Best Credit Cards For Bad Credit
Overview:
- Find the credit card that best fits your needs as you work to build your credit.
- Cards for bad credit can help you build your credit profile with responsible use.
- Secured and unsecured credit options are available.
- Don’t let your credit score get you down. Applicants with bad credit may be eligible to earn up to 1% cash back on eligible purchases.
- Terms vary by partner offer. Please see each bank’s application for terms and conditions.
- Clicking View Cards will take you to CreditCards.com to compare Bad Credit cards from participating partners.
What are the best credit cards for bad credit?
The best credit cards for people with bad credit come in two forms: secured credit cards and unsecured credit cards. Secured credit cards are best credit cards for bad credit. Secured credit cards required a security deposit. For credit cards for people with bad credit, credit card companies will request a security deposit equal to your credit limit. For example, many credit cards for poor credit require a security deposit from $200 – $1,000. If you have bad credit, a security deposit makes sense as you rebuild credit. With credit cards for poor credit, a security deposit also gives comfort to the credit card company to show you are a less risky customer.
If you have poor credit and want to qualify for credit cards for poor credit, secured credit cards are your best option. The reason is that your credit line is backed by your security deposit. Therefore, if you miss a payment or have a late payment for your credit cards for poor credit, your security deposit can be deducted accordingly. If this happens, your credit line may be lowered as well, but interest will be charged on your outstanding balance.If you close your credit card, your security deposit is returned.
The good news is that it is easier to be approved for secured credit cards so you don’t need a great credit score. So, for credit cards for people with bad credit, secured credit cards are the best option to build and improve credit. If you pay on time and do not miss payments, you can demonstrate your discipline and may see your credit increase. Over time, you can increase your credit line and even qualify for credit cards with rewards programs and cash back programs.
While unsecured credit cards do not require a security deposit, they are more difficult to qualify for. However, they usually have lower fees.
Here are the best credit cards for bad credit of 2020
Self Credit Builder Account + Secured Visa Credit Card
The Self Credit Builder Account + Secured Visa Credit Card is a combined credit builder account secured card products. The goal is to help you build credit and save money (minus interest and fees). Your credit builder account reports to all 3 credit bureaus and each monthly payment helps you build credit and savings. The Self Visa credit card is available at millions of locations.
Annual Fee: $9 one-time + $25 secured card
Regular APR: 15.65% – 15.97%
Great Benefits: The Self Credit Builder Account + Secured Visa Credit Card has great benefits, including:
- Receive a combined credit builder account and secured card products to help you build credit and save money (minus interest and fees)
- No credit check or credit history required.
- Start with a credit builder account that reports to all 3 credit bureaus.
- Each monthly payment builds credit history and savings. Choose the plan that works best for you.
- Make at least 3 monthly payments on time, have $100 or more in savings progress in your account, and be in good standing.You’ll automatically be eligible for the Self Visa Credit Card, without a credit check.
- Your savings progress from your Credit Builder Account acts as your refundable security deposit.
- The Self Visa Credit Card is accepted at millions of locations in the U.S.
- Stay on track with credit utilization monitoring, auto pay, account reminders, a mobile app, and dedicated customer support.
Indigo® Platinum Mastercard®
Annual Fee: $0-$99
Regular APR: 24.90%
Great Benefits: The Indigo® Platinum Mastercard®has great benefits, including:
- Pre-qualification available with no impact to your credit score
- Previous bankruptcy is OK
- Easy pre-qualification process with fast response
- Free online account access (mobile-friendly)
- Protection from fraudif your card happens to be lost or stolen
- Accepted at over 35 million locations worldwide
Milestone® Gold Mastercard®
Annual Fee: $35-$99
Regular APR: 24.90%
Great Benefits: The Milestone® Gold Mastercard® has great benefits, including:
- Quick pre-qualification available with no impact to your credit score
- Choose your custom card design for free
- Free online account access
- Protection from fraud if your card is lost or stolen
- Accepted at over 35 million locations worldwide
- Previous bankruptcy is OK
Capital One® Secured Mastercard®
Annual Fee: $0
Regular APR: 26.99%
Great Benefits: The Capital One® Secured Mastercard® has great benefits, including:
- No annual fee
- Required refundable security deposit of $49, $99 or $200
- Receive $200 credit line once you make minimum security deposit
- Be considered for a higher credit limit in as few as 6 months
- Choose your own monthly due date and payment method
Surge Mastercard® Credit Card
The Surge Mastercard® Credit Card helps you build credit with an initial credit limit of $500. You can apply with no impact to your credit score, and all credit types are welcome to apply. You can also get monthly reporting to the three major credit bureaus.
Annual Fee: $75-$99
Regular APR: 25.90%-29.99%
Great Benefits: The Surge Mastercard® Credit Card has great benefits, including:
- Receive a $500 initial credit limit.
- Ability to receive credit increase after 6 months of account opening.
- You canpre-qualify with no impact to your credit score
- All credit types are welcome to apply
- Get free access to your Vantage 3.0 score from TransUnion (when you sign up for e-statements)
- Receive $0 fraud liability so you won’t be held accountable for any unauthorized charges on your card
- Get monthly reporting to the three major credit bureaus
- Use your card at locations everywhere Mastercard® is accepted
- Requires checking account
Indigo® Mastercard®
Annual Fee: $0-$99
Regular APR: 24.90%
Great Benefits: The Indigo® Mastercard® has great benefits, including:
- Unsecured credit card, which means that no security deposit required
- Account history is reported to the three major credit bureaus in the U.S.
- Opportunity to build and access credit
- Choose your custom card design for free
- Fast pre-qualification available with no impact to your credit score
- Online servicing available 24/7 at no additional cost
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is a secured credit card that helps you build and access credit. With the OpenSky® Secured Visa® Credit Card, 99% of customers who had no credit score got a credit score with the credit bureaus in as few as 6 months. You can receive 0% APR for the first three months from account opening. With no credit check necessary to apply, your credit limit will be equal to your refundable deposit (which starts as low as $200).
Annual Fee: $35
Regular APR: 17.39%
Great Benefits: The OpenSky® Secured Visa® Credit Card has great benefits, including:
- 0% introductory APR on all purchases for the first three months from account opening
- No credit check necessary to apply
- The refundable deposit (from as low as $200) that you provide becomes your credit limit
- OpenSky reports to all 3 major credit bureaus
- 99% of customers who started without a credit score earned a credit score record with the credit bureaus in as few as 6 months.
How can you get the best credit cards for bad credit?
Here are some expert tips to get the best credit cards for bad credit:
1. Secured credit cards are best
If you want to maximize your chance for approval for best credit cards for bad credit, then focus on secured credit cards. With the best credit cards for bad credit, you can place a security deposit that will be equal to your credit line. When it comes to credit cards for poor credit, secured credit cards are the most cost-effective way to rebuild credit. The security deposit means you won’t be charged fees.
2. Evaluate the fees
For the best credit cards for bad credit, compare the fees across the various options for credit cards for people with bad credit. Look for credit cards for poor credit with low or no fees. Since your focus is rebuilding credit and to demonstrate you are financially responsible, pay your credit card bill on time and in full.
3. Pay your bills on time and avoid delinquent accounts
Credit cards for people with bad credit are all about how to rebuild credit. With credit cards for poor credit, your goal is to prove you are financially responsible. Therefore, pay off any outstanding balances with other accounts. Check to ensure you have no delinquent accounts. Otherwise, when you ask how to get a credit card with bad credit, it may be challenging to get approved.
How can I use credit cards for people with bad credit to raise my credit score?
You can use credit cards for people with bad credit to improve your credit score. In fact, credit cards for poor credit are often used solely to raise your credit score. If you want to know how to get a credit card with bad credit, here are the proactive steps you can take:
1. Review your credit score
Your credit score is a reflection of your financial profile and history of financial responsibility. The higher your credit score, the lower your interest rate and larger your credit line. Analyze your credit report to identify areas of potential improvement. When it comes to credit cards for poor credit, you can identify items such as late payments, missed payments and delinquent accounts. If you correct these bad habits, you can improve your credit score quickly and get back on track. Also, if you notice any inaccuracies on your credit report, contact the three major credit bureaus – Experian, Equifax and TransUnion – to have your credit report corrected.
2. Repay outstanding debt
Evaluate your current debt, and do your best to repay it. Lenders will evaluate your debt outstanding when they decide to approve you for the best credit cards for bad credit. The less debt you have, the better when it comes to the best credit cards for bad credit. If you have other outstanding credit card debt, repay it before you apply for the best credit cards for poor credit. This will signal to credit card companies who offer credit cards for poor credit that you are financially responsible.Another reason to repay other outstanding credit card debt is to manage your credit card utilization, which is the amount of credit card debt outstanding as a percentage of your credit line. For credit cards for people with bad credit, keep your credit utilization low (below 30% or less).
3. Apply for the best credit cards for bad credit
Now, it’s time to apply for the best credit cards for bad credit.If you want to know how to get a credit card with bad credit, start with secured credit cards. You can also try unsecured credit cards depending on your credit profile.
4. Make on-time payments
Once you have been approved for one of the best credit cards for bad credit, focus on making on-time payments. With credit cards for people with bad credit, the most important step is to pay in-full and on-time each month. This will signal to credit card companies that you are financially responsible. Also, on-time payments are reported to credit bureaus, which can help improve your credit score.
What are the components of credit score used for the best credit cards for people with bad credit?
For credit cards with poor credit, your approval is dependent on your personal financial situation. Your outstanding debt, missed and late payments and account delinquency can also factor into your credit score. The sooner you correct these habits and practices, the sooner your credit score will increase. The best credit cards for people with bad credit will evaluate your credit score based on the following components, and how much they contribute to your credit score:
FICO Score Breakdown
| Characteristic | Percentage |
| Payment History | 35% |
| Credit Utilization | 30% |
| Account Age | 15% |
| Credit Inquiries | 10% |
| Credit Mix | 10% |
How can I get credit cards for poor credit?
Yes, there are credit cards for people with bad credit. If you are looking for credit cards for poor credit, you’re in luck. Even if you have bad credit, you can still qualify for the best credit cards for bad credit.You can find the best credit cards for people with bad credit here on Make Lemonade. You can also use our comparison tools to evaluate the best credit cards for bad credit
When it comes to credit cards for people with bad credit, what is considered a good credit score and what is a bad credit score? Typically, a credit score below 630 is considered a bad credit score.
This table can help you see if your credit score is considered good or bad, and whether credit cards for poor credit make sense for you.
FICO Scores and Credit Ratings
| Credit Score | Rating |
| 720-850 | Great Credit |
| 680-719 | Good Credit |
| 630-679 | Fair Credit |
| 550-629 | Subprime Credit |
| 300-549 | Poor Credit |
It may seem counterintuitive to have credit cards for people with bad credit, but the best credit cards for poor credit are available with several credit card companies. One feature of credit cards for poor credit is that the APR may be higher the worse your credit. This means that best cards for bad creditmay have higher APR compared with credit cards for people with good credit. This is because credit card companies want to ensure that you can repay your credit cards for poor credit and will not default.
How do you apply for the best credit cards for bad credit?
When it comes to the best cards for bad credit, there are some clear steps to take to get approved for the best credit cards for poor credit. Here are some to keep in mind:
1. Start with secured credit cards
You will need to put down a security deposit, but secured credit cards are a great tool to build credit. Plus, they are easier to get approved for than unsecured credit cards.
2. Know your credit score
Your credit score is the key to your financial future. With credit cards for poor credit, you can assess which cards match your credit profile. This way, when you apply for credit cards for people with bad credit, you will know which ones you are likely to be approved for.
3. Skip rewards credit cards
If you are wondering how to get a credit card with bad credit, your best bet is to avoid rewards credit cards. Focus on the best credit cards for poor credit. Once you rebuild credit, you can broaden your credit cards by applying for rewards credit cards.
