Written by
India Davis
India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has lived and worked in three different countries and hopes to explore more of the world post-pandemic.
Edited by
Courtney Mihocik
Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at Reviews.com and worked as the loans editor at The Simple Dollar.
Reviewed by
Sally Herigstad
Sally Herigstad is a personal finance writer, columnist, author and retired CPA. She wrote a CreditCards.com column called “To Her Credit” for 10 years, answering readers’ questions about credit, debt, finances and family relationships, and more. With a background in public accounting, she joined the personal finance team at Microsoft in 1998. She has been working to help people take control of their finances ever since.
Edited by
Courtney Mihocik
Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at Reviews.com and worked as the loans editor at The Simple Dollar.
Reviewed by
Sally Herigstad
Sally Herigstad is a personal finance writer, columnist, author and retired CPA. She wrote a CreditCards.com column called “To Her Credit” for 10 years, answering readers’ questions about credit, debt, finances and family relationships, and more. With a background in public accounting, she joined the personal finance team at Microsoft in 1998. She has been working to help people take control of their finances ever since.
Updated August 26, 2024Advertiser Disclosure: The listings that appear on the website are from credit card companies from which Bankrate receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Here's an explanation for how we make money and how we rate our cards.
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All cards Unsecured No annual fee Secured Welcome offer Rewards Filters icon Credit rangeInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
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Add to compareBest card with no interest for bad credit
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Chime 's secure siteInfo Hover to learn more
Intro offer is not available for this Chime credit card.
Why you'll like this: It doesn’t charge interest, and a traditional security deposit is not required, making it an especially low-risk credit-building option.
Editor's take Card Details Add to compareBest low-cost secured card for bad credit
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Capital One 's secure siteInfo Hover to learn more
Intro offer is not available for this Capital One credit card.
Why you'll like this: You may be eligible to put down a security deposit as low as $49 and still get a $200 minimum credit line.
Editor's take Card Details Add to compareBest for building credit with savings
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Self 's secure siteInfo Hover to learn more
Intro offer is not available for this Self credit card.
Why you'll like this: You can build credit on two fronts thanks to its combo of a secured loan and credit card.
Editor's take Card Details Add to compareBest rotating cash back card for bad credit
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Discover 's secure siteInfo Hover to learn more
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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Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all other purchases.
28.24% Variable APR
Why you'll like this: It’s one of the only secured cards that offers solid rewards with no annual fee. You can even graduate to an unsecured card with responsible use.
Reward Details Editor's take Card Details Add to compareBest for building business credit
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
on Nav 's secure siteNav Prime is $49.99/month, which gets reported as a tradeline.
Why you'll like this: It’s available even with a low personal credit score and reports two tradelines to credit bureaus, helping you build credit more efficiently.
Editor's take Card Details Add to compareBest customized rewards for bad credit
*The information about the Bank of America® Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare No Credit HistoryInfo Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Why you'll like this: Its rewards rates match the rates you’ll get on its unsecured version, so you won’t miss out while working on your score.
Reward Details Editor's take Add to compareBest low-cost credit-building card
*The information about the Mission Lane Visa® Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
Add to compare Recommended credit score: ( 300 - 670 )Info Hover to learn more
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
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Intro offer is not available for this Mission Lane credit card.
19.99% - 33.99% (Variable)
Why you'll like this: Its fees are relatively low and you won’t have to tie up hundreds in a security deposit.
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No credit history*
No credit check
SpotMe overdraft protection
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
on Chime's secure siteLow-cost secured card for bad credit
No credit history*
Access to CreditWise® credit alerts
Reports to the three credit bureaus
Automatic account review after six months
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
on Capital One's secure site Building credit with savingsNo credit history*
No deposit required
No hard pull on your credit report
Reports to the three major credit bureaus
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
on Self's secure site Rotating cash back card for bad creditNo credit history*
Free access to FICO credit score
Automatic account reviews after seven months
Discover® Identity Alerts
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
on Discover's secure siteBuilding business credit
No credit history
Reports two tradelines to credit bureaus
Access detailed business and personal credit reports
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.
on Nav's secure siteCustomized rewards for bad credit
No credit history
Free access to FICO credit score
Low-cost credit-building Bad to Fair (300 – 670)* Reports to all three credit bureaus Show 2 more rows
Thomas Nitzsche
Stephanie Zito
Erica Sandberg
Financial Educator, Debt and Credit
There are a few things you should do if you’ve been denied a credit card for bad credit. In the short term, you may need to find an alternative solution for the reason you were applying for credit. Was it for an essential need that you must now find an alternative to finance? You might have better luck at a local bank, credit union or Community Development Financial Institution (CDFI). CDFIs offer financial products and programs that support borrowers’ specific needs. They are also able to take more risk than a traditional bank. In the longer term, you should understand why you were denied and what you can do to improve your credit profile. This might mean reviewing your credit report, disputing any inaccuracies, making on-time payments on your credit accounts or opening a secured credit card or credit-builder loan (sometimes called a credit-builder CD) with a local bank or credit union to help improve your credit.
Contributor, Personal Finance
There are two scenarios for getting denied a card for bad credit. First, there could be a mistake on your credit report, like if someone else’s credit is being reported under your name. If you know your credit score isn’t actually bad, you’ll need to review your credit reports to find the error as soon as possible and follow up with the agency to sort it out. The second scenario occurs if your credit is actually low or needs improvement. In that case, you’ll need to intentionally do some work to boost your credit score. Tools like Credit Karma can help identify the areas where your score might be lacking.
Contributor, Credit Cards
Getting turned down for a card you were hoping for is just an awful feeling. It’s hard not to take it personally. Don’t, though. It just means that you applied for the wrong credit card for your credit profile. Before you apply for another account, find out what your credit score is. The next credit card you pursue should have scoring requirements that match those numbers. There are plenty of cards on the market, and some are specifically for people who have no or low credit scores. I also encourage people to take a look at their credit report and spot the damage that led to the poor credit scores. Maybe you have missed payments, accounts in collections, or high revolving debt compared to credit limits on other credit cards. Take action to bring your scores up by making payments on time and reducing your credit utilization ratio.
Even with bad credit, a credit card can still be a helpful tool. You can use a card to help you establish credit, boost your credit file or begin fixing past credit mistakes. Here’s when it’s smart to use a credit card for bad credit:
While improving your credit score can feel like an uphill battle, good credit habits and patience will pay off. Here are a few tips to remember when trying to boost your credit.
One of the most effective ways to build credit is with a credit card. While a few factors are more important than others when calculating your score, consistent and positive credit management over time is the key to seeing results. Once you apply for a credit card, establish a budget so you don’t overspend and risk further damaging your credit score. Take advantage of free credit management tools and keep a close eye on your progress.
If using a credit card to build credit isn’t the best option for you and your needs, you can explore alternative ways to build credit without a credit card. Other financial tools like credit-builder loans and alternative reporting data are two of the most popular ways to build credit without a credit card. If you need more help, you could explore credit repair options or pursue credit counseling. But do your research while exploring credit repair or counseling. Some bad actors do exist, and scammers may be more inclined to target people with bad credit. Check with the National Foundation for Credit Counseling or your local Financial Empowerment Center for help identifying legitimate credit counseling and repair services.
Regularly checking for inaccuracies on your credit report can keep your credit report tidy, making it easier to keep your credit score accurate. Luckily “cleaning” your credit report is a fairly easy process. Get copies of your credit reports from the major credit bureaus and check for errors or unfamiliar activity. If you find anything awry, contact your lender or the bureau to resolve the issue.
The two types of credit cards most commonly available to people with bad credit are secured cards and unsecured cards. Both options have notable advantages and disadvantages, primarily surrounding affordability, and deciding which one is best for you may come down to a few key differences.
Some of the best credit cards for bad credit are secured, which means the issuer requires a security deposit to get the card. Credit card security deposits serve as collateral for an issuer in exchange for lending a line of credit to what it may consider to be a “risky” borrower.
Secured credit cards are great tools for building credit because they typically have more relaxed credit requirements than unsecured cards, which could make them more accessible to people with no, limited or bad credit. However, secured cards often charge higher APRs than cards for fair or better credit and the security deposit may not be ideal for some.
Unsecured credit cards for bad credit differ slightly from secured cards. They do not require a security deposit but sometimes charge annual fees. If you don’t want to — or can’t — provide the funds for a security deposit, unsecured cards for bad credit are available, though they usually aren’t as common and don’t always have the best terms.
Generally, we advise people to avoid unsecured credit cards for bad credit whenever possible. Many unsecured credit cards for bad credit tend to be expensive since they also have high APRs (even higher than on some secured cards) and a few even charge annual fees. It’s also rare that these cards come with benefits like rewards, despite being unsecured.
Learn more: Can you get a secured card with no bank account?Most people have two main options for improving their bad credit scores: secured cards or unsecured cards. You can also consider alternative credit cards that combine a secured card with another product, such as a checking account, savings account or credit-builder loan, but it can be hard to tell which option is best for you.
We analyzed our proprietary data to see whether Bankrate readers in 2023 preferred secured cards, unsecured cards or secured cards combined with other products.
In 2023, readers were almost 39 percent more likely to click on secured credit cards than unsecured credit cards. And they were nearly 32 percent more likely to look at alternative credit card products than look at unsecured credit cards.
Even though secured cards require upfront deposits and credit card products like the Chime Credit Builder Secured Visa® Credit Card require an additional account, they may be more helpful and cost-efficient among readers. It could be because they have lower credit barriers, are easier to apply for and don’t require credit checks.
Having bad credit can be a burden and seem like a hopeless situation. People with bad credit turn to communities like r/PersonalFinance and r/PovertyFinance on Reddit and MyFICO Forums to find solutions, which isn’t a bad idea. Crowd-sourcing encouragement and advice may help you find the strategy you need to get your credit back on track.
And while it’s not impossible to improve your score, it takes patience and being realistic about the root cause of your credit. “It takes a while, usually best case scenario about a full year to get your score solidly in a higher bracket [sic],” one user commented in the r/PovertyFinance subreddit.*
Bankrate and credit cards expert Nouri Zarrugh agrees — this is the same advice he gives friends when they ask how to raise their credit scores.
“Bad credit is just a starting point,” he says. “Whenever friends ask me for advice on improving their score, my go-to advice is ‘slow and steady wins the race.’”
Depending on what’s affecting your score, it can take three months to more than six years for derogatory marks to fall off your reports and stop bringing down your score. But don’t lose hope. One regular contributor on MyFICOForums recently shared their story of how online communities helped them improve their score from the mid-500s to mid-800s over 12 years.
“I didn’t have hope for a long time but found solace reading about other’s situations and learning tremendously from them and the collective knowledge here. I found addressing issues instead of ignoring them is imperative. Cutting spending and being honest about the situation is critical. Sucking up your pride and doing things you may not want to … dramatically improves your future.”
— MTSN, MyFICO Forum user*
If you’ve determined a credit card is your next best step for fixing your credit, users also suggest using prequalification and preapproval tools to help you identify which issuers will accept your bad credit.
“Start with a low-cost card, only use it for small purchases and pay it off on time and in full, every time,” Zarrugh says. “Just stick to that, and you can see your score rise considerably.”
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up to date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Still unsure if a credit card is right for you even if you have bad credit? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Dig deeper: Learn how to choose a credit card for bad creditWhile inflation may be finally slowing down, there’s still a long way to go until prices drop.
On June 12, 2024, the Federal Reserve kept interest rates unchanged for the seventh consecutive time. Still, people with subprime credit scores can see their interest rates increase if they miss payments or max out credit cards.
Bankrate recently spoke with Katie Bossler, quality assurance specialist at GreenPath Financial Wellness, a nonprofit credit counseling service, about financial pressures subprime cardholders face. Increased prices on essentials like gas and groceries, reduced income and job losses can cause people to rely on their credit cards or other high-interest debt to make ends meet.
While these pressures can be scary, it’s important to pay credit cards on time, negotiate with your issuer and reach out for help from nonprofit credit counseling services to avoid cycles of high-interest debt.
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply..
*The information about the Bank of America Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
A bad credit score is a FICO score of 579 or less or a VantageScore of 601 or less. You can end up with a bad credit score for various reasons, such as missing payments or declaring bankruptcy. Having a bad credit score can make it difficult to get a credit card, car loans and other lending products.
Missed or late payments, high credit utilization ratio, delinquent accounts, foreclosure or and bankruptcy can all cause bad credit. And when you have bad credit, you typically have fewer options when applying to loans and credit cards, plus your interest rates are usually higher. Having bad credit can even lead to physical and mental health issues.
Cards that don't require a credit check when you apply are generally the easiest to get. Some examples of cards that don’t require a credit check include the Chime Credit Builder Secured Visa® Credit Card and the OpenSky® Secured Visa® Credit Card. Just remember that these cards, along with many of the other cards most accessible to people with bad credit, tend to have higher interest rates and annual fees in exchange for a line of credit.
A card issuer will likely determine your credit limit based on your creditworthiness, so getting a high limit with a lower score could be tough, but it’s not impossible. The best way to get a higher credit limit with bad credit is to find a secured card that allows you to set your credit limit with a matching security deposit.
Credit Card Reviews
Perks evaluatedWhen evaluating the best cards for building credit, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while minimizing costs.
We analyzed over 50 of the most popular cards designed for people with no credit history, bad credit or a fair credit score and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.
Here are some of the key factors that we considered and how they’re factored into our card ratings:
Rating: 5 stars out of 5 Overall ScoreA credit-building card’s cost has a large influence on its overall score and our decision to include it in our best cards list. This is because cards in this category tend to be much pricier than traditional credit cards designed for people with a good or better credit score. We compare a card’s total cost, including any annual fees, account activation fees, monthly fees and more against the total cost of other cards in the credit-building category and assign each card a score based on its affordability. We also factor rewards-earning potential into our assessment of a credit-building card’s total cost, subtracting expected earnings from the sum of its fees. To get a sense of a credit-building card’s rewards-earning potential, we estimate its average annual rewards rate and average annual earnings based on the most popular spending categories (as covered in the latest Bureau of Labor Statistics consumer spending report). However, we use a slightly lower spending assumption ($300 per month or $3,600 per year) to estimate average earnings, assuming credit-builders will start out with a lower credit limit, will want to keep credit utilization low and will focus primarily on small purchases they can easily pay off. While low-cost credit-building cards will always be at a major advantage in our scoring system and will likely earn a higher spot on our best cards list, no-annual-fee credit-building cards can be hard to come by, especially if you’re looking for an unsecured card. With this in mind, we may include unsecured cards with high fees in our list if they offer other benefits for credit-builders, like a high starting credit limit or useful perks. A card’s APR is also a major factor in its credit-building score. Each card’s average APR is compared against the average APR of other cards in the category, and the cards with lower-than-average APRs receive a higher rating. Given the many costs students face — from textbooks to laptops — the presence of an introductory APR on purchases or balance transfers also plays a role in a student card’s score and its inclusion on our list. Though high APRs are hard to avoid when you’re just starting out or working on your score, credit-builders and students should strive for as low an APR as possible since they’re likely to either be new to managing cards or trying to establish better financial habits and avoid falling into debt.
Along with a credit-building card’s cost, we consider how easy the card makes it to build credit. To assess this, we evaluate its credit limit potential and minimum deposit requirement. Unsecured cards with a high starting credit limit and secured cards that let you put down a large deposit and get a matching high credit limit will score the highest according to our “Ease of building credit” rubric and are more likely to appear on our list. This is because a high credit limit can make it much easier to keep your credit utilization low, a primary credit-building factor that makes up 30 percent of your FICO credit score. Secured cards have a slight advantage in this category since the maximum credit limit on a secured card tends to be much higher than the typical starting credit limit on an unsecured card. However, unsecured cards have the upper hand in another key aspect of building credit: accessibility. Cards that carry no or a low deposit requirement can also receive a high score according to our “Ease of building credit” rubric since these cards offer a lower barrier to entry than secured cards that require you to put up hundreds of dollars in an upfront deposit. Indeed, some users may prefer to pay a non-refundable $50 annual fee while they work on their credit score than tie up hundreds in a refundable security deposit.
We evaluate a student or credit-building card’s benefits based on how useful they are for someone looking to build a positive credit history or save money on everyday spending. We consider the inclusion of a rewards program, student-centric perks, access to your credit score or a credit monitoring service of prime importance, along with the ability to prequalify for the card with only a soft credit pull and a clear path to increase your credit limit or graduate to an unsecured or full-fledged rewards card. Cards that include these benefits are likely to score higher according to our credit-building card and student card scoring rubrics and are more likely to earn a place in our list.
