO credit scoring system which ranges from 300 to 850. The range is then broken into five categories; Poor, Fair, Good, Very Good, and Excellent.

A score of between 350 and 500 is, as you might guess, poor. Fortunately, there are still some cards designed for people with credit scores in this range.

Credit cards created for those with very poor credit scores are not where you’re going to find a lot of rewards or perks. Instead, what you’ll find with the Indigo® Mastercard® is a full-service card that’s designed to help you establish or rebuild your credit. This is an unsecured credit card, so no security deposit is required, and it can be used anywhere Mastercard is accepted.

Depending on your score and your credit history, you could pay a $0 annual fee for this card, or worst-case scenario, a $99 annual fee. Your payment history is reported to the three major credit bureaus, so timely payments can mean a commensurate increase in your credit score.

The Discover it® Secured Credit Card is a great choice for anyone with a poor credit score. It is regularly ranked as one of the best secured credit card options available, thanks to its cash back rewards, low interest rate, and $0 annual fee.

Discover will periodically review your account to see whether you qualify to upgrade to an unsecured account, after which you’ll receive your deposit back. You must pay your monthly bill on time to be considered for credit limit increases and graduation to an unsecured card.

Having a credit score in the 500 to 600 range is still considered bad, but it shows you’re working your way up. Some card issuers want to help those they see as making improvements to their credit profiles. The subprime cards you’ll find here won’t have the premium perks or rewards of prime cards, but they’re good options for helping you along your credit-rebuilding journey.

While the unsecured Total Visa® Card is available to even those with poor, limited, or no credit, it’s probably not the right card for everyone. Sure, there’s no deposit required as with secured credit cards, but there is a program fee just to get started. And that’s on top of the first-year annual fee that gets deducted from your credit limit right away. If you decide to keep the card into the second year, another annual fee plus a monthly fee will apply.

Still, if this is your only way to get a full-service Visa card that can help you start building your credit, the cost might be worth it. Consider keeping this card for the first year while diligently making your payments on time. You know what you’ll be paying in fees, and if you use the card responsibly, you can probably develop a good enough credit history to qualify for a less punitive card a year down the road.

As with the previous card, the Milestone® Mastercard® is intended for those credit-challenged folks who don’t mind paying a fee for an unsecured full-service credit card.

As a card intended for credit building, the Milestone® Mastercard® does serve its purpose. It has a middle-of-the-road APR, and your payment history is reported to the three major credit bureaus. If you keep the card for a year and ensure you make timely payments, you’re likely to improve your credit score enough to jump to a more attractive card.

Having a credit score greater than 600 places you into the range considered “fair” by many card issuers. That means your options for more attractive cards begin to improve.

You’ll start seeing cards that offer more competitive APRs, fewer fees, and even reward points. Here are a couple of cards you may want to consider.

This is an unsecured credit card for folks who still may have borderline credit scores but are working their way up the credit ladder. The Capital One QuicksilverOne Cash Rewards Credit Card offers unlimited cash back in exchange for a small annual fee.

Paying your bill on time for a minimum of six months will qualify you to be considered for a higher credit limit. You’ll also get all of the benefits that come with being a Capital One cardholder, including virtual card numbers from Eno, fraud alerts, and tips for improving your credit history.

The Fortiva® Mastercard® Credit Card is another card that provides cash back rewards on select purchases. It charges an annual fee, but that’s the case with most subprime credit cards.

This card can help you improve your credit when you make your payments on time and keep your balance relatively low compared to its limit. Those two actions have the largest influence on your credit scores, so maintaining your account in good standing over a long period will surely benefit your credit reports and scores.

We don’t usually think of rewards when talking about credit cards for consumers with low credit scores. But rewards programs for bad credit are becoming increasingly common as the competition for your business heats up.

The Bank of America® Customized Cash Rewards Secured Credit Card is a true diamond in the rough. You’ll earn high cash back rewards with rates comparable to those of cards for good credit scores without paying an annual fee.

Bank of America will periodically review your account to see whether you qualify to have your deposit returned. You’ll receive a free FICO Score each month to keep track of your credit-building progress.

Students can have some of the biggest challenges getting a reasonable credit card because they usually have limited or no credit history. But students are also an attractive demographic for card issuers since it’s an opportunity to establish loyalty early on.

Student credit cards are a great way to begin building credit while taking advantage of the perks offered by some student cards.

The Discover it® Student Cash Back card is an ideal card for students who want to build credit and take advantage of rewards along the way. The incredible cash back rewards on certain categories each quarter makes this feel like a premium rewards card.

If the cash back bonuses aren’t enough of an incentive, this card offers a reward in the form of statement credit for referring your friends if they’re approved. You can also track your FICO score for free on your monthly account statement, your mobile device, or online.

A credit card is a must if you’re running a small business, but what if you’re saddled with a low credit score? There are card issuers out there who recognize the needs of business owners and want to help you succeed. Features like reward points and no annual fee make it even better.

As a business owner, you need all the help you can get. Capital One is there for you with the Capital One® Spark® Classic for Business — a credit card with no annual fee and cash back rewards for your business. This is a card intended for business owners with average, fair, and limited credit scores.

In addition to the unlimited cash back rewards, this card also offers free employee cards, itemized spending reports, and experienced small business customer service. If you’re looking for a business credit card with a low credit score, this is a great option.

When you have a low credit score, rebuilding your credit means taking advantage of saving money wherever you can. Choosing a credit card with no annual fee is a great place to start. If you want a full-service credit card without the overhead, you don’t have to look very far.

The Capital One Platinum Credit Card is a true starter card that gives you all the advantages of a Mastercard branded credit card. The credit limit you receive upon being approved for the Capital One Platinum Credit Card depends on your actual credit history, but the company says it will give you access to a higher credit line after you make your first six payments on time.

The interest rate for this card is on the high side, so you should try to avoid carrying a balance. Still, as a credit builder with no annual fee, it’s a good choice for those with a low credit score.

Credit cards intended for rebuilding credit have a few things in common, but some differences as well. For instance, there are both secured and unsecured cards designed for rebuilding credit scores, and which you choose will depend on factors like how bad your credit score is to begin with.

For those with the worst scores, secured credit cards may be their only option. Howevaer, if you can qualify for an unsecured card, you won’t need to come up with the $300 or so required for a security deposit.

The most common features of cards for rebuilding credit include one or more of the following:

• They generally have a higher than average APR.
• The credit limit will be lower than for most typical credit cards.
• Many will charge an annual fee (check the ones we’ve recommended that don’t).
• Some charge a non-refundable activation or program fee once you’re approved.
• A few offer reward points, but most do not.
• Almost all of them will report payment history to at least one credit bureau.

It’s this final point that’s most important when talking about cards for rebuilding credit. To raise your credit score, the credit bureaus need to see you are using your credit wisely and making payments on time. Rebuilding your score to a respectable level can take months or years depending on how bad your credit score is and how many negative entries you must overcome.

Climbing your way back up the credit ladder isn’t easy, but with a little foresight and diligence, it can be done. The cards we’ve recommended here are all good choices, but the right one for you depends largely on your personal credit history and needs.

You may have heard or read stories about people whose credit score was negatively affected by opening a new credit card. Many of these accounts are anecdotal, but the confusion around the impact of opening a new card persists. Let’s try to clear the air.

Filling out an application for a credit card authorizes the card issuer to request a copy of your credit report. That request is called a hard inquiry – meaning your credit report is pulled for the express purpose of providing you credit. In contrast, a soft inquiry is when information about you is being verified for reasons other than a credit card or loan.

A hard inquiry affects the new credit portion of your score, which counts for 10% of your total credit score. It can potentially lower your credit score by a few points for a short period of time. However, if you apply for multiple credit cards, it can have a larger impact. But let’s look a little deeper.

Another part of your FICO score, 15% to be exact, is your length of credit history. The credit bureaus reward a long credit history, and they consider the average age of all your accounts.

If you get a new card, it stands to reason that the overall age of your accounts will drop, and this can also affect your score.

Those two factors combined have a potential impact on 25% of your total score, but there’s more to consider.

Credit utilization, or the amount of debt you have compared with the total available, comprises 30% of your score. If you already have credit card debt, opening a new card can decrease your utilization rate by increasing the total credit you have available. The lower your utilization rate, the better it is for your score.

So to summarize, opening a new credit card can have both a short-term negative impact and a potential positive impact, depending on your personal credit history and circumstances. In the end, it should not be enough to deter you from getting a card that otherwise makes financial sense to have.

A common misconception is that maintaining a balance on a credit card will improve your credit score. Not only is this simply untrue, but it also costs money. That’s because every dollar you carry over from the previous month costs you in interest.

So where did this myth derive from? Possibly from the idea that using your credit card to make purchases will show it is current, which can increase your score. But carrying a balance is not a factor considered by the credit rating agencies.

Payment history is the single most important factor in determining your credit score, accounting for 35% of the total. So, far more important than carrying a balance forward is making payments on time.

If you charge $1,000 on your card each month and pay it in full during the current billing cycle, you would be seen as an active card user who knows how to manage debt.

Paying off your card balances also helps you maintain a good utilization ratio since that’s a function of your balance compared to your total available credit. The lower your balance, the better your utilization rate.

In the case of a card you keep for emergencies and don’t use regularly, it may be worth making a small purchase or two to keep it active. Active and responsible card usage will only have a positive impact on your score.

Another point of confusion when talking credit scores is the impact, if any, of making just the minimum payment. It seems like this should have some sort of negative effect, right? The good news is that if you make the minimum payment by the due date, it won’t affect your score. But the story doesn’t end there.

Making the minimum payment on a card when you’re tight on cash one month isn’t the end of the world. No corporate bean-counter is going to draw a red circle around your name and keep a close eye on you for the next six months. What you really need to worry about though are the side effects of doing this.

The first side effect is that it’s going to cost you — in interest. Every dollar you carry forward you pay interest on.

The next side effect is the potential to increase your utilization ratio. If you already have a balance and this minimum payment brings you over 30% utilization, your credit score could take a hit. But perhaps the most important side effect is the psychological one.

If you begin to develop a habit of postponing your planned payment amount, you could fall into the trap of carrying debt from month to month — and getting used to it. Soon it becomes second nature.

Let’s say you only pay the minimum payment each month, but you charge more than that to your card. This will cause your balance to increase and will cost you more to service your debt. That means you’ll have less to pay toward the principal amount.

Ultimately, if your utilization rate goes too high or you fall behind, this can hurt your score in dramatic ways. It’s best to pay the most you can each billing cycle and preferably the entire amount you owe.

Understanding the subtleties of smart credit and debt use can be life-changing. It’s a matter of making credit work for you instead of the other way around.

This involves having a clear view of your financial position, choosing a credit card (or cards) that fit your personal circumstances, and maintaining a keen awareness of your credit usage. Many people sink into consumer debt due to apathy or inattentiveness rather than external circumstances.

Choosing a credit card that can help you build or rebuild your credit is a way to take charge of your personal finances and start building good credit habits. It’s an opportunity to change patterns of spending or credit misuse.

Pledge to practice a few good habits with your credit, such as sticking to a budget, paying more than the minimum amount due, and always paying on time. When you’ve mastered these habits, you can move on to things like lowering your credit utilization ratio, not spending just to get reward points, and work toward getting the best APR offer available to you.

Good credit card use is a skill that’s developed with practice. If you have habits that haven’t served you in the past, now is the time to change them. Any of the cards we’ve recommended here can help you on your journey toward a better credit score, but only you can choose the path to get there.