If you’ve happen to come upon this page looking for the best credit card for bad credit, there are some really good options listed below. Whether you’ve made bad choices and developed bad credit, or you’ve recently become an adult and just haven’t had the opportunity to build your credit, there are still options out there.
*Scroll down to view all the best credit cards for bad credit below if you want to go straight to the options.
*Before going with a secured credit card meant for poor credit, see if you’re able to get approved for a good rewards credit card for Average credit, like the Barclaycard Rewards MasterCard here.
Watch my intro video if you prefer to not do too much reading…
Bad Credit Won’t Get You Rewards!
Everyone needs a credit card these days. Not only for convenience, but to really help establish a good credit foundation. If you’ve been looking around at all the most popular credit cards in the market, you’ve probably come to realize that they all require good to excellent credit. After all, creditors aren’t likely to risk issuing high credit limits, rewards, miles, and bonuses to a consumer who might not be able to pay back their debt.
Rebuild With Secured Credit Cards…
If you really do have poor to fair credit, then it’s time to take steps towards rebuilding. Fortunately, Secured Credit Cards exist for this sole purpose.
Secured credit cards are quite different from your traditional credit cards (unsecured credit cards) in many ways.
The main difference is in how your credit limit is determined. With a traditional credit card that offers many benefits, your credit limit is determined by your credit score or credit profile. The more credit history you have, and the better your score is, the higher your credit limit will generally be.
With secured cards, your credit limit is instead determined by a security deposit that you send in with your application. So, let’s say you send in a security deposit of $750. Your credit limit will then default to $750. Since you’re securing it with your own money, the issuer has no problem with approving you for a credit card.
It’s important to point out that your security deposit with a secured card doesn’t work the same way as a prepaid card would work, where your deposit is used to pay off your spending balances. Rather, that security deposit is simply stored away in a savings account waiting to be returned to you after you’ve closed the account in good standing.
Also, unlike prepaid cards, your secured credit card account will be reported to the major credit bureaus, which in turn CAN affect your credit in a positive way if you’re responsible.
The Bad That Comes With Secured Cards…
Well, if you have bad credit, then secured cards are kind of a necessity. You just don’t have another choice.
Even though this is the case, I should still point out all the negatives that come with carrying a secured credit card.
As I spoke about above, these cards offer no value in using them other than the fact that they can help you rebuild your credit, and I suppose having the convenience of using a credit card. But, you’ll earn no miles, no rewards, no cash back, and no bonuses with them.
Probably the most important thing to prepare for with these secured credit cards are all the fees! ALL of these credit cards will have higher regular interest rates and/or annual fees. Although there are exceptions, the general rule is if the card has a higher annual fee, then the interest rate will be lower – and vice versa. So, keep that in mind when choosing which is the best credit card for bad credit for your particular situation.
Here’s how I would go about it. If you KNOW you are well prepared to be responsible and pay off your monthly balances on time, all the time, then I would pick a card with the lowest annual fee. Because you’ll be paying it off in full monthly, you won’t have to worry about interest accruing. One of the lowest annual fees can be had with the First Progress Platinum Elite MasterCard listed below (currently at $29).
On the other side, if you have a feeling there will be months where you’ll be carrying a balance, pick the card with the lowest regular interest rate. The annual fee will probably be higher, but at least you won’t be penalized too much with the interest on your balance. The First Progress Platinum Prestige MasterCard is currently at a reasonable 11.99% (Variable), and if you’re military or family of military, definitely look at the USAA secured cards below with 9.90% (Variable) rates.
Browse The Features Of All The Cards Below Before Deciding:
First Progress Platinum Elite MasterCard® Secured Credit Card
Nationwide Program though not yet available in NY, IA, AR, or WI
Receive Your Card More Quickly with New Expedited Processing Option
No Credit History or Minimum Credit Score Required for Approval
Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
24/7 Online Access to Your Account
Annual Fee: $29
Apply Now
First Progress Platinum Prestige MasterCard® Secured Credit Card
Nationwide Program though not yet available in NY, IA, AR, or WI
Receive Your Card More Quickly with New Expedited Processing Option
No Credit History or Minimum Credit Score Required for Approval
Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
24/7 Online Access to Your Account
Annual Fee: $44
Apply Now
First Progress Platinum Select MasterCard® Secured Credit Card
Nationwide Program though not yet available in NY, IA, AR, or WI
Receive Your Card More Quickly with New Expedited Processing Option
No Credit History or Minimum Credit Score Required for Approval
Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
24/7 Online Access to Your Account
Annual Fee: $39
Apply Now
USAA Secured Platinum American Express Card
It’s a real credit card – not a prepaid or debit card, that helps you build or improve your credit score.
When you apply – you’ll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
Your CD is a security deposit – the money you put in upfront, from $250 to $5,000, is the card’s credit limit.
Earn interest on your CD – your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don’t default on your payments.
Start building your credit – opening a CD lets you get a credit card even if you don’t have a credit history or have bad credit.
Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
If you are not eligible, USAA credit cards and other products may still be available.
Regular APR: 9.90%(Variable)
Annual Fee: $35
Apply Now
USAA Secured Platinum Card
It’s a real credit card – not a prepaid or debit card, that helps you build or improve your credit score.
When you apply – you’ll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
Your CD is a security deposit – the money you put in upfront, from $250 to $5,000, is the card’s credit limit.
Earn interest on your CD – your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don’t default on your payments.
Start building your credit – opening a CD lets you get a credit card even if you don’t have a credit history or have bad credit.
Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
If you are not eligible, USAA credit cards and other products may still be available.
Regular APR: 9.90%(Variable)
Annual Fee: $35
Apply Now
Horizon Gold Credit Card
Guaranteed Approval
Bad Credit Accepted
No Employment Check
Reports to a Major Bureau
Regular APR: N/A
Annual Fee: $24.95 benefits plan membership will be auto-debited monthly
Apply Now
Open Sky Secured Visa® Credit Card
No Credit Check for Approval
No Checking account required
Reports to All 3 Major Credit Bureaus!
All Applications considered
Quick and easy online application
4 Ways to Fund Your Card
Accepted Everywhere you see the Visa Logo
Choose your own Credit Limit $200-$3000
Fast Rush Shipping
FREE 24/7 Online Account Access
Regular APR: 14.25%(Variable)
Annual Fee: $50
Apply Now