Top 10 Credit Cards for Bad Credit
Credit cards for bad credit are financial tools designed for individuals with low credit scores or limited credit histories. These cards often come with higher interest rates and fees, but they provide a way for individuals to build or rebuild their credit by demonstrating responsible credit use over time.
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A key feature of credit cards for bad credit is that they often have lower credit limits and may require a security deposit, especially in the case of secured credit cards. The security deposit acts as collateral and reduces the lender's risk, making it easier for individuals with poor credit to qualify. Responsible use of these cards, such as making timely payments and keeping the balance low relative to the credit limit, can lead to gradual improvements in credit scores. Some issuers also report to all three major credit bureaus, which is crucial for rebuilding credit. Additionally, after demonstrating responsible use over a period, some secured credit cards may transition to unsecured ones, offering better terms and higher credit limits. It's essential to carefully review the terms and conditions of these cards to avoid high fees and ensure they align with your financial goals.
Discover it® Secured Credit CardView AllDiscover it® Secured Credit Card - No annual fee, cashback, credit-building secured card.
OpenSky® Secured Visa® Credit CardView AllOpenSky® Secured Visa® Credit Card - No credit check required, refundable deposit, builds credit history.
Capital One® Secured Mastercard®View AllCapital One® Secured Mastercard® - A credit-building card with refundable security deposit.
Credit One Bank® Platinum Visa® for Rebuilding CreditView AllCredit One Bank® Platinum Visa® for Rebuilding Credit - Credit-building card with cashback rewards and flexible payments.
Citi® Secured Mastercard®View AllCiti® Secured Mastercard® - Credit-building card with security deposit, no annual fee.
Secured Sable ONE Credit CardView AllSecured Sable ONE Credit Card - Secured credit card with no credit check and rewards.
First Progress Platinum Elite Mastercard® Secured Credit CardView AllFirst Progress Platinum Elite Mastercard® Secured Credit Card - No credit history required; refundable deposit needed.
Green Dot Primor® Visa® Gold Secured Credit CardView AllGreen Dot Primor® Visa® Gold Secured Credit Card - Secured card, no credit check, reports to major bureaus.
BankAmericard® Secured Credit CardView AllBankAmericard® Secured Credit Card - Secured card for building or rebuilding credit history.
Top 10 Credit Cards for Bad Credit
1.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a credit-building tool that requires a refundable security deposit, with deposits starting at $200. It offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% on all other purchases. Cardholders can benefit from no annual fee, free access to their FICO® Credit Score, and Discover's Cashback Match®, which matches all cash back earned in the first year.
Pros
Builds credit- No annual fee
- Cashback rewards
- Free FICO score
- 2x Cashback match first year.
Cons
Requires security deposit- High APR
- Limited credit limit
- No travel rewards
- Limited international acceptance.
2.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. With no credit check required for approval, it offers an accessible option for those with poor or limited credit histories. Cardholders benefit from regular reporting to major credit bureaus, which can help improve credit scores over time. The card also features a modest annual fee but does not offer rewards.
Pros
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No credit check required
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Reports to all three major bureaus
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Low annual fee
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Flexible credit limits
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Easy application process.
Cons
- **
No rewards program
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High APR
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No upgrade path
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Requires a security deposit
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Limited additional benefits.
3.
Capital One® Secured Mastercard®
The Capital One® Secured Mastercard® is a credit card designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit as collateral, which determines the credit limit. With responsible use, such as making timely payments, cardholders can improve their credit score over time. The card offers features like no annual fee, fraud coverage, and access to credit-tracking tools, making it a practical option for those aiming to establish a solid credit history.
Pros
- No annual fee
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Reports to major credit bureaus
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Customizable deposit
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Credit-building opportunities
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Easy account management.
Cons
- High variable APR
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No rewards program
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Foreign transaction fees
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Limited credit line
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Requires security deposit.
4.
Credit One Bank® Platinum Visa® for Rebuilding Credit
The Credit One Bank® Platinum Visa® for Rebuilding Credit is designed for individuals aiming to improve their credit scores. It offers 1% cash back on eligible purchases, including gas, groceries, and internet, cable, and mobile phone services. With no security deposit required, it provides an accessible option for those with fair to poor credit. Cardholders benefit from free access to their Experian credit score and customizable notifications, aiding in better financial management. Annual fees and APR vary based on creditworthiness.
Pros
- No security deposit
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Pre-qualification without credit impact
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Rewards on eligible purchases
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Free credit score tracking
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Flexible payment options.
Cons
- Annual fee
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High APR
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Limited credit limit increases
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Mixed customer service reviews
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Foreign transaction fees.
5.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is a credit-building tool designed for individuals with limited or no credit history. It requires a refundable security deposit, which sets the credit limit. This card offers access to FICO® score tracking and various Citi perks, including identity theft protection and 24/7 customer service. It reports to all three major credit bureaus, aiding in credit score improvement with responsible use. However, it doesn't offer rewards or cashback incentives.
Pros
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Builds credit history
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Low annual fee
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Reports to all three credit bureaus
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No penalty APR
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Can graduate to unsecured card.
Cons
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Requires security deposit
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Limited rewards
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High APR
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No signup bonus
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Limited additional benefits.
6.
Secured Sable ONE Credit Card
The Secured Sable ONE Credit Card is designed to help individuals build or rebuild their credit. With no credit check required, it offers accessible approval. Cardholders earn 2% cash back on select purchases and 1% on all others. The card requires a refundable security deposit, which sets the credit limit. Additionally, it reports to major credit bureaus, aiding in credit score improvement. Users benefit from zero annual fees and a straightforward, user-friendly application process.
Pros
- No annual fee
- Credit building
- Cashback rewards
- No credit check
- Easy application process.
Cons
- Security deposit required
- High APR
- Limited benefits
- Restricted to U.S. residents
- No upgrade path.
7.
First Progress Platinum Elite Mastercard® Secured Credit Card
The First Progress Platinum Elite Mastercard® Secured Credit Card is designed to help individuals build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. This card reports to all three major credit bureaus, promoting positive credit history with responsible use. Featuring a low annual fee and no minimum credit score requirements, it's accessible to those with limited or poor credit, providing an effective tool for credit improvement.
Pros
- No credit history required
- reports to all three credit bureaus
- refundable deposit
- low annual fee
- available nationwide.
Cons
- No rewards program
- high APR
- requires a deposit
- annual fee
- limited benefits.
8.
Green Dot Primor® Visa® Gold Secured Credit Card
The Green Dot Primor® Visa® Gold Secured Credit Card is designed to help individuals build or rebuild their credit history. With a low fixed APR, it requires a refundable security deposit ranging from $200 to $5,000, which determines the credit limit. The card reports to all three major credit bureaus, making it a solid option for those looking to improve their credit score. It does not require a minimum credit score for approval, but it does have an annual fee.
Pros
- No minimum credit score requirement
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Reports to all three credit bureaus
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Low fixed interest rate
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Helps build/rebuild credit
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Easy online application.
Cons
- Requires a security deposit
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High annual fee
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No rewards program
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Limited benefits
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High foreign transaction fees.
9.
BankAmericard® Secured Credit Card
The BankAmericard® Secured Credit Card is a secured credit card designed to help individuals build or rebuild their credit history. It requires a refundable security deposit, which typically determines the credit limit. The card offers benefits such as free access to your FICO® Score, fraud protection, and the ability to transition to an unsecured card with responsible use. It also features relatively low fees compared to other secured cards, making it a practical option for credit improvement.
Pros
- Helps build credit
- refundable deposit
- reports to all three bureaus
- no annual fee
- access to FICO score.
Cons
- High APR
- no rewards
- security deposit required
- limited benefits
- foreign transaction fee.