4 best credit cards for bad credit in March 2023

Secured cards for bad credit

Secured cards are a great way to learn responsible credit use while issuers maintain a safety net for themselves in the form of credit card security deposits. When you open a secured credit card, you typically provide cash upfront that often acts as your starting credit limit. If you default on your card, the issuer keeps your security deposit, but if you use the card responsibly with on-time payments and low credit utilization, you may be able to increase your credit score, get your deposit refunded and graduate to an unsecured card.

Unsecured cards for bad credit

If you don’t want to — or can’t — provide the funds for a security deposit, unsecured credit cards are still available for people with bad credit. Unsecured cards for bad credit usually come with higher-than-average interest rates, no benefits and no rewards. You can still build credit with an unsecured credit card, but it’s important to do your best to pay your balance in full each month to avoid interest charges and practice positive credit use while you do so.

Student cards for bad credit

While college students without credit history don’t necessarily have bad credit, plenty of student credit cards may accept applicants with scores in the 500s. For example, the Discover it® Student Cash Back may be accessible for students without credit history (but other factors may influence your eligibility). What sets student credit cards apart from bad credit credit cards is that it’s much more common to find student credit cards with benefits, rewards, and no annual fees.

Get a credit-builder loan

A credit-builder loan is a great tool for someone who doesn’t have strong enough credit to be approved for a credit card, but still hopes to build their credit score. With a credit-builder loan, you’ll receive the loan amount (usually between $300 to $1,000 dollars) to a secure account that you won’t have access to right away. You’ll make a fixed monthly payment until you’ve paid off the entire amount of the loan and then get the full amount back. All of your payments will be reported to the three credit bureaus, which boosts your credit score over time.

Repay an existing loan

Repaying an existing loan — like a car or student loan — can help you improve your credit score if you pay on time and pay your entire balance each month. All loan payments are reported to the credit bureaus by the lender. Conversely, defaulting on a loan, or not making payments in a timely manner can negatively affect your credit score.

Report existing bills

A tool like Experian Boost can help you build your credit score quickly by adding alternative data to your credit report. The Experian Boost service lets users add cell phone bills, cable and internet bills, gas bills, electric bills and bills for streaming services to their credit reports. Traditionally these types of bills had no impact on your credit report because they weren’t reported to the three credit bureaus, but with Experian Boost these payments are used by FICO to calculate your score. Other services similar to Experian Boost are Experian Go, UltraFICO and eCredable Lift. Experian Go in particular doesn’t require an existing credit score to use.