What Are The Best Credit Cards For Bad Credit?

What are the best credit cards for bad credit

The thought of trying to apply for a credit card with bad credit can make it seem nearly impossible! The best way to know if you’ll be approved for a credit card is to know your credit score. We will show you what the best credit cards for bad credit are.

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products however our opinions are our own. 

Do you know your credit score? 

If you think you have a bad credit score, no credit at all, or just unsure what your credit is, The best step is to first understand what credit is and secondly, check your credit score

Related: Credit Karma vs FICO Score

Can you get a Credit Card with Bad or No Credit?

Yes, it’s true that if you have bad credit or no credit at all, you can still apply for credit cards. Most of the time the best option for people with no credit is to get a secured credit card. These credit cards are packed with features to give you the best chance at building your credit. 

Secured credit cards are backed by deposits which you will use as your credit line, and the banks will use this deposit as collateral if you cannot pay your bills. Some secured credit cards don’t check your credit so they are more apt to instantly approve you if you meet their qualifications. 

Related: How To Waive Annual Fees On Credit Cards

What are some good credit cards for a 600 credit score or below?

If you have a 600 credit score or below applying for secured credit cards is the easiest credit card to apply for and is almost all guaranteed approval. 

The benefit of a secured credit card is that they are the perfect starting point for someone who has no credit history or has bad credit and is looking to rebuild their credit history. Secured credit cards are almost always approved but because of that, these cards require a deposit and it’s not always refundable. Instead of applying for a regular credit card and the lender picking your credit limit for you, with secured credit cards you can choose your credit limit by making a larger or smaller deposit . 

The higher amount you can deposit the higher the credit limit will be which will lead to a higher credit score, because you’ll have more available credit, with less credit utilization.

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What is the cheapest secured credit card deposit?

The average deposit is $200 – $300 With some credit cards requiring up to $500 as a minimum starter balance.

What is the best secured credit card for bad credit?

We have searched and evaluated tons of credit cards and these are the best credit cards for bad credit. 

#1 OpenSky – Best for Rebuilding Your Credit Score or have no credit history

Opensky Credit Card

Pros

  • They don’t check your credit when you apply! 
  • You get to pick your credit limit by making a one-time refundable deposit. 
  • APR 17.39%

Cons

  • $35 Annual Fee
  • Deposit Minimum of $200

#2 Citi Secured Mastercard– No Annual Fee

Citi Secured credit Card for bad credit

Pros 

  • No Annual Fee
  • Low Credit Score (300-600)
  • Reports monthly to all 3 major credit bureaus 

Cons

  • Deposit Minimum of $200 up to $2,500
  • APR 22.49%

#3 Discover It Secured– Best for Cash Back Rewards

Discover It secured credit card for bad credit

Pros 

  • No Annual Fee
  • Low Credit Score (300-600)
  • Earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter. 
  • Earn 1% cash back on all other purchases. 
  • Automatically match all the cash back you earn at the end of your first year. There is no limit!
  • Reports monthly to all 3 major credit bureaus. 
  • Monthly reviews starting at 8 months to see if they can transition you to an account with no security deposit

Cons

  • Requires deposit
  • APR 22.99% 

#4. Secured Mastercard from Capital One – Lowest Deposit

Secured mastercard from CapitalOne for bad credit

Pros

  • No Annual Fee
  • Low Credit Score (300-600)
  • Low refundable security deposit ($49, $99 or $200)
  • Automatically considered for a higher credit line in 6 months

Cons 

  • Security Deposit Required 
  • APR 26.99% 

#5 The Surge MasterCard – Great for people with less than perfect credit

Surge Mastercard

Pros

  • Credit limit from $300 to $1,000
  • Credit increase after 6 months
  • Monthly reporting to all three major credit bureaus to help increase your credit score
  • Access to your free monthly credit score

Cons

  • Annual Fee of $75 up to $99
  • Interest 25.9% to 29.99%

#6 Reflex MasterCard – Best for building credit

Relex Mastercard- Best credit cards for bad credit

Pros

  • No deposit required
  • Credit limit from $300 to $1,000
  • Credit increase after 6 months
  • Monthly reporting to all three major credit bureaus to help increase your credit score
  • Access to your free monthly credit score

Cons

  • Annual Fee of $75 up to $99
  • Interest 25.9% to 29.99%

#7 The Milestone MasterCard – Best after bankruptcy

Milestone Mastercard

Pros

  • You can pre-qualify so there is no impact on your credit score
  • No deposit required
  • Reports monthly to all three credit bureaus

Cons

  • Annual Fee of $35 – $99
  • $300 credit limit
  • APR 24.9%

#8 Indigo Mastercard – Best unsecured Credit Card

Indigo Mastercard

Pros

  • You can pre-qualify so there is no impact on your credit score
  • No deposit required
  • Reports monthly to all three credit bureaus

Cons

  • Annual Fee of $0 – $99 (based on your creditworthiness)
  • $300 credit limit
  • No credit increase
  • APR 24.9%

#9 Credit One Bank Platinum Visa – Best for Rebuilding Credit with Rewards

Credit One Bank Platinum Visa Credit Card

Pros

  • 1% cashback rewards on gas, groceries, internet, mobile phone, and cable
  • Free access to your Experian credit score
  • Choose your payment due date
  • Automatic credit line increase

Cons

  • Annual Fee of $75 first year, then $99
  • $300 credit limit
  • No credit increase
  • APR 17.99% -23.99%

#10 The Fingerhut Credit Account

Fingerhut Credit Account

Pros

  • Reports to all three major credit bureaus
  • No monthly or annual fees
  • When you apply you can get approved by 1 of 2 accounts WebBank or Freshstart Installment Loan.
  • Fast approval process

Cons

  • APR 29.99%
  • You can only use it for Fingerhut purchases

How Can I Apply For A Credit Card With Bad Credit?

You can apply for any of the secured credit cards mentioned above if you have bad credit. Find the card that works best for your needs and read through all the details of the card so you fully understand the process. 

When you have decided on the right card for you, apply. You will need to provide some of your basic personal information such as name, address, email address, and phone number. 

You will also be asked to provide your financial information such as your annual income, monthly housing payment, whether you rent or own a home, your birthday, and your social security number. 

The next step is to read all the terms and agree to them. Make sure you pay attention to APR and how you can avoid paying interest, if they have annual fees, what the transaction rates are, and make note of when the billing date is so you don’t ever miss a payment. 

Lastly, you choose your security deposit, which will end up being your credit line. So, if you choose a $200 deposit your credit line will be $200. 

Related: How To Find The Best Credit Cards Based On Your Credit Score

Do you have bad credit, no credit or want to learn how to become a credit expert?

Check out our credit repair training and learn:

  • What your actual credit score is
  • How to get a copy of your free credit report
  • How to get your credit back on track today
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