Building credit when you have a low credit score can feel like a catch-22. You need credit to improve your credit, but it’s hard to get approved for new credit cards. Fortunately, there are credit cards specifically designed for people with bad credit that offer reasonable terms and a path to rebuilding your creditworthiness.
1. Capital One Platinum Secured Credit Card
- Security deposit: $49, $99, or $200
- Annual fee: $0
- APR: 29.99% Variable
Perfect for those just starting to rebuild credit, this card requires a minimal security deposit and reports to all three major credit bureaus. After six months of responsible use, you may qualify for a higher credit limit without an additional deposit.
2. Discover it® Secured Credit Card
- Security deposit: $200 minimum
- Annual fee: $0
- APR: 26.99% Variable
A rare secured card that offers cash back rewards: 2% at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases. Discover will automatically review your account starting at 7 months to see if you qualify to transition to an unsecured card.
3. OpenSky® Secured Visa® Credit Card
- Security deposit: $200 minimum
- Annual fee: $35
- APR: 21.64% Variable
No credit check required for approval, making it an excellent option for those with very poor credit or no credit history. Your security deposit becomes your credit limit, and you can deposit up to $3,000.
4. Credit One Bank® Platinum Visa®
- Security deposit: None (unsecured)
- Annual fee: $75 first year, then $99
- APR: 28.99% Variable
One of the few unsecured cards available for bad credit, offering 1% cash back on eligible purchases and regular credit line increase reviews with responsible use.
5. Merrick Bank Double Your Line® Secured Credit Card
- Security deposit: $200-$3,000
- Annual fee: $36
- APR: 22.45% Variable
Automatically doubles your credit line after 7 months of on-time payments without requiring an additional deposit, making it an excellent tool for quickly building credit.
6. First Progress Platinum Prestige Mastercard® Secured Credit Card
- Security deposit: $200-$2,000
- Annual fee: $49
- APR: 14.99% Variable
Features one of the lowest APRs available for secured cards, making it ideal if you occasionally need to carry a balance.
7. Self – Credit Builder Account with Secured Visa®
- Security deposit: Built through payments
- Annual fee: $25
- APR: 26.99% Variable
Unique hybrid product combining a credit-builder loan with a secured credit card, helping you build credit two ways at once.
8. Mission Lane Visa® Credit Card
- Security deposit: None (unsecured)
- Annual fee: $0-$59
- APR: 26.99%-29.99% Variable
Offers clear upgrade paths and credit line increases based on payment history, with some applicants qualifying for a $0 annual fee.
9. Secured Sable ONE Credit Card
- Security deposit: $200 minimum
- Annual fee: $0
- APR: 24.99% Variable
Innovative card offering up to 2% cash back and the possibility to graduate to an unsecured card in as little as 4 months.
10. Applied Bank® Secured Visa® Gold Preferred® Credit Card
- Security deposit: $200 minimum
- Annual fee: $48
- APR: 14.99% Fixed
Features a low fixed APR and reports to all three major credit bureaus, making it a solid choice for rebuilding credit.
Tips for Success with Bad Credit Cards
- Always pay on time: Payment history accounts for 35% of your credit score
- Keep credit utilization low: Try to use less than 30% of your available credit
- Monitor your credit score: Many of these cards offer free credit score tracking
- Graduate when possible: Look for opportunities to upgrade to better cards as your credit improves
- Avoid carrying balances: Despite low APRs on some cards, paying in full each month is best for building credit
How to Choose the Right Card
Consider these factors when selecting a card:
- Whether you can afford a security deposit
- Annual fees and other charges
- APR (especially if you might carry a balance)
- Reporting to all three credit bureaus
- Upgrade possibilities
- Additional features like rewards or credit monitoring
Frequently Asked Questions
Q: How long will it take to improve my credit score with these cards?
A: With responsible use, you can typically see improvement in your credit score within 6-12 months. Factors that influence this timeline include your payment history, credit utilization, and existing credit issues. Consistently making on-time payments and keeping your credit utilization low will help you see faster improvements.
Q: Can I get approved for these cards with a bankruptcy on my record?
A: Yes, many of these cards, especially secured cards, are available to people with bankruptcy on their records. Secured cards like the OpenSky® Visa® and First Progress cards don’t even require a credit check. However, you typically need to wait until your bankruptcy is discharged, and some cards may require that the bankruptcy be at least one year old.
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