Best credit cards for bad credit of April 2024
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BLUEPRINT
Updated 6:55 p.m. UTC April 25, 2024
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Everyone makes mistakes. However when it comes to making financial missteps, an apology can’t help. That’s where credit cards for bad credit come in. Cards in this category have less strict underwriting criteria than other types of credit cards, making it easier to regain your financial footing through responsible card usage.
The best credit cards for bad credit will report to all three credit bureaus and some either offer a path to “graduate” from a secured card to an unsecured card and get your security deposit back — or in some cases, require a minimal deposit or no deposit at all. We analyzed a broad swath of credit cards in this category, from a variety of issuers, to curate a list of the very best credit cards for bad credit. Here are our selections.
However, be sure to compare the cards below to other credit cards in this category to view them outside of the context of just our list. Though there are a wide range of cards, our list may not have the best credit card for your particular credit profile or needs.
Best credit cards for bad credit
- Petal® 2 “Cash Back, No Fees” Visa® Credit Card*: Best credit card for bad credit.
- Discover it® Secured Credit Card: Best for graduating to an unsecured card.
- Capital One Platinum Secured Credit Card*: Best for potentially lower opening deposit.
- Petal® 1 “No Annual Fee” Visa® Credit Card*: Best for looking beyond traditional credit scores.
- Tomo Credit Card*: Best for newcomers to the U.S.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 35+ cards analyzed.
- 10 data points considered.
- 5-step fact-checking process.
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Discover it® Secured Credit Card
Best credit card for bad credit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
*The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for graduating to an unsecured card
Discover it® Secured Credit Card
Best for potentially lower opening deposit
Capital One Platinum Secured Credit Card
*The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for looking beyond traditional credit scores
Petal® 1 “No Annual Fee” Visa® Credit Card
*The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for newcomers to the U.S.
Tomo Credit Card
*The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Compare the best credit cards for bad credit
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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.
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The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why this card made the list
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card * The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. (issued by WebBank) is everything a card to help build credit should be: It charges no annual fees, doesn’t have a security deposit requirement and earns rewards to boot. Plus, it reports to the three main credit bureaus and offers the possibility of a credit line increase after six months of on time payments.
Petal can approve you for a card based on your banking history with no credit check required. The card comes with basic Visa benefits including access to roadside dispatch, auto rental collision insurance and theft coverage. Those with major blemishes in their credit history may not be approved for this version, but for the Petal® 1 “No Annual Fee” Visa® Credit Card * The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. or Petal® 1 Rise Visa® Credit Card * The information for the Petal® 1 Rise Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. versions (issued by WebBank) — which have different attributes.
- Annual fee: $0.
- Secured or unsecured: Unsecured.
- Rewards: Earn 1% cash back right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% to 10% cash back at select merchants.
- Standard APR: 18.24% to 32.24% variable APR.
Why this card made the list
The Discover it® Secured Credit Card doesn’t require a credit history to apply, unlike many other secured cards. And, the issuer will review your account automatically after seven months to see if you qualify to convert to an unsecured version and get your deposit back.
Discover will automatically match all the cash back earned at the end of the first cardmember year and offers monthly account reviews (starting after seven months with the card) with the potential to have your deposit refunded after demonstrating responsible payment behavior.
- Annual fee: $0.
- Secured or unsecured: Secured.
- Rewards: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
- Standard APR: 10.99% intro APR on balance transfers for six months, then a 28.24 variable APR applies on purchases and balance transfers. There’s a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).
The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why this card made the list
The Capital One Platinum Secured Credit Card * The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is one of the only secured cards with which you can potentially be approved for a higher credit limit than your initial deposit. Depending on your credit profile, you could qualify for a credit line of up to $200 with a $49, $99 or $200 minimum refundable deposit. And, the initial opening deposit can be funded over 35 days in 20 increments, rather than all at once. But note that some applicants will be required to put down the full $200 deposit. Capital One will notify you what your minimum deposit amount is if you’re approved for the card.
- Annual fee: $0.
- Secured or unsecured: Secured.
- Rewards: None.
- Standard APR: 29.99% variable APR on purchases and balance transfers.
The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why this card made the list
The Petal® 1 “No Annual Fee” Visa® Credit Card * The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. (issued by WebBank) is one of just a few unsecured credit cards without annual or account opening fees that are available to those just starting to build their credit. Most cards that fit this description are student cards that often require proof of school enrollment. The Petal 1 Card has no such requirement, making it a great low-cost option for anyone not in school. The card also comes with basic Visa benefits such as roadside dispatch access and theft protection.
- Annual fee: $0.
- Secured or unsecured: Unsecured.
- Rewards: 2% to 10% cash back at select merchants.
- Standard APR: 25.24% to 34.74% variable APR.
The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why this card made the list
If you’re fiscally fit but lack a meaningful credit history, the Tomo Credit Card * The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. merits consideration. The company looks at your bank information and salary to determine approval, which makes it ideal for someone new to the U.S. with a job but no U.S. credit history. What makes it unique for building credit is that it’s a charge card with a seven-day autopay schedule, which keeps you tightly on track for paying off any balance.
- Annual fee: $2.99 per month.
- Secured or unsecured: Unsecured.
- Rewards: None.
- Standard APR: None.
Methodology
We have spent hours analyzing hundreds of credit cards. Our methodology in selecting the best credit cards for bad credit was based on factors including annual fees, any other account-related fees, if the card reported to the three major credit bureaus, if a card offered rewards and/or other benefits and for secured cards, if the card offered a path to upgrade to an unsecured version. That analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. Factors we considered included:
If the card was secured or unsecured.
- Annual fees, account opening fees and any other fees associated with owning and using the card.
- If a hard credit check was required to open the account and/or if an applicant could pre-qualify before applying.
- The card’s ongoing APR.
- Card benefits like rewards or ability to graduate to an unsecured card if relevant.
What is bad credit?
Your credit history is a record of money you’ve borrowed from banks and other financial institutions in the form of financial products — like credit cards, personal loans, auto loans and mortgages. There are three major consumer credit bureaus, and each one maintains a credit report detailing your history of borrowing and repayment. Information from your credit history is used to generate a three-digit number which is your credit score.
This credit score is what lenders use to measure how risky or reliable you are in financial terms so that they can decide whether to lend you money. A higher credit score means you’re more likely to repay what you borrow, and a lower score means you’re less likely.
Bad credit indicates to lenders you’re a risky borrower and they could lose money if they issue you a credit card or grant you a loan. Because of this, your application for credit may be denied. If it’s approved, you may get worse terms than someone with good credit — an obvious example of this being if you’re charged a higher interest rate.
Each person will have a variety of credit scores based on different scoring models. The most commonly used scoring model is a FICO Score. On the FICO scale, a score from 300 to 579 is a poor credit score, while one from 580 to 669 is fair credit. If your score ranges from 670 to 850, that means it falls into either the good, very good or exceptional credit band.
What causes a bad credit score?
One of the biggest factors that can hurt your credit score include paying late or missing payments. That’s particularly true if the issuer ends up sending your debt to collections.
Payment history matters for your credit card and other financial products as well. If you miss a payment on a personal loan or car loan, for example, your credit score can suffer.
Maxing out your credit card (high utilization, in other words) also hurts your credit score. But the good news is that this is temporary, and paying off your debt will lower your utilization and your score should be able to rebound quickly if this was the only negative item on your credit report.
Here are the factors impacting your FICO Score:
- Payment history is 35% of your score.
- Amounts owed is 30% of your score.
- Length of credit history is 15% of your score.
- Credit mix is 10% of your score.
- New credit is 10% of your score.
Types of credit cards for bad credit
Generally, there are two types of credit cards for those with bad credit: secured and unsecured.
A secured credit card requires an upfront security deposit, usually equal to the amount of the credit line you’re seeking. Secured cards typically have a minimum opening deposit requirement and a maximum amount you can deposit. There are secured cards for personal use and even secured business cards for small business owners with less than stellar credit history.
Unsecured cards require no security deposit but may have higher fees and/or interest rates to carry a balance as the issuer is taking on more risk without your security deposit.
Be cautious when evaluating unsecured cards designed for people with bad credit. It may sound tempting to not have to submit a security deposit, but if you’re looking at a subprime product with opaque terms and expensive fees, you’re probably better off in the long run saving up $200 or so for the minimum deposit on a secured card from a reputable issuer.
Is your credit not bad, but nonexistent? In that case, consider our list of best first credit cards to build credit.
Pros and cons of credit cards for bad credit
Like any financial product, there are both pros and cons to credit cards designed for those with bad credit.
Pros
- Can help you build or repair credit if used responsibility.
- Potential to earn rewards — with some cards, but not all.
- Perks and benefits with some cards like purchase protection or cellphone insurance.
Cons
- May charge high fees and/or interest rates.
- Terms and conditions on some cards can be unclear.
- Some secured cards don’t offer a path to “graduate”, so when your credit improves, you’re better off applying for a new card account and closing the old one (after paying it off in full) to get your deposit back.
How to get a credit card with bad credit
When you have bad credit, there are a few things to keep in mind when applying for a credit card. First, have realistic expectations. Cards offering huge welcome bonuses and rich rewards are generally aimed at those with excellent credit. When you have bad credit, your main goal should be to get a card that helps you improve your current credit profile.
The actual process of applying for a credit card is the same regardless of anyone’s credit score. You can apply online by visiting the issuer’s website and clicking the “apply now” links. You’ll typically be asked to provide some identifying information including your full legal name, address, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) if required, and in some cases you’ll be asked to provide some basic financial information such as your salary and debt obligations like your rent.
You’ll typically receive an answer in a few minutes when you apply online. Be aware that almost any time you apply for a new line of credit, including a credit card, a hard inquiry will be made to your credit report for the issuer to determine if they should approve you or not—which in turn can temporarily ding your credit further. There are some cards for bad credit that don’t check your score, however, and these cards usually highlight it as a feature on their main card page.
Can you pre-qualify for a credit card with bad credit?
Although there are a number of pre-qualification tools available online, it’s important to know that being pre-qualified is not the same thing as being approved. When you’re pre-qualified for a credit card, it simply means you’re likely to be approved when you apply, but it’s not a guarantee.
When it comes to bad credit, you want to avoid as much as possible having a credit card application denied. Your best bet when it comes to being pre-qualified for a credit card is to visit an issuer’s site and see if they have a pre-qualification or preapproval tool. These features will perform a “soft” credit check that won’t hurt your score and will let you know the likelihood of receiving approval for a particular credit card.
Credit cards to watch out for
When you have bad credit it may seem like any credit card that will approve you will do. But that’s not the case. As our list above shows, there are some good options for those with bad credit, including cards with low or no annual fees and even some that earn rewards.
Here’s what to avoid in a card for bad credit:
- High annual fees and account opening fees. Why pay these when there are less-expensive options available?
- A fee for increasing your credit limit. The best cards for bad credit will automatically consider you for a higher credit line at no additional charge.
- An annual fee plus a monthly fee. One or the other might be justifiable, but never choose a card that charges both.
- Cards with punitive interest rates. Ideally you’d pay your balance in full and on time every month, but that’s not always realistic. Although cards for those with bad credit often have higher-than-average interest rates, since you’re considered a bigger risk to the issuer, there’s no reason to pay at the top end of range when there are other cards that carry more palatable APRs.
Choosing the best credit card for bad credit
Getting the right credit card can be a key step to improving your credit score. But there are numerous cards out there marketed to people with bad credit, and not all will be a good fit.
“Understanding all your options is so important to your financial wellness. This is particularly true for people with blemished credit history, who have the most to lose by choosing the first company to approve their application. We know from experience that stigma prevents many folks from discussing their financial challenges with friends, family, or even financial experts who offer confidential advice. But they aren’t alone. Seeking reputable sources of information can save significant stress and money in the long run”, says Jim Triggs, President & CEO of Money Management International.
When trying to select the best card to help you rebuild from bad credit to good, here are a couple important questions to evaluate carefully.
Are you able to commit to a secured card?
Secured credit cards generally have the most favorable terms, including low or zero annual fees, and may include other helpful benefits like a path to graduate to an unsecured version of the card. But the big drawback is that you have to be willing and able to fork over a deposit equal to the amount of credit you’re seeking. Most secured cards have required opening deposit minimums that range from $100 to $500, and it can be a challenge to come up with that amount.
If you can put together the minimum deposit for a good secured card, that will often be the best way forward. But if not, an unsecured credit card might be your best bet.
Can you tolerate an annual fee?
Most unsecured cards for those with bad credit will charge an annual fee, which is a trade-off for not putting up a security deposit. But, steer clear of cards that charge additional fees on top of an annual fee. Account opening fees, account management fees and credit limit request fees are all red flags that the card you’re looking at will be an unnecessarily expensive way to gain access to credit.
Tips for boosting your credit score
- Always pay on time, every time. This is probably the most important factor in building and maintaining good credit. Payment history makes up 35% of your FICO Score and is important to your VantageScore credit score as well. If you’re even one day late with a payment, you might get hit with a late fee and/or penalty APR. And, once you hit 30 days past due, your issuer can report the late payment to the credit bureaus.
- Keep your utilization low. Put simply, your utilization is how much of your credit limit you’re using. If you have a $100 balance on a card with a $500 credit limit, that’s 20% utilization. Your utilization ratio is calculated both on a per-card basis and across all your cards as a whole. For example, carrying a $100 balance on a card with a $500 credit limit and a $650 balance on a card with a $1,000 limit, that’s 50% utilization overall.
- Don’t apply for multiple cards at once. If you aren’t sure you’ll be approved for the card you’re eyeing, don’t apply for a number of cards hoping one will work out. Every time you apply for a new credit card, the hard inquiry made by the issuer to the consumer credit reporting bureaus will ding your score, and multiple inquiries in a row is an unwelcome signal to an issuer that you may be overextending yourself.
Built up your credit score to the good or better range? You might be ready to apply for a rewards credit card.
Frequently asked questions (FAQs)
It’s unlikely you’ll get approved for a high-limit credit card with bad credit. However, it is possible to be approved for credit lines as high as $5,000 or more if you have a secured card account that allows you to make an equivalent deposit.
Some cards for bad credit will allow you to do a balance transfer, like the Discover it Secured Credit Card and the DCU Visa® Platinum Secured Credit Card * The information for the DCU Visa® Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. . But before doing a balance transfer, it pays to do the math and consider both the price of any balance transfer fees and if the card you’re transferring debt to has a lower APR than the card on which you currently have the debt.
Also, be aware that cards with 0% intro APR balance transfer offers typically require good or better credit.
A secured credit card requires the customer to submit a security deposit to the issuer. There’s typically a minimum deposit of $200 or $300, and the amount deposited determines your credit line. If you don’t pay back what you charge to the card, the issuer will confiscate the deposit.
By contrast, an unsecured credit card does not require a security deposit. This is what most people think of as a regular credit card. Unsecured cards are issued when the bank or financial institution determines the applicant’s creditworthiness and financial details are satisfactory.
While secured cards are generally aimed at people who have no credit history or perhaps have bad credit due to past mistakes, many unsecured cards require good or better credit to obtain. There are unsecured cards for people with bad credit, but they may come with expensive fees and other terms that can make them potentially dangerous products to unwary customers.
Our picks for the best cards for bad credit include both secured and unsecured cards that, with responsible use, can help people with less-than-stellar credit history improve their credit.
The easiest credit cards for people with bad credit to get are generally secured cards, as the risk to the issuer of you defaulting on your balance is minimal since they hold your deposit. However, some secured cards won’t approve those with recent or still-pending bankruptcies.
If your credit is very much in the recovery and repair stage, a credit-builder card is likely to be your best bet. A card like the Secured Chime® Credit Builder Visa® Credit Card, which reports to all three credit bureaus and charges no annual fees and no interest¹, could be a good place to start.
The short answer to this question is “it depends”. One metric to keep an eye on is your FICO Score. Typically, a FICO Score of 670 to 739 is considered good credit, so once your score hits this range you might have a shot at approval for better credit cards. (Note, make sure you know what type of credit score you’re checking, because there are many different scoring models).
Another factor to consider is how long you’ve been using your current card. The longer your history of on-time payments and low utilization, the better you’ll look if an issuer checks your credit reports. You may wish to use your card for at least a year before applying for a new one.
Finally, consider that some issuers may help you resolve this conundrum. With the Discover it Secured Credit Card, for example, the issuer begins monthly reviews of your account starting after seven months. If you qualify by demonstrating responsible behavior, you may get your deposit back and graduate to an unsecured credit card. Capital One is also known as an issuer that may sometimes offer cardholders opportunities via their online accounts to upgrade a card.
If your issuer doesn’t offer you an upgrade, a good way to proceed is to check with issuers that offer preapproval or pre-qualification tools online. Find a card you’re preapproved for that fits your needs and apply — if approved, you can close the old card or keep it open for the value it provides your credit score. If there’s no annual fee, you should be able to keep it at no cost.
¹Out of network ATM withdrawal and over the counter advance fees may apply. See here for details.
²Money 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.
³To 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.
*The information for the Capital One Platinum Secured Credit Card, DCU Visa® Platinum Secured Credit Card, Petal® 1 Rise Visa® Credit Card, Petal® 1 “No Annual Fee” Visa® Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card and Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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