10 Best Credit Cards for Bad Credit
10 Best Credit Cards for Bad Credit
Credit Cards for Bad Credit are specifically designed for individuals who have a poor credit score or limited credit history. These cards offer a chance to rebuild your credit score by allowing you to borrow and repay small amounts of money over time. The key difference between these cards and regular credit cards is that they may come with higher interest rates and fees due to the increased risk that issuers take on when offering credit to individuals with bad credit. These cards are either secured or unsecured and provide a manageable way to demonstrate responsible borrowing behavior.
The primary benefit of Credit Cards for Bad Credit is their ability to help rebuild your credit score. By using a card responsibly, making on-time payments, and keeping your credit utilization low, you can gradually improve your credit history. Many of these cards report to the three major credit bureaus (Equifax, Experian, and TransUnion), which allows you to track your credit score improvement. Additionally, some cards offer features such as rewards programs, cashback, or no annual fees, making them a good option for individuals looking to improve their credit while still benefiting from financial perks. Below is a list of the 10 Best Credit Cards for Bad Credit that can help you achieve your financial goals.
1.
Capital One QuicksilverOne Cash Rewards Credit Card
Capital One QuicksilverOne Cash Rewards Credit CardCheck HereCapital One QuicksilverOne Cash Rewards Credit Card - - Offers 1.5% cashback on every purchase, with no annual fee. Ideal for individuals with bad credit looking to earn rewards while rebuilding their credit.
2.
Discover it® Secured Credit Card
Cash Back Match: At the end of your first year, Discover will match all the cash back you’ve earned. This effectively doubles your rewards in the first year.
No Annual Fee: There’s no annual fee for this secured card, making it affordable for individuals with limited credit histories.
Building Credit: Your account activity is reported to the three major credit bureaus, helping you establish or improve your credit score.
No Foreign Transaction Fees: Ideal for international purchases or travel.
Refundable Deposit: Your security deposit is refundable if you close your account in good standing.
- Discover it® Secured Credit CardCheck Here
Discover it® Secured Credit Card - - A secured credit card that offers 2% cashback at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases. The cashback is matched at the end of your first year, and there's no annual fee.
Pros
Cash Back Rewards: Earn 2% cash back on gas and restaurant purchases, which is a significant benefit for a secured card.- Cash Back Match: The first-year cash back match can be a huge bonus for cardholders, potentially doubling the value of your rewards.
- No Annual Fee: There is no annual fee, which is uncommon for secured credit cards and makes this card very affordable.
- Credit Building: It’s a great option for individuals who are looking to improve their credit score over time.
- No Foreign Transaction Fees: This is a major advantage for individuals who travel internationally.
- Refundable Deposit: Your security deposit is refundable, and can be used to help increase your credit limit after several months of good behavior.
Cons
Requires a Deposit: A minimum deposit of $200 is required to open the card, which may not be ideal for everyone.- Limited Rewards on Other Purchases: Outside of gas and restaurant spending, you only earn 1% cash back, which is standard for most credit cards but less rewarding than some non-secured options.
- Low Credit Limit: Your credit limit is determined by your deposit, and may not be sufficient for larger purchases.
Key Features
Cash Back Match at the end of your first year
No annual fee
No foreign transaction fees
Refundable deposit (starting at $200)
Reports to all 3 major credit bureaus
Why Is Recommended
3.
Credit One Bank® Unsecured Visa® for Rebuilding Credit
- Credit One Bank® Unsecured Visa® for Rebuilding CreditCheck Here
Credit One Bank® Unsecured Visa® for Rebuilding Credit - - An unsecured card with no annual fee and 1% cashback on eligible purchases. Great for people looking to rebuild credit with simple terms and cashback rewards.
4.
Indigo® Platinum Mastercard®
- Indigo® Platinum Mastercard®Check Here
Indigo® Platinum Mastercard® - - This unsecured card offers no annual fee for the first year, with an easy approval process for people with poor credit. It also provides a chance to rebuild credit with manageable terms .
5.
Petal® 1 "No Annual Fee" Visa® Credit Card
Rewards: Earn cashback for using the card responsibly.
Simple Rewards: Cash back on purchases without complicated categories.
Credit Building: Reports to all 3 major credit bureaus to help boost credit scores.
- Petal® 1 "No Annual Fee" Visa® Credit CardCheck Here
Petal® 1 "No Annual Fee" Visa® Credit Card - - A no-annual-fee, unsecured card that doesn't require a credit history to apply. It helps people with limited or no credit history build their credit score.
Pros
- Great for individuals new to credit.
- Transparent, no hidden fees.
- Cashback rewards with the potential for growth.
Cons
- High APR for balance carryovers.
- Limited rewards compared to other cards.
Key Features
Variable APR: 19.99% to 29.74%.
Credit limits: Starts at $300 and can increase based on usage.
Cashback rewards: 1% on eligible purchases, up to 1.5% with on-time payments.
No security deposit required.
No fees for foreign transactions or late payments.
Why Is Recommended
6.
Milestone® Gold Mastercard®
- Milestone® Gold Mastercard®Check Here
Milestone® Gold Mastercard® - - An unsecured credit card designed for people with less-than-perfect credit. Offers an easy approval process and no annual fee for the first year, making it a solid option for rebuilding credit.
7.
Self® Credit Builder Account Secured Visa® Credit Card
- Self® Credit Builder Account Secured Visa® Credit CardCheck Here
Self® Credit Builder Account Secured Visa® Credit Card - - A secured card linked to a Credit Builder Account that helps users build both credit and savings. There's an annual fee, but it offers a unique combination of credit-building and saving.
8.
BBVA ClearPoints® Credit Card
- BBVA ClearPoints® Credit CardCheck Here
BBVA ClearPoints® Credit Card - - A no annual fee credit card offering a low APR and 1.5% cashback on purchases, ideal for individuals looking to build credit while earning rewards.
Conclusion
Credit Cards for Bad Credit are a great tool for rebuilding your credit, especially when they come with no annual fee or other valuable features like cashback or rewards. Cards like the Capital One® QuicksilverOne® and Discover it® Secured Credit Card offer both the opportunity to improve your credit and earn rewards in the process. For individuals with limited or no credit history, options like the Petal® 1 Visa® and OpenSky® Secured Visa® are excellent choices to consider. Whichever card you choose, responsible use—making on-time payments and keeping credit utilization low—will help you build a stronger financial future. Start rebuilding your credit today with one of the best credit cards for bad credit from the list above!