Best Cards For Bad Credit

Credit Card

Company

Credit Needed
Self Credit Builder Account + Secured Visa Credit Card
Self
Good or Excellent
Indigo® Platinum Mastercard®
Indigo
Good or Excellent
Milestone® Gold Mastercard®
Milestone
Good or Excellent
Capital One® Secured Mastercard®
Capital One
Good or Excellent
Surge Mastercard® Credit Card
Surge
Good or Excellent
Indigo® Platinum Mastercard®
Indigo
Good or Excellent
OpenSky® Secured Visa® Credit Card
OpenSky
Good or Excellent
Clicking “Compare Cards” will redirect you to CreditCards.com’s secure website. Please note that the credit cards referenced on Make Lemonade may not be available on Creditcards.com’s website.

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

Annual Fee

$9 one-time + $25 secured card

APR

15.65% – 15.97%
Variable

Credit Needed

Good or Excellent
  • 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

APR

24.90%
Variable

Credit Needed

Good or Excellent
  • 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

APR

24.90%
Variable

Credit Needed

Good or Excellent
  • 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

APR

26.99%
Variable

Credit Needed

Good or Excellent
  • 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

Annual Fee

$75-$99

APR

25.90%-29.99%
Variable

Credit Needed

Good or Excellent
  • 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

APR

24.90%
Variable

Credit Needed

Good or Excellent
  • 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

Annual Fee

$35

APR

17.39%
Variable

Credit Needed

Good or Excellent
  • 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

CharacteristicPercentage
Payment History35%
Credit Utilization30%
Account Age15%
Credit Inquiries10%
Credit Mix10%

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
720-850Great Credit
680-719Good Credit
630-679Fair Credit
550-629Subprime Credit
300-549Poor 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.

Summary of Best Credit Cards for Bad Credit

Credit Card
Best For
Annual Fee
Deposit Requirement
Capital One® Secured Mastercard®
Secured card for bad credit
$0
$49-$200
Indigo® Platinum Mastercard®
Credit card for after bankruptcy
$0-$99
$0
OpenSky® Secured Visa® Credit Card
No credit check
$35
$200-$3,000
Destiny Mastercard®
Imperfect Credit
$59-$99
$0
Credit One Bank® Visa® Credit Card
Low Annual Fee
$0 – $99
$0
Self – Credit Builder Account + Secured Visa Credit Card
Establishing Credit
One Time $9 + Secured Card $25
$0
Milestone® Gold Mastercard®
Quick prequalification
$35-$99
See terms*
Surge Mastercard Credit Card
Credit card with a high limit
See Terms*
$0

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