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Best Credit Cards for Bad Credit in December 2023

Updated November 28, 2023

People with bad credit scores (in the 300 to 579 FICO score range) can benefit from using a card designed specifically for them. These cards for bad credit lack some of the rewards and features of standard credit cards and may come with more punishing rates and fees. In exchange, consumers with poor or no credit scores may apply and qualify. The best credit cards for bad credit minimize the risk associated with these fees while allowing consumers the opportunity to build their credit score. 

Best for flexible deposit
Rating: 4.2 stars out of 5
4.2
Info
Apply now Lock
on Chime's secure site
No Credit History
Info
Recommended Credit

N/A

Intro offer

Info

Annual fee

N/A

Regular APR

Best for rebuilding credit
Rating: 4.1 stars out of 5
4.1
Info
Apply now Lock
on Capital One's secure site
No Credit History
Info
Recommended Credit

N/A

Intro offer

Info

Annual fee

Regular APR

Best for building credit with savings
Rating: 3.1 stars out of 5
3.1
Info
Apply now Lock
on Self's secure site
No Credit History
Info
Recommended Credit

N/A

Intro offer

Info

Annual fee

Regular APR

Best secured card with rewards
Rating: 5 stars out of 5
5.0
Info
Apply now Lock
on Discover's secure site
No Credit History
Info
Recommended Credit

Intro offer

Info

1% - 2%

Rewards Rate

Info

Annual fee

Regular APR

Compare Bankrate’s best cards for bad credit

Card Name Our pick for Recommended Credit Score Bankrate Review Score
Flexible deposit

No credit history*

Apply now Lock
on Chime's secure site

4.2 / 5

Info

(Read card review)

Rebuilding credit

No credit history*

Apply now Lock
on Capital One's secure site

4.1 / 5

Info

(Read card review)

Building credit with savings

No credit history*

Apply now Lock
on Self's secure site

3.1 / 5

Info

(Read card review)

Secured card with rewards

No credit history*

Apply now Lock
on Discover's secure site

5.0 / 5

Info

(Read card review)

A closer look at top credit cards for bad credit

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Chime Credit Builder Secured Visa® Credit Card

Best for flexible deposit

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It’s a low-cost way to build credit, since it doesn’t pose an annual fee or require a security deposit. 

People new to credit who want to avoid common credit card pitfalls like interest and over-limit charges. 

The Zolve Azpire Credit Builder Card + Checking Account works similarly to the Secured Chime Credit Builder.  However, the Zolve will automatically deduct purchases you make with the Azpire card from the account with your funds, making it easier to stay on track with paying your credit card.

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Capital One Platinum Secured Credit Card

Best for rebuilding credit

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With its automatic credit line review after six months of responsible use and a relatively low security deposit, the Capital One Platinum Secured is a cost-efficient credit-building tool.
Simplicity-lovers building their credit scores. There’s not a lot of fluff that comes with this card — you won’t earn cash back or points.
If you want to earn rewards while you build credit, try the Discover it® Secured Credit Card. While it doesn’t have as low a security deposit as the Capital One Platinum Secured, it offers consistent cash back.
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Self - Credit Builder Account with Secured Visa® Credit Card

Best for building credit with savings

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When you’re approved for the Self Visa card, you’re granted a loan that’s placed into an interest-bearing account. Repayments of that loan are reported to the credit bureaus, helping you boost your credit score. Once you’ve repaid the loan, the principal and interest can be used as a security deposit for your credit card.
People who want to build their credit and their savings simultaneously.
If you’re looking for access to a line of credit immediately, a secured card like the Citi® Secured Mastercard® could be the right choice. The $200 minimum security deposit could be refunded after 18 months of using the card responsibly.
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Discover it® Secured Credit Card

Best secured card with rewards

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It’s rare to find a secured credit card with features and benefits that mimic those of a top rewards card. This card not only earns rewards but also touts notable features like Cashback Match™ and no annual fee.
Credit-builders who want to avoid annual fees, earn rewards and lay the foundation for responsible credit use. Its minimal fees and rewards structure gives it a leg up over other secured cards.
If paying a security deposit isn’t an option for you, there are unsecured credit cards that are open to people with low credit scores. The Mission Lane Visa Credit Card is a relatively low-cost — if bare-bones — option for people who have bad credit.
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Mission Lane Visa® Credit Card

Best unsecured card for bad credit

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This card is a straightforward credit-building tool. It doesn’t come with a lot of the bells and whistles of traditional credit cards, but it makes up for it by being an accessible, inexpensive option for building credit.
People who want an unsecured card to start their credit-building journey. The annual fee is reasonable, and there is no need to tie up your funds in a security deposit.
If you’re looking for a card that will give you a higher credit limit to work with, it may be worth it to consider other options. The Capital One Quicksilver Secured Cash Rewards Credit Card matches your credit limit with your security deposit, so your credit limit can be as high or low as you’d like.
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Zolve Azpire Credit Builder Card + Checking Account

Best for building credit with no interest

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It doesn’t require any credit history or credit check to apply, making it a low-barrier option for people who need to start building credit. The Azpire also accepts alternate identification, like a passport or ITIN to apply.
People who don’t want — or can’t qualify for — a traditional card for bad credit, as it uses a deposit account to fund purchases with the card.
It’s hard to find a true alternative, but the Self - Credit Builder Account with Secured Visa helps people improve their credit mix by including a credit-builder loan. The loan account acts as the security deposit and credit limit for the Visa card.

What you need to know about credit cards for bad credit

A bad credit score — a FICO score under 579 or a VantageScore under 600 — can happen for a number of reasons and negatively impact your finances. Defaulting on loans, missing credit card payments or even opening too many credit lines can negatively impact your credit score. If you’re a victim of credit card fraud or identity theft, your credit score could also take a hit, making it more difficult to qualify for the financial products and services you need. 

What causes bad credit?

A few primary elements affect your credit score. Your credit behavior and the way these elements appear on your credit report are what triggers negative changes.

  • Payment history: Since it’s the largest influence on your score, missing payments on your cards or loans will have a significant impact.
  • Credit utilization: If you’re using the majority of your available credit, this might signal to lenders that you’re relying too heavily on credit and could be at a heightened risk for defaulting.
  • Credit age: Any time you apply for new credit you reduce your credit age, which could lower your credit score. If you close a credit card, you could reduce your average credit account age and cause an increase in your credit utilization, which could have negative effects on your score.
  • Credit mix: Relying too heavily on one type of credit may have negative impacts on your score. Having a balanced mix of different credit products will show lenders you know how to manage multiple types of credit. 

How bad credit can affect you

Having bad credit can make many financial products less favorable or inaccessible. Renting an apartment, getting a credit card or applying for a mortgage all become more difficult with poor credit. Here are the main ways bad credit can affect you.

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Checking your credit score regularly is a good financial practice that can help you spot inaccuracies. Spotting inaccuracies on your credit report can help you keep your credit report tidy, making it easier to get and keep your credit score where it needs to be. Luckily “cleaning” your credit report is a fairly easy five-step process.

When to use a credit card for bad credit

Even with bad credit, a credit card can still be a useful 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: 

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 of these 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 often great tools for building credit because they typically have more relaxed credit requirements, which could make them more accessible to people with no, limited or bad credit.  However, secured cards often carry higher APRs than cards for fair or better credit. 

Unsecured credit cards for bad credit differ slightly from secured cards in that they do not require a security deposit. 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.

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 coveted extras like rewards, despite being unsecured. 

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Can you get a secured credit card with no bank account?

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Should you get a secured or unsecured credit card?

Generally speaking, we advise people to avoid unsecured credit cards for bad credit whenever possible. While they can technically help you build credit, the high APRs and excessive fees they often carry make them a risky option and counter-productive to your ultimate goal: building credit. If you don’t mind paying upfront for a security deposit, then it may be best to get a secured card. 

Tips for choosing a credit card for bad credit

Using a credit card for bad credit is an opportunity to improve your credit profile, but it’s important to know what to look for in this kind of credit card. Here are some key factors to consider:

What’s your credit score?

Your credit score helps you narrow down which credit cards could give you the best chances for approval. It’s also essential to understand the factors that affect your score so that you can avoid pitfalls that will slow down your credit-building progress and show creditors you know how to use a credit card responsibly.

Does it report to the three major credit bureaus?

Most reputable credit card issuers report your credit use to all three credit bureaus: Experian, TransUnion and Equifax. Reporting to all three is important as lenders may choose to review your credit using any one of the three. If a card doesn’t report to all three, you run the risk of a lender reviewing an outdated credit score. Credit-building card issuers will often advertise whether they report to all three bureaus, but if you’re unsure, contact the issuer to check.

Do you know all the fees?

Watch out for common credit card fees, which can be especially high on cards for people with low credit scores. These include annual fees, late fees, monthly maintenance fees, penalty APRs and balance transfer fees. Such fees can add to your debt and make it harder to build credit. Fortunately, the right credit card and responsible use can help you avoid many of these extra costs.

Do you understand the terms and conditions?

Some cards for bad credit have terms and conditions that are hard to understand — even for some credit card experts. Cards can seem intentionally vague about the type of card you’ll receive or what the annual fee or ongoing APR will be until you go through with an application and a hard pull on your credit. To save your wallet, look at the card’s Schumer Box and read the terms and conditions thoroughly to avoid any issues.

What’s your plan as your score improves?

As your credit score starts to increase, you’ll need to be ready for new opportunities. The best credit cards for bad credit offer chances to graduate or upgrade to a better card with better terms. If you practice good credit habits, your card issuer may refund your security deposit on a secured card or increase your credit limit. Make sure you know how to compare credit cards ahead of time so you know what features you want and what cards to avoid.

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.

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LEARN MORE 6 tips on how to apply for a credit card with bad credit
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Expert advice on credit cards for bad credit

When you have to get a credit card for bad credit, you want to make it count. Here are a few ways you can make a credit card for bad credit work to get you to the next level.

Pick a card that’s cost-effective

The typical minimum deposit for a secured credit card is $200, but some secured cards have even lower deposit requirements. If you don’t want to put down a security deposit, look for an unsecured credit card for bad credit that has a low annual fee and very few additional fees. Beware that some credit cards for bad credit charge both a security deposit and an annual fee, so it’s best to steer clear of these options. An upfront and refundable security deposit could even be more cost-effective than an unsecured credit card for bad credit with an annual fee. Keeping extra costs low can help you manage your credit utilization and take one more stressor off your plate while building credit.

Put rewards on the backburner

The chance to earn rewards could prove distracting for some or entice people to overspend in order to earn. Many credit cards for bad credit that offer rewards don’t have the best rewards programs around, or the extra fees can eat into whatever you earn. It’s better to wait until you build your score up to the fair or good tier before trying to snag a rewards card.

Maximize your card’s credit-building tools

The best credit cards for bad credit come with built-in features that help you stay on track as you build your credit. Some of these tools include a free look at your FICO credit score or credit line increases to improve your credit utilization ratio. Using these tools to your advantage is key to ensuring your credit-building journey is successful. 

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While your first priority should be building up your credit if you have a low score, having bad credit won’t necessarily stop you from getting a rewards credit card. Travel rewards credit cards are some of the most popular, and there are travel credit cards for people with bad or fair credit available, though approval is not guaranteed. 

How to build your credit score

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, be sure to establish a budget so you don’t overspend and hurt your credit even more.

Use the credit management tools you have access to and keep a close eye on your progress. While getting approved for a credit card when you have bad credit may be more challenging, it’s not impossible, so it’s crucial to take intentional steps to reach your goals.

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 even 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 on identifying legitimate credit counseling and repair services.

Roughly 1 in 7 Americans’ top financial regret is taking on too much credit card debt

In a Bankrate study, 15 percent of U.S. adults say their biggest financial regret is taking on too much credit card debt. Read more about the results in the full Bankrate survey or hear from our experts on Bankrate's tips and tricks for paying down credit card 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 above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply. 

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

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500+
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40+
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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:

Frequently asked questions about credit cards for bad credit

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.