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Best Credit Cards for Bad Credit in October 2024

Updated October 10, 2024

Advertiser 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 and how we rate our cards.

Best Credit Cards for Bad Credit in October 2024

Updated October 10, 2024

Advertiser 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 and how we rate our cards.

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Showing 7 results

Best card with no interest for bad credit

Chime Credit Builder Secured Visa® Credit Card

Bankrate score

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4.2
Bankrate review
No Credit History
Apply nowLock

on Chime's secure site

Intro offer

N/A

Annual fee

None

Regular APR

N/A

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.

Best low-cost secured card for bad credit

Capital One Platinum Secured Credit Card

Bankrate score

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4.1
Bankrate review
No Credit History
Apply nowLock

on Capital One's secure site

See Rates & Fees

Intro offer

N/A

Annual fee

$0

Regular APR

29.99% (Variable)

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.

Best for building credit with savings

The Card with No Credit Check - The Secured Self Visa® Credit Card*

Bankrate score

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3.1
Bankrate review
No Credit History
Apply nowLock

on Self's secure site

Intro offer

N/A

Annual fee

$25

Regular APR

29.24% (Variable)

Why you'll like this: You can build credit on two fronts thanks to its combo of a secured loan and credit card.

Best rotating cash back card for bad credit

Discover it® Secured Credit Card

Bankrate score

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4.5
Bankrate review
No Credit History
Apply nowLock

on Discover's secure site

See Rates & Fees

Intro offer

Cashback Match™

Rewards Rate

1% - 2%

Annual fee

$0

Regular APR

27.74% 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.

Best for building business credit

Nav Prime Card

Bankrate score

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3.1
Bankrate review
No Credit History
Apply nowLock

on Nav's secure site

Regular APR

N/A

Annual fee

Nav 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.

Best customized rewards for bad credit

Bank of America® Customized Cash Rewards Secured Credit Card

Bank of America® Customized Cash Rewards Secured Credit Card

Bankrate score

star iconstar iconstar iconstar iconstar icon
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3.8
Bankrate review
No Credit History

Regular APR

28.24% Variable

Annual fee

None

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.

Best low-cost credit-building card

Mission Lane Visa® Credit Card

Mission Lane Visa® Credit Card

Bankrate score

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0.0
Bankrate review
Recommended credit score:(300 - 670)

Intro offer

N/A

Rewards Rate

N/A

Annual fee

$0 - $59

Regular APR

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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Compare Bankrate’s best cards for bad credit

Card Name Our pick for Recommended Credit Score Credit-Building Features
Bankrate Review Score
No interest for bad credit

No credit history*

No credit check

No min. security deposit

SpotMe overdraft protection

No annual fee

 

4.2 / 5

Info Icon
(Read card review)
Apply now Lock Icon
on Chime's secure site

Low-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

4.1 / 5

Info Icon
(Read card review)
Apply now Lock Icon
on Capital One's secure site
Building credit with savings

No credit history*

No deposit required

No hard pull on your credit report

Reports to the three major credit bureaus

3.1 / 5

Info Icon
(Read card review)
Apply now Lock Icon
on Self's secure site
Rotating cash back card for bad credit

No credit history*

Free access to FICO credit score

Automatic account reviews after seven months

Discover® Identity Alerts

4.5 / 5

Info Icon
(Read card review)
Apply now Lock Icon
on Discover's secure site

Building business credit

No credit history

Reports two tradelines to credit bureaus

Access detailed business and personal credit reports

Access to Nav Business Checking account

3.1 / 5

Info Icon
(Read card review)
Apply now Lock Icon
on Nav's secure site
Image of Bank of America® Customized Cash Rewards Secured Credit Card
Bank of America® Customized Cash Rewards Secured Credit Card

Customized rewards for bad credit

No credit history

Free access to FICO credit score

No annual fee

 
Image of Mission Lane Visa® Credit Card
Mission Lane Visa® Credit Card
Low-cost credit-building
Bad to Fair (300 – 670)*
Reports to all three credit bureaus

When to use a credit card for bad credit

A credit card for bad credit is geared toward people with no credit history, limited credit history or people who want to rebuild their credit from past mistakes. This means people with a FICO score between 300 and 670.

A credit card can still be a helpful tool in building credit, even with bad credit.  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: 

  • When you’re ready to repair your credit. If you’re ready to rebuild credit, a credit card for bad credit can help get you back on track. As long as you make on-time payments, keep your credit utilization ratio under 30 percent and practice other responsible credit habits, you can work toward a better credit score and card options. 
  • When you have a limited credit history. While you may not necessarily have bad credit, not having any credit can be just as restrictive. Many credit cards for bad credit are also some of the best for no credit history. People new to credit can try starter credit cards, and first-generation credit users can find cards that meet their needs in many of our featured cards.
  • When you want options for an emergency. Credit cards for bad credit often don’t have a high credit limit. However, a little can go a long way when it comes to a last-minute expense or emergency. While it won’t replace an emergency fund, it can be useful when you’re in a bind. 
  • When you need to make purchases without cash. Some expenses can’t be paid with cash or check. Having a credit card can simplify and automate payments. It can also be a good payment alternative if you don’t have a bank account.

Secured vs. unsecured credit cards for bad credit

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.

A secured credit card usually requires a security deposit for your credit limit, which determines the limit and often matches it. Credit-building features can also include reporting your credit activities to credit bureaus, late fee forgiveness and credit monitoring. 

These cards are ideal when you’re starting to build or need to repair your credit. Many of these cards offer preapproval, so it won’t hurt your credit to check your approval odds. Some don’t charge an annual fee, so you can focus on building credit without gaining any unnecessary debt. 

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 have high APRs (even higher than on some secured cards) and can include a variety of fees. Some even charge annual fees. It’s also rare that these cards come with benefits like rewards, despite being unsecured.

How to build your score if you have 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.

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Bankrate Insight

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.

What should you do if you get denied a credit card for bad credit?


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.

Our data: secured cards vs. unsecured cards

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 preferred secured cards, unsecured cards or secured cards combined with other products. In 2024, 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.

Both the Discover it® Secured Credit Card and The Card with No Credit Check - The Secured Self Visa® Credit Card* attracted 37 percent of Bankrate users. The Chime Credit Builder Secured Visa® Credit Card remains the most popular. 

Even though some products require upfront deposits and additional accounts, they may be more helpful and cost-efficient. It could be because they have lower credit barriers, are easier to apply for and don’t require credit checks. Plus, all have features that can lead to long-term healthy credit habits.

What people say about credit cards for bad credit

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 months or 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.

In the news: Interest rates drop in September Fed Reserve meeting

In a recent meeting, the Federal Reserve dropped interest rates by half a point, a turning point after their series of rate hikes throughout 2023. This is the first time rates have been dropped since 2020 and could possibly be the start of future interest rate cuts. 

This is great news if you plan on applying for a new credit card, as interest rates will drop across the board. Still, you need to stay mindful of your spending, as the rate changes won’t be super big for credit cards.

While the best strategy against debt like this is to create a habit of paying your credit card off fully every month, unexpected costs are more common than you think. In fact, 50 percent of cardholders regularly carry a balance, according to Bankrate’s 2024 Credit Card Debt Report

Sometimes, a credit card is the best option to make a last-minute payment. In this case, it is best to create a long-term payoff plan. If you’re starting to rebuild your credit, be mindful of how much you're borrowing. While interest rates won’t be as bad as they were before the rate drop, they’re still pretty high. So, it’s best to make purchases you can pay off in a timely manner.

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.

Frequently asked questions about credit cards for bad credit

How we assess the best credit cards for people with bad credit

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50+
Cards rated
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500+
Data points analyzed
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Fees tracked
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Perks evaluated

When 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:

5
Rating: 5 stars out of 5
Overall Score