Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews.
The information for the following product(s) has been collected independently by Business Insider: U.S. Bank Cash+® Visa® Secured Card, U.S. Bank Altitude® Go Visa® Secured Card, Bank of America® Customized Cash Rewards Secured Credit Card, U.S. Bank Cash+® Visa Signature® Card, U.S. Bank Altitude® Go Visa Signature® Card. The details for these products have not been reviewed or provided by the issuer.
Introduction to Credit Cards for Bad Credit
Having a low credit score can make it hard to get approved for the best credit cards and other types of loans. Even if you do, you’ll often have higher variable interest rates and less favorable loan terms than applicants with excellent credit.
Believe it or not, credit cards can boost your credit score if used responsibly. Credit card issuers report your financial activity to the three credit bureaus, so you can build credit with a credit card by paying off the outstanding balance on time in full each month.
Secured credit cards are specifically geared toward consumers with low credit. They’re backed by a deposit of your own money, so there’s less risk of default for the issuer and more incentive for you to pay them off so you can get your money back. Many secured card issuers will review your usage history after a few months and automatically offer you an upgrade to an unsecured credit card if you have been timely and consistent in repayment each month.
This guide explores some of the best credit cards to consider if you have poor or low credit, whether you’re starting from scratch or are working on rebuilding your credit.
Compare the Top Credit Cards for Bad Credit
Discover it® Secured Credit Card
Regular APR
28.24% Variable
Earn Unlimited Cashback Match™
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Offers cash-back rewards, which isn’t a given for secured credit cards
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Discover matches cash back after your first account year
-
con icon
Two crossed lines that form an ‘X’.Other secured cards let you start with lower minimum security deposits
-
con icon
Two crossed lines that form an ‘X’.You must fund the security deposit from a bank account
Product Details
- No credit score required to apply.
- No Annual Fee, earn cash back, and build your credit history.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
- Terms and conditions apply.
Capital One Quicksilver Secured Cash Rewards Credit Card
Regular APR
29.99% Variable
Recommended Credit
Limited, No History
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Earns 1.5% cash back on all purchases with no limits
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.You can get approved for this card with limited credit
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Ability to increase credit line and potential to improve credit score with responsible use
-
con icon
Two crossed lines that form an ‘X’.No welcome bonus
-
con icon
Two crossed lines that form an ‘X’.Because it’s a secured credit card, you’ll have to put down a security deposit for your initial credit line
-
con icon
Two crossed lines that form an ‘X’.High APR if you carry a balance
Product Details
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you’re approved in seconds
- Put down a refundable $200 security deposit to get a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
U.S. Bank Cash+® Visa® Secured Card
Regular APR
29.24% Variable
Recommended Credit
New/Rebuilding
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Great cash-back earning rates with the ability to choose your own 5% categories
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Build credit with responsible use over time and you may be able to automatically graduate to a non-secured card
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.No annual fee
-
con icon
Two crossed lines that form an ‘X’.Requires a security deposit ($300 minimum)
-
con icon
Two crossed lines that form an ‘X’.5% cash back categories capped at $2,000 in combined spending per quarter
-
con icon
Two crossed lines that form an ‘X’.No welcome bonus
Product Details
- The information related to the U.S. Bank Cash+® Visa® Secured Card has been collected by Business Insider and has not been reviewed by the issuer.
- Earn 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose
- Earn 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Center
- Earn 2% cash back on eligible purchases in your choice of one everyday category (like gas stations and EV charging stations, grocery stores and restaurants)
- Earn 1% cash back on all other eligible purchases
- Option to choose your payment due date
- Select to set up Autopay
- $0 annual fee
U.S. Bank Altitude® Go Visa® Secured Card
Regular APR
29.24% Variable
Recommended Credit
New/Rebuilding
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Great earning rates on dining, gas, streaming, and groceries
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Build credit with responsible use over time and you may be able to automatically graduate to a non-secured card
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Annual streaming credit
-
con icon
Two crossed lines that form an ‘X’.Requires a security deposit ($300 minimum)
-
con icon
Two crossed lines that form an ‘X’.No welcome bonus
Product Details
- The information related to the U.S. Bank Altitude® Go Visa® Secured Card has been collected by Business Insider and has not been reviewed by the issuer.
- Earn 4X points on dining, takeout and restaurant delivery
- Earn 2X points at grocery stores, grocery delivery, streaming services, gas stations and EV charging stations
- Earn 1X point on all other eligible purchases
- Earn $15 streaming credit for annual streaming service purchases like Netflix and Spotify®
Bank of America® Customized Cash Rewards Secured Credit Card
Regular APR
28.24% Variable
Recommended Credit
New/Rebuilding
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Choose your own 3% cash back category each month
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Build credit with responsible use over time and you may qualify to have your security deposit returned
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.No annual fee
-
con icon
Two crossed lines that form an ‘X’.Requires a security deposit ($200 minimum)
-
con icon
Two crossed lines that form an ‘X’.3% and 2% cash back categories are capped at $2,500 in combined spending per quarter
-
con icon
Two crossed lines that form an ‘X’.No welcome bonus
Product Details
- The information related to the Bank of America® Customized Cash Rewards Secured Credit Card has been collected by Business Insider and has not been reviewed by the issuer.
- 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings
- 2% cash back when shopping at grocery stores and wholesale clubs
- 1% cash back from all other purchases
- You earn 3% and 2% cash back on your first $2,500 in combined choice of grocery store/wholesale club purchases each quarter, and then earn 1%
Discover it® Student Cash Back
Intro APR
0% intro APR for six months on purchases
Regular APR
18.24% – 27.24% Variable
Earn Unlimited Cashback Match™
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.From April 1 to June 30, 2024, you can earn 5% cash back at gas stations & electric vehicle charging stations, home improvement stores, and public transit on up to $1,500 in purchases after enrollment, then 1%
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Discover matches your cash back after the first year
-
con icon
Two crossed lines that form an ‘X’.Not the most rewarding cash-back card for non-bonus purchases
Product Details
- Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% – 27.24% applies.
- Terms and conditions apply.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Regular APR
18.24% – 32.24% Variable
Recommended Credit
No credit and limited credit to Excellent
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.No fees
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Earn 1% cash back on every purchase. Earn 1.25% back after making six on-time payments. Then, earn 1.5% back after making 12 on-time payments on your card
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.You can build credit with responsible credit use
-
con icon
Two crossed lines that form an ‘X’.N/A
Insider’s Take
If you have a limited credit history, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, may be easier to qualify for. The card doesn’t charge any fees and offers between 1.00% – 1.50% cash back on everyday purchases, making it one of the best credit cards for bad credit. If you’ve already got a good credit score, though, you should consider a different rewards credit card with better earnings and benefits.
Petal 2 Visa Credit Card
Capital One Platinum Secured Credit Card
Regular APR
29.99% Variable
Recommended Credit
Limited, Bad
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Minimum deposit ($49) is lower than with some other secured cards
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.You can be automatically considered for a higher credit line in as little as 6 months with no additional deposit
-
con icon
Two crossed lines that form an ‘X’.No rewards
Product Details
- No annual or hidden fees. See if you’re approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One’s mobile app
Capital One Platinum Credit Card
Regular APR
29.99% variable
Recommended Credit
Average, Fair and Limited
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.Automatically be considered for a higher credit line in as little as 6 months
-
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.No annual fee
-
con icon
Two crossed lines that form an ‘X’.No extra benefits and no rewards
Product Details
- No annual or hidden fees. See if you’re approved in seconds
- Be automatically considered for a higher credit line in as little as 6 months
- Help build your credit through responsible use of a card like this
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One’s mobile app
- Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you’re all set
- Pay by check, online or at a local branch, all with no fee – and pick the monthly due date that works best for you
Best Credit Cards for Bad Credit of May 2024
Credit Cards for Bad Credit Reviews
It’s hard to get a credit card if you have poor credit, because issuers are hesitant to offer money they worry will not be paid back. However, some issuers understand the struggles you may be facing and are eager to court your business, whether through rewards on everyday spend or by offering low security deposit requirements and easy approval.
These are the best credit cards for bad credit in 2024, according to Business Insider’s team of credit card experts.
Best For Rewards and Potential Upgrade to Non-Secured Card: Discover it® Secured Credit Card
The Discover it® Secured Credit Card is one of the best secured credit cards on the market today, because not only is there no annual fee, but you also get the opportunity to earn rewards. You’ll need to put down a cash deposit to get started, and you’ll secure a line of credit equal to that amount that you can use to begin building a responsible credit history.
If you use your card responsibly, you can also get your deposit back when you close or upgrade your account in good standing. Automatic reviews start at seven months to see if Discover can transition you to an unsecured line of credit and return your deposit.
In terms of rewards, the Discover it® Secured Credit Card lets you earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%), plus 1% back on all other purchases. Even better, Discover will match all the rewards you earn at the end of your first year through the Discover Cash Back Match program.
The Discover it® Secured Credit Card also gives you a free FICO score on your monthly credit card bill, and you can use this information to monitor your score as you improve your credit over time.
Discover it Secured Credit Card Review
Best for 1.5% Cash Back: Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card is a secured credit card that earns a straightforward 1.5% cash back on all purchases with no limits. This is a great card for folks with a fair credit score or limited credit history (less than three years) including students, people new to the U.S., or authorized users on someone else’s credit card — or those who have defaulted on a loan in the past five years.
To receive a $200 credit line, you’ll need to make an initial minimum deposit of $200, but depending on your creditworthiness you could get approved for a higher credit line with a larger deposit. You may be eligible for a higher credit limit after as little as six months of on-time payments.
Capital One Quicksilver Secured Card Review
Best for Choosing Bonus Rewards Categories: U.S. Bank Cash+® Visa® Secured Card
The U.S. Bank Cash+® Visa® Secured Card shares most of the features of its big sibling, the U.S. Bank Cash+® Visa Signature® Card
, except it doesn’t come with a welcome bonus and requires a security deposit. Because it’s a secured card, you’ll need to put down a deposit of $300 to $5,000 after you’re approved, and that amount becomes your credit limit.
This card is a great choice if you want to maximize your rewards earning by choosing your own bonus categories. You can earn 5% cash back in two eligible categories of your choice, on up to $2,000 in combined spending each quarter (then 1%) from the following list:
- Fast food
- Home utilities
- TV, internet, and streaming services
- Department stores
- Electronic stores
- Cell phone providers
- Sporting goods stores
- Furniture stores
- Movie theaters
- Gyms and fitness centers
- Ground transportation
- Select clothing stores
In addition, cardholders can choose one “everyday” 2% cash back category from grocery stores, gas stations, EV charging stations, or restaurants. All other purchases earn 1% cash back, with no limits.
It’s unusual to see a no-annual-fee secured credit card with such high earning rates, so if the card’s categories match up with your spending, it’s an excellent choice. US Bank also says that if you spend within your credit limit and pay your bill on time to build your credit, you may be able to automatically “graduate” to the U.S. Bank Cash+® Visa Signature® Card. Upon graduation, your security deposit will be returned. After that, you’ll get back your security deposit.
US Bank Cash Plus Secured Credit Card Review
Best for Dining and Takeout: U.S. Bank Altitude® Go Visa® Secured Card
If you spend a lot on dining, the no-annual-fee U.S. Bank Altitude® Go Visa® Secured Card is hard to beat. Cardholders earn 4x points on takeout, food delivery, and dining, 2x points at grocery stores, grocery delivery, streaming services, and gas stations (including EV charging), and 1 point per dollar on all other eligible purchases.
Each point is worth 1 cent toward travel, merchandise, gift cards, cash back, or statement credits through the card’s online rewards portal. The card also offers the opportunity to earn an automatic $15 credit each year when you pay for eligible streaming services for 11 consecutive calendar months.
Again, this card is most similar to the non-secured U.S. Bank Altitude® Go Visa Signature® Card
, except it doesn’t offer a welcome bonus and requires a security deposit of $300 to $5,000 (which becomes the amount of your credit limit). And with responsible use, you may be able to convert to the U.S. Bank Altitude® Go Visa Signature® Card and have your security deposit returned in the future.
US Bank Altitude Go Secured Credit Card Review
Best for Everyday Expenses: Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America® Customized Cash Rewards Secured Credit Card is another good option for maximizing your rewards earnings. You’ll earn 2% cash back at grocery stores and wholesale clubs, and can earn 3% cash back on up to $2,500 in spending each quarter (combined with 2% categories, then 1%) in one category you pick from the following list:
- Gas
- Online shopping
- Dining
- Travel
- Drug stores
- Home improvement/furnishings
All other purchases earn 1% cash back.
This card is an especially good choice if you’re a Bank of America Preferred Rewards member, because depending on your rewards tier, you could earn anywhere from 25% to 75% more rewards for your spending.
Because it’s a secured card, you’ll have to put down a security deposit (minimum $200), the amount of which will become your credit limit. Bank of America says it will periodically review your account and based on your overall credit history, you may be able to have your security deposit returned.
Bank of America Customized Cash Rewards Secured Credit Card Review
Best for Easy Approval for Students: Discover it® Student Cash Back
The Discover it Student Cash Back is specifically geared to students with limited credit history, so it may be considerably easier to qualify for when compared to other unsecured credit cards. You won’t pay an annual fee for this card, and you won’t pay a late fee on your first late payment.
You can also earn rewards with the Discover it Student Cash Back by enrolling each quarter to earn 5% cash back on up to $1,500 spent in quarterly rotating bonus categories (then 1%), and 1% back on all other purchases (from April 1 to June 30, 2024, you can earn 5% cash back at gas stations & electric vehicle charging stations, home improvement stores, and public transit on up to $1,500 in purchases after enrollment, then 1%). Like with its other cash-back credit cards, Discover will also match all the rewards you earn the first year.
Discover it Student Cash Back Card Review
Best for Increasing Cash Back: Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a step up from the Petal® 1 “No Annual Fee” Visa® Credit Card and is designed for consumers with limited credit histories who need help building credit. This card comes with no annual fee and no hidden fees, yet it’s a Visa credit card that can be used anywhere Visa is accepted worldwide. Not only that, but you may be able to qualify for a credit limit of up to $10,000 based on your credit profile, and you’ll earn rewards on your spending.
Cash back on eligible purchases is initially offered at 1%, but you’ll graduate to earning 1.25% back after six on-time payments then 1.5% back once you’ve made 12 on-time payments on your card. This credit card also works in conjunction with a handy app that helps you track your spending and set a budget for the month, and usage of the app is also free.
Petal 2 Visa Credit Card Review
Best for Low Security Deposit: Capital One Platinum Secured Credit Card
If you don’t want to put down a big security deposit, the Capital One Platinum Secured Credit Card is worth a look. You can start with a $49, $99, or $200 security deposit to open your account (with a credit line of $200). You’ll also have the option to increase your initial credit line by depositing more than the minimum amount, up to a maximum limit of $1,000.
The card doesn’t earn rewards, but it doesn’t have many fees either. After you show responsible use of your card over time, Capital One may consider upgrading you to the regular Capital One Platinum Card and return your security deposit.
The Capital One Platinum Secured Credit Card comes with a few perks like $0 fraud liability for unauthorized charges, CreditWise, Card Lock, 24/7 customer service, and AutoPay features.
Capital One Platinum Secured Credit Card Review
Best for Average or Limited Credit: Capital One Platinum Credit Card
Unlike most other card issuers, Capital One indicates what type of credit score you need to get approved for each of its cards. The Capital One Platinum Card is for “average credit,” which Capital One defines as having defaulted on a loan in the past five years, or “limited credit history” (defined as having a credit card or other credit for less than three years).
This card doesn’t offer any rewards, but it is an unsecured credit card, meaning you don’t have to put down a cash deposit as collateral. You may have to start out with a relatively low line of credit, but Capital One promises to reevaluate your credit line after you’ve made six on-time monthly payments.
Capital One Platinum Card Review
How to Choose a Credit Card for Bad Credit
Before you pick the best credit card for your situation, you’ll want to decide if you want a secured or unsecured credit card.
Secured credit cards are particularly easy to get approved for because you put up a cash deposit as collateral to get started. However, there are also unsecured credit cards for bad credit tailored to those looking to repair or build their credit.
You’ll also want to consider how and where you’ll use the card. A rewards-earning credit card is ideal, because you can get a little something back from every purchase. But if that seems too complicated and you just want a basic card to help build your credit, that’s fine too.
Using a card responsibly will help boost your credit over time, since keeping your credit utilization low and making on-time payments are the two biggest factors used in calculating your credit score. Once you have your finances on track and your credit score keeps climbing, it’s only a matter of time before you can get one of the best rewards credit cards offering bonus points and other enticing perks.
Credit Cards for Bad Credit Frequently Asked Questions
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is one of the easiest credit cards to get with poor credit, because the issuer considers a variety of financial factors beyond credit score alone when evaluating your application.
The U.S. Bank Altitude® Go Visa® Secured Card allows cardholders to earn bonus rewards on dining and other household expenses while building credit. With time and responsible repayment, you may be able to upgrade to an unsecured credit card. If you have average credit, consider the unsecured Capital One Platinum Card since it doesn’t require a security deposit.
Credit cards help you build credit by reporting your credit movements to the three credit bureaus. To build credit with a credit card, all you have to do is use your card for purchases you can afford to pay off. From there, pay your credit card bill early or on time each month. Over time, your positive credit usage will help boost your score.
To get a credit card if your credit is bad, a great first step is knowing your credit score to find out which cards you qualify for. From there, you could consider a card specifically geared to those who are working on building or repairing their credit score. Or, have a look at secured credit cards, which are typically easier to get.
Why You Should Trust Us: How We Chose the Best Credit Cards for Bad Credit
Having poor credit makes life much more challenging on the financial front. Knowing this, the Business Insider credit cards team evaluated dozens of products to ensure our recommendations improve your life in some way. Some common criteria we considered include:
Security deposit — Does this card require a security deposit? If it does, how much money do you have to put down in order to be approved?
Rewards — Most consumers with bad credit can’t earn rewards for their spend, but some cards on this list offer cash back on every dollar you spend.
Upgrade to an unsecured credit card — Secured credit cards are meant to be a stepping stone to better financial products. Many issuers on this list offer automatic upgrades to non-secured credit cards once a cardholder has proven a consistent history of responsible usage.
Learn more about how we rate credit cards at Business Insider.
SoFi Checking and Savings
Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured.
Discover more from Today Headline
Subscribe to get the latest posts to your email.
