Best credit cards for bad credit of August 2023
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BLUEPRINT
Updated 4:57 a.m. ET Aug. 2, 2023
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Everyone makes mistakes. However when it comes to making financial missteps, an apology can’t help. That’s where credit cards for bad credit come in. Cards in this category have less strict underwriting criteria than other types of credit cards, making it easier to regain your financial footing through responsible card usage.
The best credit cards for bad credit will report to all three credit bureaus and some either offer a path to “graduate” from a secured card to an unsecured card and get your security deposit back — or in some cases, require a minimal deposit or no deposit at all. We analyzed a broad swath of credit cards in this category, from a variety of issuers, to curate a list of the very best credit cards for bad credit.
However, be sure to compare the cards below to other credit cards in this category to view them outside of the context of just our list. Though there are a wide range of cards, our list may not have the best credit card for your particular credit profile or needs. Here are our selections.
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Petal® 2 “Cash Back, No Fees” Visa® Credit Card *
The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
: Best credit card for bad credit
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Discover it® Secured Credit Card *
The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
: Best for graduating to an unsecured card
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Capital One Platinum Secured Credit Card *
The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
: Best for potentially lower opening deposit
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Petal® 1 “No Annual Fee” Visa® Credit Card *
The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
: Best for looking beyond traditional credit scores
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Tomo Credit Card *
The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
: Best for newcomers to the U.S.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 35+ cards analyzed.
- 10 data points considered.
- 5-step fact-checking process.
Best credit cards for bad credit August 2023
Best credit card for bad credit
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
*The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for graduating to an unsecured card
Discover it® Secured Credit Card
*The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for potentially lower opening deposit
Capital One Platinum Secured Credit Card
*The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for looking beyond traditional credit scores
Petal® 1 “No Annual Fee” Visa® Credit Card
*The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for newcomers to the U.S.
Tomo Credit Card
*The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Compare the best credit cards for bad credit:
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Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
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The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card * The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is everything a card to help build credit should be: It charges no annual fees, doesn’t have a security deposit requirement and earns rewards to boot. Plus, it reports to the three main credit bureaus and offers the possibility of a credit line increase after six months of on time payments.
- Annual fee: $0.
- Secured or unsecured: Unsecured.
- Rewards: Earn 1% cash back right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% to 10% cash back at select merchants.
- Standard APR: 17.99% to 31.99% variable APR.
- Other benefits and drawbacks: Petal can approve you for a card based on your banking history with no credit check required. The card comes with basic Visa benefits including access to roadside dispatch, auto rental collision insurance and theft coverage. Those with major blemishes in their credit history may not be approved for this version, but for the Petal 1 or Petal 1 Rise versions, which have different attributes.
The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Discover it® Secured Credit Card * The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. doesn’t require a credit history to apply, unlike many other secured cards. And, the issuer will review your account automatically after seven months to see if you qualify to convert to an unsecured version and get your deposit back.
- Annual fee: $0.
- Secured or unsecured: Secured.
- Rewards: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
- Standard APR: 10.99% intro APR on balance transfers for six months, then a 28.24 variable APR applies on purchases and balance transfers. There’s a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms).
- Other benefits and drawbacks: Discover will automatically match all the cash back earned at the end of the first year and offers monthly account reviews (starting after seven months with the card) with the potential to have your deposit refunded after demonstrating responsible payment behavior.
The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Capital One Platinum Secured Credit Card * The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is one of the only secured cards with which you can potentially be approved for a higher credit limit than your initial deposit. Depending on your credit profile, you could qualify for a credit line of up to $200 with a $49, $99 or $200 minimum refundable deposit.
- Annual fee: $0.
- Secured or unsecured: Secured.
- Rewards: None.
- Standard APR: 30.49% variable APR on purchases and balance transfers.
- Other benefits and drawbacks: Those who qualify can put down an opening deposit of $49 or $99 to get a $200 credit line. And, the initial opening deposit can be funded over 35 days in 20 increments, rather than all at once. But note that some applicants will be required to put down the full $200 deposit. Capital One will notify you what your minimum deposit amount is if you’re approved for the card.
The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The Petal® 1 “No Annual Fee” Visa® Credit Card * The information for the Petal® 1 “No Annual Fee” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is one of just a few unsecured credit cards without annual or account opening fees that are available to those just starting to build their credit. Most cards that fit this description are student cards that often require proof of school enrollment. The Petal 1 Card has no such requirement, making it a great low-cost option for anyone not in school.
- Annual fee: $0.
- Secured or unsecured: Unsecured.
- Rewards: 2% to 10% cash back at select merchants.
- Standard APR: 24.99% to 34.49% variable APR.
- Other benefits and drawbacks: The card comes with basic Visa benefits such as roadside dispatch access and theft protection.
The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re fiscally fit but lack a meaningful credit history, the Tomo Credit Card * The information for the Tomo Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. merits consideration. The company looks at your bank information and salary to determine approval, which makes it ideal for someone new to the U.S. with a job but no U.S. credit history.
- Annual fee: $2.99 per month.
- Secured or unsecured: Unsecured.
- Rewards: None.
- Standard APR: None.
- Other benefits and drawbacks: The card comes with World Elite Mastercard benefits including credits from DoorDash, Lyft and HelloFresh, a ShopRunner membership and cell phone protection of up to $1,000 per 12-month period. However, some may find that the charge card’s seven-day autopay schedule is too restrictive.
Types of credit cards for bad credit
Generally, there are two types of credit cards for those with bad credit: secured and unsecured.
A secured credit card requires an upfront security deposit, usually equal to the amount of the credit line you’re seeking. Secured cards typically have a minimum opening deposit requirement and a maximum amount you can deposit. Unsecured cards require no security deposit but may have higher fees and/or interest rates to carry a balance as the issuer is taking on more risk without your security deposit.
Be cautious when evaluating unsecured cards for people with bad credit. It may sound tempting to not have to submit a security deposit, but if you’re looking at a subprime product with opaque terms and expensive fees, you’re probably better off in the long run saving up $200 or so for the minimum deposit on a secured card from a reputable issuer.
Should I get a credit card for bad credit?
If you are in a position to begin building or repairing your credit, then a credit card for bad credit can be a stepping stone for improvement. But it’s important to be aware of the many choices available, what the differences are and how to use a credit card effectively to help you reach your goals.
“Understanding all your options is so important to your financial wellness. This is particularly true for people with blemished credit history, who have the most to lose by choosing the first company to approve their application. We know from experience that stigma prevents many folks from discussing their financial challenges with friends, family, or even financial experts who offer confidential advice. But they aren’t alone. Seeking reputable sources of information can save significant stress and money in the long run,” says Jim Triggs, President & CEO of Money Management International.
When choosing a credit card for bad credit, make sure to consider all the ways that the card might be able to support you on your credit-improvement journey. Look for low or no annual fees, reporting to the credit bureaus and whether the card will allow you to convert to an unsecured version after a period of time.
Pros and cons of credit cards for bad credit
Like any financial product, there are both pros and cons to credit cards designed for those with bad credit.
Like any financial product, there are both pros and cons to credit cards designed for those with bad credit.
Pros include:
- Can help you build or repair credit if used responsibility.
- Potential to earn rewards—with some cards, but not all.
- Perks and benefits with some cards like purchase protection or cell phone insurance.
Cons include:
- May charge high fees and/or interest rates.
- Terms and conditions on some cards can be unclear.
- Some secured cards don’t offer a path to “graduate,” so when your credit improves, you’re better off applying for a new card account and closing the old one (after paying it off in full) to get your deposit back.
How to build your credit score with a credit card for bad credit
A credit card for bad credit is an opportunity for a fresh start. Whichever card you choose, the most important thing when it comes to building up your credit is to pay your bill on time, every time. Ideally, you’ll also pay your entire balance each month as well—which helps prevent debt from building up and also typically lets you avoid interest charges.
What causes a bad credit score?
There are several factors that can affect your credit negatively. Perhaps the one with the largest impact is paying your bill late or not at all. Other factors that drag down your credit score include carrying too much debt on your card or cards (i.e. maxing out your credit limit), and applying for too many lines of new credit.
When you are brand new to credit, you’re also unlikely to have a great score as the length of your credit history also factors into your overall credit score. And, the other contributing factor is your credit mix, or the types of credit you have. Generally, a mix of revolving credit—like credit cards—and installment credit, like a car loan or a mortgage, can help in attaining the best credit score, assuming you pay your bills in full and on time each month.
How to apply for a credit card for bad credit
When you have bad credit, there are a few things to keep in mind when applying for a credit card. First, have realistic expectations. Cards offering huge welcome bonuses and rich rewards are generally aimed at those with excellent credit. When you have bad credit, your main goal should be to get a card that helps you improve your current credit profile.
The actual process of applying for a credit card is the same regardless of anyone’s credit score. You can apply online by visiting the issuer’s website and clicking the “apply now” links. You’ll typically be asked to provide some identifying information including your full legal name, address, Social Security number or ITIN if required, and in some cases you’ll be asked to provide some basic financial information such as your salary and debt obligations like your rent.
You’ll typically receive an answer in a few minutes when you apply online. Be aware that almost any time you apply for a new line of credit, including a credit card, a hard inquiry will be made to your credit report for the issuer to determine if they should approve you or not—which in turn can temporarily ding your credit further. There are some cards for bad credit that don’t check your score, however, and these cards usually highlight it as a feature on their main card page.
Credit cards to watch out for
When you have bad credit it may seem like any credit card that will approve you will do. But that’s not the case. As our list above shows, there are some good options for those with bad credit, including cards with low or no annual fees and even some that earn rewards.
Here’s what to avoid in a card for bad credit:
- High annual fees and account opening fees. Why pay these when there are less-expensive options available?
- A fee for increasing your credit limit. The best cards for bad credit will automatically consider you for a higher credit line at no additional charge.
- An annual fee plus a monthly fee. One or the other might be justifiable, but never choose a card that charges both.
- Cards with punitive interest rates. Ideally you’d pay your balance in full and on time every month, but that’s not always realistic. Although cards for those with bad credit often have higher-than-average interest rates, since you’re considered a bigger risk to the issuer, there’s no reason to pay at the top end of range when there are other cards that carry more palatable APRs.
How to choose the best credit card for bad credit
When trying to choose between the various options for credit cards for bad credit, there are a few things to consider carefully:
Are you able to commit to a secured card?
Secured credit cards generally have the most favorable terms, including low or zero annual fees, and may include other helpful benefits like a path to graduate to an unsecured version of the card. But the big drawback is that you have to be willing and able to fork over a deposit equal to the amount of credit you’re seeking. Most secured cards have required opening deposit minimums that range from $100 to $500, and it can be a challenge to come up with that amount.
If you can put together the minimum deposit for a good secured card, that will often be the best way forward. But if not, an unsecured credit card might be your best bet.
Can you tolerate an annual fee?
Most unsecured cards for those with bad credit will charge an annual fee, which is a trade-off for not putting up a security deposit. But, steer clear of cards that charge additional fees on top of an annual fee. Account opening fees, account management fees and credit limit request fees are all red flags that the card you’re looking at will be an unnecessarily expensive way to gain access to credit.
Don’t apply to multiple cards at once
If you aren’t sure you’ll be approved for the card you’re eyeing, don’t apply for a number of cards hoping one will work out. Every time you apply for a new credit card, the hard inquiry made by the issuer to the consumer credit reporting bureaus will ding your score, and multiple inquiries in a row is an unwelcome signal to an issuer that you may be overextending yourself.
How to pre-qualify for a credit card for bad credit
Although there are a number of pre-qualification tools available online, it’s important to know that being pre-qualified is not the same thing as being approved. When you’re pre-qualified for a credit card, it simply means you’re likely to be approved when you apply, but it’s not a guarantee.
When it comes to bad credit, you want to avoid as much as possible having a credit card application denied. Your best bet when it comes to being pre-qualified for a credit card is to visit an issuer’s site and see if they have a pre-qualification or preapproval tool. These features will perform a “soft” credit check that won’t hurt your score and will let you know the likelihood of receiving approval for a particular credit card.
Methodology
We have spent hours analyzing hundreds of credit cards. Our methodology in selecting the best credit cards for bad credit was based on factors including annual fees, any other account-related fees, if the card reported to the three major credit bureaus, if a card offered rewards and/or other benefits and for secured cards, if the card offered a path to upgrade to an unsecured version. That analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings.
The easiest credit cards for people with bad credit to get are generally secured cards, as the risk to the issuer of you defaulting on your balance is minimal since they hold your deposit. However, some secured cards won’t approve those with recent or still-pending bankruptcies.
If your credit is very much in the recovery and repair stage, a credit-builder card is likely to be your best bet. A card like the Secured Chime Credit Builder Visa® Credit Card, which reports to all three credit bureaus and charges no annual fees and no interest¹, could be a good place to start.
¹Out-of-network ATM withdrawal fees apply except at MoneyPass ATMs in a 7-Eleven location or any Allpoint or Visa Plus Alliance ATM.
Bad credit can be defined by a FICO score typically between 300 and 579. The FICO scoring model is the most widely used measure of credit score and the entire scale ranges from 300 to 850. These numbers are used to predict the likelihood of someone defaulting on their credit obligations, and the lower the score, the higher the probability of that person not paying their debts.
It’s unlikely you’ll get approved for a high-limit credit card with bad credit. However, it is possible to be approved for credit lines as high as $5,000 or more if you have a secured card account that allows you to make an equivalent deposit.
Some cards for bad credit will allow you to do a balance transfer, like the Discover it® Secured Credit Card * The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. and the DCU Visa® Platinum Secured Credit Card * The information for the DCU Visa® Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. . But before doing a balance transfer, it pays to do the math and consider both the price of any balance transfer fees and if the card you’re transferring debt to has a lower APR than the card on which you currently have the debt.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
