The best credit card for bad credit is often the one you can get approval for and can help you in rebuilding credit. To help you navigate to the right card, our credit card experts spend hundreds of hours each week comparing and reviewing credit cards, including those that aren’t partnered with our site. This ensures you’re receiving an unbiased assessment of which cards for bad credit can best serve your needs.
The seven cards we ranked as our top 2024 picks offer the most-needed benefits for bad credit including, low credit score requirements, reporting to major credit bureaus and low fees.
What are the best cards for bad credit?
Best for no annual fee
Petal® 1 "No Annual Fee" Visa® Credit Card
The new Petal® 1 "No Annual Fee" Visa® Credit Card is a premier credit-building choice for those with poor credit for two big reasons: It's not a secured card and it requires no annual fee. This means you can apply and start rebuilding your credit without worrying about a security deposit or yearly fee. Other secured cards on the market may charge anywhere from $35 to $200 to use each year, which can cut into your credit-building goals.
| Welcome Offer | n/a |
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| Rewards | Up to 10% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 550 |
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The new Petal® 1 "No Annual Fee" Visa® Credit Card is a premier credit-building choice for those with poor credit for two big reasons: It's not a secured card and it requires no annual fee. This means you can apply and start rebuilding your credit without worrying about a security deposit or yearly fee. Other secured cards on the market may charge anywhere from $35 to $200 to use each year, which can cut into your credit-building goals.
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Pros
- Build your credit. The card reports to all three major credit bureaus, Equifax, Experian and TransUnion. This means you can quickly build your credit if you keep your utilization low and pay your balance on time.
- No annual fee. You won't pay an annual fee to use this card.
- Rewards. Earn 2% to 10% back at select merchants when you use this card for purchases.
Cons
- High APR. The Petal 1's APR ranges from 25.24% to 34.74% variable.
- Fees. Unlike the Petal 2, this card carries fees, including late payment fees.
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| Annual fee | $0 |
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| Purchase APR | 25.24% to 34.74% variable |
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| Balance transfer APR | N/A |
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| Welcome Offer | N/A |
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| Rewards | Up to 10% cash back |
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| Welcome Offer | n/a |
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| Rewards | Up to 10% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 550 |
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Best for low APR
OpenSky® Secured Visa® Credit Card
If your credit score is especially weak, you might consider the OpenSky® Secured Visa® Credit Card. It doesn't require a credit check for qualification — a rarity among credit-building cards — and you don't even need a bank account to use it. The $35 annual fee is a rather small tradeoff for the card's generous application requirements.
| Welcome Offer | n/a |
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| Rewards | None |
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| Annual fee | $35 |
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| Minimum credit score | 300 |
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If your credit score is especially weak, you might consider the OpenSky® Secured Visa® Credit Card. It doesn't require a credit check for qualification — a rarity among credit-building cards — and you don't even need a bank account to use it. The $35 annual fee is a rather small tradeoff for the card's generous application requirements.
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Pros
- No credit check. OpenSky uses your ID to confirm your identity and it won't do a credit pull.
- Build your credit. The card reports to all three major credit bureaus, which can help strengthen your credit. All you have to do is keep your utilization low and make timely payments.
- Credit line. You have full control over your credit line, as it's the sum of your security deposit. You can make a deposit from $200 up to $3,000.
Cons
- Annual fee. The card comes with a $35 annual fee. A small price to pay for no credit check.
- Foreign transaction fee. Every transaction made abroad or online with foreign merchants will cost you 3% of the amount.
- No rewards. You won't earn rewards on your purchases.
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| Annual fee | $35 |
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| Purchase APR | 24.89% variable |
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| Balance transfer APR | N/A |
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| Welcome Offer | N/A |
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| Rewards | None |
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| Welcome Offer | n/a |
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| Rewards | None |
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| Annual fee | $35 |
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| Minimum credit score | 300 |
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Best prequalification card
Indigo® Mastercard® Credit Card
The Indigo® Mastercard® Credit Card is a solid unsecured card for bad credit, though recently usurped by the Petal 1 when it comes to ideal unsecured credit-building. However, the Indigo® Mastercard® Credit Card does allow you to see your approval chances before you apply. This can help you determine if the card is right for you without the burden of a hard credit pull on your score.
| Welcome Offer | n/a |
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| Rewards | None |
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| Annual fee | $0 to $99 |
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| Minimum credit score | 510 |
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The Indigo® Mastercard® Credit Card is a solid unsecured card for bad credit, though recently usurped by the Petal 1 when it comes to ideal unsecured credit-building. However, the Indigo® Mastercard® Credit Card does allow you to see your approval chances before you apply. This can help you determine if the card is right for you without the burden of a hard credit pull on your score.
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Pros
- Unsecured card. You don't need to make a secured deposit to start building your credit.
- No cash-advance fees. For the first year, you get to save money on cash-advance fees. But after that a fee of either $5 or 5% of the transaction, whichever is greater, applies.
Cons
- You may pay an annual fee. Depending on your creditworthiness, you could pay , $59 or $75 for the first year and thereafter.
- Foreign transaction fees. Purchases made abroad or online with foreign merchants will cost you a 1% fee of the amount.
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| Annual fee | $0 to $99 |
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| Purchase APR | 24.9% variable |
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| Balance transfer APR | N/A |
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| Welcome Offer | N/A |
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| Rewards | None |
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| Welcome Offer | n/a |
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| Rewards | None |
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| Annual fee | $0 to $99 |
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| Minimum credit score | 510 |
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Best for motorheads
Harley-Davidson® Visa® Secured Card
The Harley-Davidson® Visa® Secured Card is, curiously, a solid secured card for bad credit thanks to it's no annual fee and the ability to earn rewards on purchases. Granted, these rewards aren't as diverse as the Petal's offerings, but a majority of secured cards don't offer any sort of rewards at all — especially for no annual fee.
| Welcome Offer | n/a |
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| Rewards | Up to 1x points |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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The Harley-Davidson® Visa® Secured Card is, curiously, a solid secured card for bad credit thanks to it's no annual fee and the ability to earn rewards on purchases. Granted, these rewards aren't as diverse as the Petal's offerings, but a majority of secured cards don't offer any sort of rewards at all — especially for no annual fee.
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Pros
- Build your credit. The card reports to all three major credit bureaus, Equifax, Experian and TransUnion. This means you could quickly build your credit if you keep your utilization low and pay your balance on time.
- No annual fee. You won't have to pay an annual fee to use this card.
- Rewards. Sure, you're earning Harley Davidson points, but it's more than most secured cards offer.
Cons
- Big minimum security deposit. You'll need to put down at least $300 to get started with this card.
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| Annual fee | $0 |
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| Purchase APR | 0% intro for the first 9 billing cycles (then from 27.49% variable) |
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| Balance transfer APR | 0% intro for the first 9 billing cycles (then 27.49% variable) |
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| Welcome Offer | N/A |
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| Rewards | Up to 1x points |
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| Welcome Offer | n/a |
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| Rewards | Up to 1x points |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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Terms apply, see rates & fees.
Best for rewards
Discover it® Secured
The Discover it® Secured is one of the most rewarding credit cards for bad credit. This secured card not only earns 2% back on dining and fuel on up to $1,000 each quarter, but Discover will match all the cash back you earned during your first year. This makes it one of the rare secured cards with a signup bonus, and a powerful one at that. To sweeten the deal, you won't pay an annual fee for the card.
| Welcome Offer | Other |
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| Rewards | Up to 2% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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The Discover it® Secured is one of the most rewarding credit cards for bad credit. This secured card not only earns 2% back on dining and fuel on up to $1,000 each quarter, but Discover will match all the cash back you earned during your first year. This makes it one of the rare secured cards with a signup bonus, and a powerful one at that. To sweeten the deal, you won't pay an annual fee for the card.
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Pros
- Signup bonus. At the end of your first year, Discover will match all of the cash back you’ve earned without any limits.
- Cash back. Earn 2% cash back at gas stations and restaurants on the first $1,000 in combined purchases each quarter. After that, and on all other purchases, earn 1% cash back.
- Credit reporting to the three major bureaus. Discover will report your payment history to the three major credit bureaus — TransUnion, Equifax and Experian. With consistent on-time payments, you’ll build your credit score.
- Possible security deposit return after eight months. After eight months, Discover will review your account every month. If they deem you’ve been a responsible cardholder, they may return your security deposit while you continue using your card. This effectively turns your secured card into an unsecured card.
Cons
- It hurts to pay late. Your first late fee is waived, but making subsequent late or returned payments could result in fees as high as $41.
- Time limit for balance transfers. If you want to take advantage of the intro balance transfer APR, your transfers must post to your account within the first months.
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| Annual fee | $0 |
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| Purchase APR | 27.49% variable |
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| Balance transfer APR | 10.99% intro for the first 6 months (then 27.49% variable) Balance transfer fee of 3% |
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| Welcome Offer | Discover will match cash back earned at the end of your first card year |
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| Rewards | Up to 2% cash back |
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| Welcome Offer | Other |
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| Rewards | Up to 2% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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Best card for Amazon purchases
Amazon Store Card
The Amazon Store Card is a credit-building option offered to those who apply for the Amazon Prime Store Card but may not qualify based on credit. Even as a secured card, if offers some great value plays for Amazon fans, as you get to choose to either earn 5% cash back on your Amazon purchases or get between six and 24 months of deferred interest if paid in full. The only tradeoff is this card doesn't earn rewards elsewhere.
| Welcome Offer | $10 |
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| Rewards | Up to 5% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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The Amazon Store Card is a credit-building option offered to those who apply for the Amazon Prime Store Card but may not qualify based on credit. Even as a secured card, if offers some great value plays for Amazon fans, as you get to choose to either earn 5% cash back on your Amazon purchases or get between six and 24 months of deferred interest if paid in full. The only tradeoff is this card doesn't earn rewards elsewhere.
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Pros
- Cash back. Earn 5% cash back on all Amazon purchases.
- Promotional financing. Buy now and pay later for items $150 or more purchased on Amazon.com. This gives you a 0% promo APR if you pay in full before the promotional period expires.
- Build credit. Get your credit activity reported to the three major credit bureaus, TransUnion, Experian and Equifax. This means that with responsible credit you get to build your credit score. As a bonus, you may get upgraded to an unsecured card.
Cons
- No intro APR offer. You won't find an intro APR on purchases or balance transfers with this card.
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| Annual fee | $0 |
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| Purchase APR | 10% non-variable APR for the secured card and 29.99% variable APR for the store card variable |
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| Balance transfer APR | N/A |
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| Welcome Offer | $10 Amazon.com gift card upon account opening |
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| Rewards | Up to 5% cash back |
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| Welcome Offer | $10 |
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| Rewards | Up to 5% cash back |
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| Annual fee | $0 |
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| Minimum credit score | 300 |
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Terms apply, see rates & fees.
The application process for cards for bad credit is usually the same as with any other card:
- Visit the card’s website and select the card you want to apply for.
- Select Apply Now and fill out the application form.
- Review the form and submit.
What if my credit card application is rejected?
Try calling your card provider and ask for reconsideration. Another alternative is to apply for credit cards with no credit check. This way your credit score won’t take a hit and your card application will most likely be approved.
There are a few ways to maximize your chances of approval for a credit card for bad credit.
- Pick based on your score. Knowing your credit score before you apply can prevent you from choosing cards that are out of your range. Remember, applying for a credit card often results in a credit check, which can put a small, temporary dent in your score.
- Pay off existing debts. If you have any small debts hanging overhead, try paying those off first. This can help boost your credit score, which will improve your chances of getting approved for a card.
- Search among reputable credit card issuers. If you can help it, find a credit card for bad credit from a trusted major provider, such as Capital One or Discover. “Bad credit” cards from lesser-known credit card issuers may have especially harsh or unusual fees attached to them, such as activation fees or monthly fees you won’t find on most cards.
- Look at secured and unsecured cards. Unsecured cards aren’t your only option for bad credit. Secured cards are a great tool for building credit when you have a poor credit history. But mind the secured and unsecured card differences.
Having a bad credit score limits your financial tool options, meaning you can only get subprime credit cards. In this case, getting the right credit card is paramount to building your credit. Here’s what to consider when comparing credit cards for bad credit:
- Annual fee. Look for a secured card with an annual fee below the average unsecured fee range of $89 and $200. Secured cards usually have an annual fee between $29 and $49, while some have no fee at all.
- Credit limit. Get a credit limit as high as $5,000 using a secured card as that credit line is your deposit. Unsecured cards often come with a credit limit between $200 and $300.
- Interest rates. Keep an eye on this because some unsecured cards come with no grace period. This means you start to accrue interest from the moment you make the purchase. This can quickly spiral out of control and pull you deeper in debt.
- Security deposits. If you’re interested in a secured credit card to help you build your credit score, you’ll want to review each card’s required security deposit. A card with a large security deposit could put too much strain on your finances to be worth it. On the other hand a small security deposit might not give you the spending power you desire from your secured card. Compare your options to find the right balance for your finances.
- Rewards program. This is rare with credit cards for bad credit, but some secured cards let you earn rewards on your purchases, such as gas or groceries. Many kinds of store credit cards made for bad credit are also frequently available.
Here are the two main options available to you if you have poor credit.
- Secured credit cards. Secured credit cards for bad credit operate like regular credit cards but require a security deposit to determine the limit of your card. Say you make a $500 security deposit, then you have a $500 card limit. This tells the issuer you have enough money to pay off the card. This is a great way to rebuild your credit history provided the issuer reports to the three major bureaus — and most secured cards do — and provided you pay off your card on time.
- Unsecured cards for building credit. These are standard credit cards specifically designed for those with poor credit. While you can build your credit with unsecured cards for bad credit, they often have low credit limits, punishing rates and fees. This could make them an expensive credit-building option. But if you can’t afford to make an upfront deposit for a secured card, an unsecured card for bad credit is your next option.
If none of these credit card types are right for you, Sam Greenspan, head of content for Demand.io, suggests an alternative. He tells Finder:
“If you have subpar credit, look into the rising number of buy now, pay later services. Often they are more generous with approvals than credit cards and their loans are interest-free. Plus, they will only do a soft credit check — or no credit check — during the approval process, helping you avoid a ding on your credit report or a potential rejection. Some of the buy now, pay later services, like Klarna and Afterpay, offer perks and rewards that are comparable to cash back or points on a credit card. And other services, including Sezzle and Perpay, even specialize in working with people who have a lower credit score or no credit: They’ll make positive reports to credit bureaus as you make your payments which can help boost up your credit score.”
Although you can build your credit with this type of card, there are some card features to watch, as they may hinder your credit-building efforts. For example:
- Doesn’t report to credit bureaus. You may find the perfect card for your current financial situation. But if it doesn’t report to the three main credit bureaus, it’s useless for building credit. Whichever card you choose, make sure it reports to all three major credit bureaus: Equifax, Experian, and TransUnion.
- Hidden or unusual fees. Keep an eye for fees that aren’t openly advertised. This is often the case with unsecured credit cards for bad credit where you may be charged program fees of up to $25 each month for services you may likely never need. Other fees include monthly maintenance fees, additional card fees and higher-than-average late-payment fees.
- Interest rates. Credit cards for bad credit aren’t known for their low-interest rates, although there are some cards that’ll surprise you. Either way, if you’re looking to build your credit, you should try to pay your full balance on time and avoid paying any interest altogether.
Ultimately, a bad credit rating can significantly impact your lifestyle, making it difficult to get a car, a home loan or other forms of credit. If you find yourself in such a position, don’t despair. With responsible use, a secured card can help you rebuild your credit score. Compare secured credit cards for one that best fits your current financial situation.
