This comprehensive guide will help you navigate the world of credit cards for bad credit, compare the best options, and learn strategies to improve your credit score.
Best Credit Cards for Bad Credit – Quick Answer
- Destiny® Mastercard®: Best for Building Your Credit Score
- Indigo® Platinum Mastercard®: Best for Pre-Qualification
- Milestone® Gold Mastercard®: Best for Quick Application Process
These three cards offer the best combination of features, benefits, and accessibility for individuals with bad credit. The Discover it® Secured Credit Card stands out for its rewards program, the Capital One Platinum Secured Credit Card for its potentially low security deposit, and the Petal® 2 Visa® Credit Card for being an unsecured option with the potential for rewards growth.
Start your journey to better credit today by comparing the best credit cards for bad credit and applying for the one that best fits your needs.
Find the Best Credit Card for Your Needs
| Company | Card name | Annual Fee | APR: | Max. Credit | Card System | Travel Insurance | |
|---|---|---|---|---|---|---|---|
| Destiny® Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more |
| Indigo® Platinum Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more |
| First Latitude Platinum Mastercard® Secured Credit Card | $25 | 23.74% | $2,000 | Master Card | No | Explore more |
| OpenSky® Plus Secured Visa® Credit Card | $0 | 29.99% | $3,000 | Visa | No | Explore more |
| First Progress Platinum Elite Mastercard® Secured Credit Card | $29 | 24.49% | – | Master Card | No | Explore more |
| PenFed Pathfinder® Rewards Visa Signature® Card | $95 | 17.99% | – | Visa | No | Explore more |
| PenFed Platinum Rewards Visa Signature® Card | $0 | 17.99% | – | Visa | No | Explore more |
| PenFed Power Cash Rewards Visa Signature® Card | $0 | 17.99% | – | Visa | No | Explore more |
| Milestone® Gold Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more |
| OpenSky® Secured Visa® Credit Card | $35 | 25.64% | $3,000 | Visa | No | Explore more |
| Surge® Platinum Mastercard® | $75 | 29.99% | $2,000 | Master Card | No | Explore more |
| Total Visa® Unsecured Credit Card | $75 | 35.99% | $300 | Visa | No | Explore more |
| Upgrade Card | $0 | 14.99% | $25,000 | Visa | No | Explore more |
|
| Upgrade Cash Rewards Visa® | $0 | 14.99% | $25,000 | Visa | No | Explore more |
| Upgrade Triple Cash Rewards Visa | $0 | 14.99% | $25,000 | Visa | No | Explore more |
| Company |
|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company | Overall Rating | Card name | Annual Fee | APR: | Max. Credit | Card System | Travel Insurance | Get Started |
|---|---|---|---|---|---|---|---|---|
|
| Destiny® Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more | |
|
| Indigo® Platinum Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more | |
|
| First Latitude Platinum Mastercard® Secured Credit Card | $25 | 23.74% | $2,000 | Master Card | No | Explore more | |
|
| OpenSky® Plus Secured Visa® Credit Card | $0 | 29.99% | $3,000 | Visa | No | Explore more | |
|
| First Progress Platinum Elite Mastercard® Secured Credit Card | $29 | 24.49% | – | Master Card | No | Explore more | |
|
| PenFed Pathfinder® Rewards Visa Signature® Card | $95 | 17.99% | – | Visa | No | Explore more | |
|
| PenFed Platinum Rewards Visa Signature® Card | $0 | 17.99% | – | Visa | No | Explore more | |
|
| PenFed Power Cash Rewards Visa Signature® Card | $0 | 17.99% | – | Visa | No | Explore more | |
|
| Milestone® Gold Mastercard® | $75 | 24.90% | $300 | Master Card | No | Explore more | |
|
| OpenSky® Secured Visa® Credit Card | $35 | 25.64% | $3,000 | Visa | No | Explore more | |
|
| Surge® Platinum Mastercard® | $75 | 29.99% | $2,000 | Master Card | No | Explore more | |
|
| Total Visa® Unsecured Credit Card | $75 | 35.99% | $300 | Visa | No | Explore more | |
|
| Upgrade Card | $0 | 14.99% | $25,000 | Visa | No | Explore more | |
|
| Upgrade Cash Rewards Visa® | $0 | 14.99% | $25,000 | Visa | No | Explore more | |
|
| Upgrade Triple Cash Rewards Visa | $0 | 14.99% | $25,000 | Visa | No | Explore more |
Note – Card terms and conditions may change over time. Always check the issuer’s website for the most up-to-date information before applying.
What Are Credit Cards for Bad Credit?
Credit cards for bad credit are financial products designed for individuals with low credit scores or limited credit history. These cards typically come in two varieties:
Secured Credit Cards: Require a security deposit that usually becomes your credit limit
Unsecured Credit Cards: Don’t require a deposit but often have higher fees and APRs
Types of Credit Cards for Bad Credit
While these cards may have less favorable terms compared to traditional credit cards, they offer an opportunity to build or rebuild credit when used responsibly.
Questions About Credit Cards for Bad Credit
Can I get a credit card with a 450 credit score?
While it’s challenging, it’s not impossible to get a credit card with a 450 credit score. You’ll likely need to consider secured credit cards or cards specifically designed for bad credit. Be prepared for higher fees and interest rates.
How long does it take to rebuild credit with a secured credit card?
The time it takes to rebuild credit varies, but you may see improvements in your credit score within 6-12 months of responsible use. Significant improvements can take 12-24 months or longer.
Are there any unsecured credit cards for bad credit with no annual fee?
Yes, some unsecured credit cards for bad credit offer no annual fee, such as the Capital One Platinum Credit Card. However, these cards may have higher APRs or fewer features compared to secured cards.
How often should I use my credit card to build credit?
Use your credit card regularly, but responsibly. Making small purchases and paying them off in full each month can help build a positive payment history. Aim to keep your credit utilization below 30% of your credit limit.
Top Credit Cards for Bad Credit in 2024
Based on our research, here are some of the best credit cards for bad credit.
While these cards can be useful tools for rebuilding credit, they typically come with higher APRs and fees compared to cards for good credit. It’s crucial to pay your balance in full each month to avoid high interest charges and to use the card responsibly to improve your credit score.
1. Destiny® Mastercard®
Destiny® Mastercard®
- Pre-qualify without impacting your credit score
- No security deposit required
- Enjoy easy online account access 24/7
- Monthly reporting to 3 major credit bureaus
Line of credit
$300
Interest-free payment period
25 Days
Annual fee
$75
Travel Insurance
No
ATM fee
1% of each transaction in USD
Interest
24.90% – 0.00%
The Destiny® Mastercard® is an excellent option for those looking to build or rebuild their credit. It offers a reasonable APR for a bad credit card and reports to all three major credit bureaus, which can help improve your credit score with responsible use.
2. Indigo® Platinum Mastercard®
Indigo® Platinum Mastercard®
- Ideal for borrowers with bad credit
- Starting credit limit of $300
- Annual fee $75 for the first year
- Easy online application
Line of credit
$300
Interest-free payment period
0 Days
Annual fee
$75
Travel Insurance
No
ATM fee
Interest
24.90% – 0.00%
The Indigo® Platinum Mastercard® stands out for its pre-qualification process, which allows you to check your likelihood of approval without a hard inquiry on your credit report. This feature is particularly valuable for those with bad credit who want to avoid unnecessary hard pulls.
3. Milestone® Gold Mastercard®
Milestone® Gold Mastercard®
- 24.90% regular purchase APR
- Monthly payments reported to three credit bureaus
- Starting credit limit of $300
- Pre-qualify with no impact on your credit score
Line of credit
$300
Interest-free payment period
0 Days
Annual fee
$75
Travel Insurance
No
ATM fee
Interest
24.90% – 0.00%
The Milestone® Gold Mastercard® offers a straightforward application process, making it a good choice for those who want to quickly apply for a credit card designed for bad credit. Like the other cards, it reports to all three major credit bureaus, helping you build credit with responsible use.
How to Choose a Credit Card for Bad Credit
When selecting a credit card for bad credit, consider the following factors:
- Annual fees and other charges
- APR (Annual Percentage Rate)
- Credit reporting to all three major credit bureaus
- Potential for credit limit increases
- Availability of rewards or cashback
- Additional perks or benefits
Pro Tip:
If you can afford the security deposit, a secured credit card often offers better terms and a clearer path to rebuilding your credit.
How To Improve Your Credit Score with a Credit Card
Using a credit card for bad credit responsibly can help improve your credit score over time. Here are some key strategies:
Steps to Improve Your Credit Score
Follow these steps to maximize the impact of your bad credit card on your credit score:
Make On-Time Payments
Payment history accounts for 35% of your FICO Score. Set up automatic payments to ensure you never miss a due date.
Keep Credit Utilization Low
Aim to use less than 30% of your available credit. This shows responsible credit management.
Monitor Your Credit Report
Regularly check your credit report for errors and dispute any inaccuracies you find.
Avoid Applying for Multiple Cards
Too many hard inquiries can negatively impact your score. Space out credit applications.
Be Patient
Credit improvement takes time. Consistently following these steps will yield results over months and years.
Applying for a Credit Card for Bad Credit
Warning:
Beware of predatory lenders offering ‘guaranteed approval’ with extremely high fees or interest rates. Always read the terms and conditions carefully before applying.
When applying for a credit card for bad credit, follow these steps to increase your chances of approval:
- Check your credit score and report before applying
- Use pre-qualification tools to gauge your approval odds
- Be honest and accurate on your application
- Consider secured cards if you’re having trouble getting approved
- Avoid applying for multiple cards in a short period
Sign in
Or sign in with email
The username or password is incorrect.
Authentication Code:
Get the PenFed Pathfinder Rewards Visa Signature Card
Want a rewards card with a 0% APR?
Get the Penfed PathFinder Rewards Visa Signature® Card today.
See if you qualify
- 50,000 bonus points when you spend $3,000 in the first 90 days
- 4 x points on all travel categories for PenFed Honors Advantage Members
- Annual Fee: $95
- 0% promotional rate for 12 months on balance transfers
-
Privacy Overview
-
Essential Cookies
-
Cookie Policy
This website uses cookies among other user tracking and analytics tools. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Cookies may also be used for other marketing and advertising purposes, or for other important business analytics and operations.
To use our website you need to agree to our Terms and Conditions and Privacy Policy. To find more about the legal terms that govern your use of our website, please read our Terms and Conditions here.To find more about your privacy when using our website, and to see a more detailed list for the purpose of our cookies, how we use them and how you may disable them, please read our Privacy Policy here.