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To help you choose a card that you may qualify for even with bad credit, we’ve rounded up top options here. All of our selections are secured credit cards with reasonable deposit requirements. They report to the three major credit bureaus–Equifax, Experian and TransUnion–giving cardholders the opportunity to build a positive credit history by making on-time payments. One of them even offers cash back rewards.
Our best credit cards for bad credit are selected based on securitization, credit bureau reporting terms, and deposit requirements. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.
Discover It Secured Credit Card
- Interest rate: 26.74%
- Annual Fee: None
- Deposit and credit-line information: Your deposit matches your credit limit, and you must deposit a minimum $200; your deposit and credit line may go as high as $2,500, depending on your income and ability to pay; once you’ve made six consecutive months of on-time payments and are in good status on your other credit accounts (including those that are not Discover accounts), you qualify to get your deposit back and convert to an unsecured card
- Late-payment fee: None the first time you pay late; up to $41 for subsequent late payments
- Perks: 2% cash back on up to $1,000 in combined quarterly spending at gas stations and restaurants and 1% on all other spending; you also get a match of cash back earned after one year, doubling your rewards
Capital One Platinum Secured Credit Card - Low Deposit
- Interest rate: 28.49%
- Annual fee: None
- Deposit and credit-line information: With a refundable deposit of $49, $99 or $200, you get a $200 credit line; pay it all at once or in installments over 35 days; plus you can increase your initial credit line by making a larger deposit, with a maximum credit limit of $1,000
- Late-payment fee: Up to $40
Chime Credit Builder Secured Credit Card
- Interest rate: 0% (you can’t spend more than the deposit in your Credit Builder account)
- Annual fee: None
- Deposit and credit-line information: You choose how much money to transfer from your Chime checking account to your Credit Builder secured account and how often to make transfers (one option is to have money automatically transferred into Credit Builder after each paycheck).; the balance in your Credit Builder account is the amount you can spend with the credit card, and you can use the money in the Credit Builder account to pay your credit-card bill
- Late-payment fee: None
How to Get a Credit Card With Bad Credit
Before you apply for one of these credit cards, take a few minutes to go over your application information and strategy. Doing so can save you time and protect your credit score from falling even further. For a detailed explanation, see How to Get a Credit Card With Bad Credit.
Follow these steps to apply.
- Be honest with yourself. Are you ready for a credit card? If you have trouble paying your bills, or often pay them late, a credit card may exacerbate your financial situation.
- Check your credit score, which may be a FICO score or VantageScore and is measured on a scale from 300 to 850. A score below 580 is considered “bad.” If your score is 580 or higher, you may have more cards to choose from.
- Review the card’s terms and conditions, including fees and interest rates. The cards we recommend here are all secured. Ensure you understand how secured credit cards work and that you can afford the upfront deposit.
- Fill out the credit card application. The easiest way to apply is usually online.
If you feel you still need more guidance, see How to Get Approved for a Credit Card.
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Lisa Gerstner is Associate Editor at Kiplinger's Personal Finance.