Best credit cards for bad credit in December 2021

Personal finance experts at Bankrate have evaluated today’s best credit cards for bad credit and chosen the top options. We also offer tips on qualifying for a credit card and improving your credit score. Use this information to make the best choice for your financial future.

Compare Bankrate’s best cards for bad credit

A closer look at top credit cards for bad credit

Capital One Platinum Secured Credit Card

Best for rebuilding credit

• This card is a good fit for: Someone who wants a simple, minimal-fee path to a better credit score and isn’t concerned with earning rewards.
• This card is not a great choice for: Anyone who refuses to pay a security deposit or wants to earn cash back.
• What makes this card unique?The Capital One Platinum Secured Credit Card is one of the only secured cards with a deposit requirement that could be lower than your limit. This card also comes with an option to pay the opening deposit in installments over a 35-day period.
• Is the Capital One Platinum Secured Credit Card worth it? If your primary goal is to build credit, this card is an excellent choice. With an automatic credit line review after six months and a security deposit that’s lower than most annual fees, the Capital One Platinum Secured Credit Card is an affordable and efficient credit-building tool.

Read our Capital One Platinum Secured Credit Card review.
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Credit One Bank® Platinum Visa® for Rebuilding Credit

Best unsecured credit card with rewards

• This card is a good fit for: Frugal spenders who want to earn rewards on the everyday essentials.
• This card is not a great choice for: Someone who wants to avoid an annual fee. It’s only $75 for the first year, but it’s $99 for each year after that ($8.25 per month).
• What makes this card unique? Purchases that are eligible for earning 1% cash back include gas, groceries, mobile phone, internet, cable TV and satellite TV services (terms apply).
• Is the Credit One Bank® Platinum Visa® for Rebuilding Credit worth it?If you’re not thrilled about the idea of fronting several hundred dollars for a security deposit, this card offers the tradeoff of a $75 annual fee for the first year, then $99 ($8.25 per month). Plus, the opportunity to earn cash back on everyday purchases can help reduce the financial burden of the annual fee.

Read our Credit One Bank® Platinum Visa® for Rebuilding Credit review.
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Petal® 1 “No Annual Fee” Visa® Credit Card

Best for local cash back offers

• This card is a good fit for: Credit builders who are after cash rewards and no annual fee.
• This card is not a great choice for: Someone looking for consistent cash back opportunities. Cash back offers from the Petal Perks program are occasional and valid with select merchants only.
• What makes this card unique? Instead of only using your credit score to determine your eligibility, the Petal 1 Card evaluates other financial factors like your income and bill payment behavior.
• Is the Petal® 1 “No Annual Fee” Visa® Credit Card worth it? If you’re looking for a low-cost starter card, the Petal 1 Card’s flexible eligibility guidelines, lack of fees and cash back opportunities make it a solid choice.

Read our Petal® 1 “No Annual Fee” Visa® Credit Card review.
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Discover it® Secured Credit Card

Best secured card with rewards

• This card is a good fit for: Those who want to earn cash back and can put down a security deposit of as little as $200.
• This card is not a great choice for: Someone without a bank account, which is a requirement to apply.
• What makes this card unique? If you don’t have a robust credit history, finding a card that offers a substantial rewards program can be difficult. With the Discover it® Secured Credit Card, you’ll earn cash back in several useful categories, and Discover will match all of the cash back that you earned at the end of your first year — automatically.
• Is the Discover it® Secured Credit Card worth it? With no annual fee, generous rewards, and a security deposit as low as $200, this card is a clear frontrunner in the secured credit card game.

Read our Discover it® Secured Credit Card review.
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Mission Lane Visa Credit Card

Best for low annual fee

• This card is a good fit for: People who want to be laser-focused on rebuilding credit without having to put down a security deposit.
• This card is not a great choice for: People with fair credit, who may qualify for an even lower-cost card that also offers some rewards.
• What makes this card unique? This card is an unsecured option, so there’s no security deposit required to open an account. Additionally, its annual fee is also fairly low compared to similar cards.
• Is the Mission Lane Visa Credit Card worth it? If you want a no-frills credit-building card that doesn’t require a security deposit upfront, the Mission Lane Visa is the right fit. There are other cards on the market that may be even cheaper to hold and more lucrative depending on your credit score and financial goals.

Read our Mission Lane Visa Credit Card review.
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Self – Credit Builder Account + Secured Visa® Credit Card

Best for building credit with savings

• This card is a good fit for: Someone whose goal is to build their savings along with their credit history.
• This card is not a great choice for: Those looking for a line of credit immediately. You won’t actually receive a credit card until you’ve saved $100 in your Credit Builder Account and made three on-time monthly payments in a row.
• What makes this card unique? This savings account and credit card combination is pretty unique on its own, but even more so because the process doesn’t require a hard inquiry on your credit report.
• Is the Self – Credit Builder Account + Secured Visa® Credit Card worth it? If saving money is part of your financial plan and you’re fine with waiting a few months to gain access to the credit card, the Self Visa is a viable option. The ability to have two lines of credit (the credit builder account, which is a loan, and a credit card) without a hard inquiry on your report is pretty remarkable.

Read our Self – Credit Builder Account + Secured Visa Credit Card review.
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OpenSky® Secured Visa® Credit Card

Best for credit educational support

• This card is a good fit for: Someone who wants to choose their own credit limit, which will be equal to the amount you provide as a security deposit (from as low as $200).
• This card is not a great choice for: Rewards seekers and those who want to avoid an annual fee.
• What makes this card unique? The OpenSky Secured Visa does not do a credit check or even require you to have a checking account, a lifeline for someone in a credit jam who is trying to get a credit card. Plus, they provide credit tips and a dedicated credit education page on their website to support your journey.
• Is the OpenSky® Secured Visa® Credit Card worth it? The ability to choose your own credit limit based on the security deposit you provide is useful. However, the fact that you have to pay an annual fee on top of a security deposit detracts from the card’s overall value.

Read our OpenSky® Secured Visa® Credit Card review.
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What is considered bad credit?

Bad credit is typically defined by FICO® as a credit score lower than 579. So if your credit score falls within that range, your best bet may be a credit card for bad credit. People who have made financial mistakes, like defaulting on a loan or missing credit card payments, will often have poor credit. Sometimes, people who lack a credit history (i.e. never had a loan or credit card before) and, therefore, a credit score will need to opt for a card in this category.

Credit cards for bad credit typically come with fewer qualification requirements, different fee structures and specific features to help your credit-building journey along.

It’s important to keep in mind that credit scores are flexible and can change often depending on your individual credit activity.

Who should get a credit card for bad credit?

You can rebuild your credit with consistent, positive changes in your money-managing habits. A credit card for bad credit may be worthwhile for the following people:

The credit rebuilder

People who have made credit mistakes in the past may find it a bit difficult to qualify for a more typical, unsecured credit card or credit cards that come with a lot of perks and rewards. Unsecured cards that feature perks and rewards are often reserved for those who have a good credit score or higher. Credit cards designed for people with bad credit often have low barriers of entry for approval in terms of credit scores. This factor means that it is easier to qualify for these cards. In other words, if you have bad credit, these kinds of cards may be your only option. Choose a standout card in the category, focus on using it responsibly (via on-time payments and low credit utilization) and, ultimately, you should be able to “graduate” to a better credit card.

The credit beginner

For those who have limited or no credit history, and, therefore, have no credit score, it can be difficult to acquire many of the more popular unsecured card options on the market. Credit cards for people with bad credit are often accessible for people who have little or no credit given the lighter qualification requirements. Applying for a secured credit card or another option available for bad credit could help you get access to a credit line so you can start building credit via on-time payments and other responsible use.

Bonus: If you are a student seeking to start building credit, you may find a better match in the various student cards on the market, which feature student-centric perks and benefits that secured credit cards do not.

The no-frills seeker

If you are laser-focused on credit recovery and looking to slowly rebuild your score with responsible card use and few distractions, you may benefit from a basic card that doesn’t offer rewards. Points, miles or cash back could entice you to overspend. Some cards will reward your credit rebuilding efforts by offering a credit line increase after a set period of responsible use. Paying on time, all the time and in full whenever possible is important when practicing responsible credit habits and rebuilding a credit score. When choosing a card designed for people with bad credit, always be sure to check that it doesn’t charge too many onerous fees that could stunt your efforts.

Pros and cons of credit cards for bad credit

Credit cards for bad credit can be a lifeline if you need to build your credit from scratch, but there are tradeoffs.

The difference between secured and unsecured credit cards

Secured credit cards require an initial deposit, which serves as a layer of protection for the card issuer in case you miss payments. The deposit you make often becomes your credit limit. But you may receive a credit line that is greater than the initial deposit.

A secured credit card otherwise operates in a way that is similar to a regular, unsecured credit card. You’ll be able to purchase items with the card and then make payments. Interest is charged on balances carried month-to-month.

If you’re curious to learn more about these options, check out our picks for the best secured credit cards available from our partners.

Unlike secured credit cards, unsecured credit cards don’t require a deposit. They allow you to buy items, charge them to the account, and then pay off the balance. However, unsecured credit cards for bad credit tend to include additional fees and higher-than-average interest rates.

How to get a credit card with bad credit

Applying for a credit card doesn’t guarantee you’ll receive a credit card. A recent Bankrate survey found that 21 percent of consumers have had an application for credit denied in recent months because of a low credit score. Thirteen percent of that group had been rejected for a credit card.

Don’t be discouraged, though. Even if you have bad credit, credit cards aren’t necessarily out of your reach. Consider these four tips for finding a card that fits your needs.

1. Check your credit score first: Knowing your credit score will give you a better idea of which cards you might qualify for, as well as your overall financial standing. Most credit card offers specify a range of recommended credit scores.
2. Do your research: Be thorough in your research before applying and ensure it’s the right card for your needs. Look closely at any fees and interest rates.
3. Be selective with applications: An application that involves a hard inquiry on your credit will temporarily lower your credit score.
4. Consider secured credit cards: If you’re finding it difficult to find a card that you qualify for, take a look at secured cards. These cards require a deposit upfront, but with on-time payments and other types of responsible credit behavior, these cards could help you build your credit score.

How to choose the right credit card for bad credit

Getting a credit card designed for consumers with bad credit is an excellent opportunity to improve your credit profile, but it’s important to choose the right credit card if the card is going to work for you. Here are some important factors to consider when looking for a credit card for bad credit:

1. Fees — Some cards for poor credit carry high annual fees, among a multitude of other fees. Seek out a card that attempts to minimize your out-of-pocket costs as much as possible.
2. Reporting — The best cards for bad credit will report to at least one of the three major credit bureaus. Consistent payments over time will be crucial to improving your credit score.
3. Opportunity to upgrade — Many of the best cards for bad credit will allow you to upgrade to an unsecured credit card after a period of time, assuming good payment history. This is beneficial for cardholders because you don’t have to close a credit line and open a new account once your credit has improved, which can negatively impact your credit score.

What’s the easiest credit card to get approved for?

Although many of our listed cards have low barriers to entry, finding guaranteed approval in the credit card world is a near-myth. The closest thing you’ll get are options that let you bypass a credit check, such as the OpenSky Secured Visa Credit Card. To take a broader approach on finding the easiest credit cards to be approved for, here are some types that make it much simpler than others:

• Secured cards: Submitting a deposit lessens the risk taken on by card issuers, so these types of cards are often much more accessible than their unsecured counterparts. You can get your deposit back after closing or upgrading your account, so these more inclusive options can be an excellent starting point to increasing a bad credit score.
• Student credit cards: There may be certain requirements to be approved, such as proving you have independent income or finding a co-signer, but these cards are specifically designed to help those who are just starting their credit journey. This often means no credit history is required, making options like the Discover it® Student Cash Back and the Discover it® Student chrome accessible to many.
• Store cards: These cards are typically easier to qualify for than traditional credit cards, and can be used as a credit-building tool with the right habits. However, their often low credit limits and high-interest rates raise valid questions around whether store cards are worth it.

How to build your credit score

At first glance, it may seem counterintuitive to take on a credit card to improve your credit score, but responsible use of a credit card is one of the best ways to build a positive credit history. Without any credit history or with a poor credit score (in the 300-579 range), it may be difficult to acquire a more traditional credit card. That’s where credit cards designed for cardholders with poor credit come in.

With responsible use, like paying your full balance each month on time, you demonstrate to your card issuer and the credit bureaus that you can manage a credit card responsibly. This will boost your credit score and open the door to more lucrative cards that offer rewards and perks.

With time, careful decision-making and the right credit card, you can make a bad credit score better and gradually build a healthier credit profile.
Start by following these five tips for improving a bad credit score:

1. Check your credit report. Credit report errors are common, so obtain your credit report and check it thoroughly. If you see any, be sure to submit a dispute.
2. Clear debts. Catalog all of your debts and create a plan of attack to clear them. Prioritize your debts and stick to a payment schedule to pay everything down. Of course, this is easier said than done, but managing debt is a big step forward in improving your score.
3. Spend smart. Ensure you’re making all of your payments on time and in full. Keep a healthy amount of available credit, maintain low balances when possible and do your best not to spend beyond your means.
4. Stick to a plan. Although you can quickly find yourself with a low score, it is possible to improve your credit score. Avoid opening and closing credit accounts unless it makes sense.
5. Keep climbing. Length of credit history plays into your score, but recent activity also carries weight. Your continued good credit behavior will be rewarded as enough time passes for past debts to fall off your credit report.

Additional research to help you improve your credit score

Check out these informative Bankrate resources, plus in-depth reviews of credit cards designed for people with bad credit:

• How to build credit with a credit card
• Credit Scores & Reports Advice
• All reviews of credit cards for bad credit

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.