Having bad credit can feel incredibly limiting, but there
are many credit cards for bad credit that can help you rebuild your credit
moving forward. Many of these cards offer low variable APRs, no or low annual
fees and other credit-building tools. These cards, combined with smart spending
habits, can open up new possibilities and grant you the financial freedom to
meet your goals.
Note: There’s no one
“best” card for everyone. All cards have their perks and quirks. So, you simply
need to choose the card that’s “best” for your needs and spending habits. To
help you figure out which one is the right card for you, here are a few of our
favorite credit cards for bad credit.
Best Credit Cards for Bad Credit 2020
Here are our picks for the best credit cards for bad credit:
First Progress Platinum Prestige Mastercard Secured Credit Card: A low APR balances out this card’s $49 annual fee.
OpenSky Secured Visa: There’s no credit check necessary to access the low rates of this card built to help you rebuild your credit.
First Progress Platinum Prestige Mastercard® Secured Credit Card
- Earn 1% Cash Back Rewards with First Progress Prestige!
- Apply now and fund your security deposit over 90 days with the option to make partial payments.
- You Can’t Rebuild credit with a Debit Card. Try First Progress Today! ¹
- Build your credit history across 3 major credit reporting agencies: Equifax, Experian and TransUnion.¹
- All credit types welcome to apply!
- ¹Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
Benefits: The First Progress Platinum Prestige Mastercard also offers a super-low 14.49% Variable APR for Purchases. The card is secured by a fully refundable deposit of $200 to $2,000.
Disadvantages: The main disadvantage to this card is its $49 annual fee. Unfortunately, the card is not yet available nationwide, either. If you live in New York, Iowa, Arkansas or Wisconsin, you’ll need to find another credit card for now.
OpenSky® Secured Visa® Credit Card
- New feature! Earn up to 10% cash back on purchases made with your OpenSky Secured Visa Credit Card at 40,000+ retailers. Visit OpenSky Rewards in the OpenSky app for participating retailers. See Rewards Terms and Conditions for more information.
- No credit check to apply. Zero credit risk to apply!
- Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months
- Get free monthly access to your FICO score in our mobile application
- Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and TransUnion
- Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
- Fund your card with a low $200 refundable security deposit to get a $200 credit line
- Apply in less than 5 minutes with our mobile first application
- Choose the due date that fits your schedule with flexible payment dates
- Fund your security deposit over 60 days with the option to make partial payments. Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
Benefits: If you’re trying to rebuild your credit, the OpenSky Secured Visa is a great choice. You determine your credit line—submit a fully refundable security deposit between $200 and $3,000—and increase your credit line up to $5,000. There’s no credit check necessary, so you don’t have to worry about another dip to your credit score.
Disadvantages: There is a $35 annual fee, and the ongoing APR is a little high—it’s currently 24.89% (variable) .
How
to Choose the Best Credit Card for Bad Credit
Choosing a credit
card for bad credit depends on your financial circumstances. One of
the most important reasons to get a card for poor credit is to rebuild your
credit, so you’ll want to choose a card that can help you do that.
Pay attention to the fees and APR associated with any card you’re
considering. While a security deposit for a secured card may seem like a steep
up-front expense, it might be worth it if you can avoid higher fees later and improve
your credit health overall.
Choose a card that rewards your spending habits and provides incentives for the types of purchases you tend to make. Before you apply, you should know your credit score so you can have a better idea of what cards are right for you. You can check your credit report for free with Credit.com.
Editorial disclosure: Reviews are as determined solely by Credit.com staff. Opinions expressed here are solely those of the reviewers and aren’t reviewed or approved by any advertiser. Information presented is accurate as of the date of the review, including information on card rates, rewards and fees. Check the issuer’s website for the most current information on each card listed.
Note: It’s important to remember that
interest rates, fees, and terms for credit cards, loans, and other financial
products frequently change. As a result, rates, fees, and terms for credit
cards, loans, and other financial products cited in these articles may have
changed since the date of publication. Please be sure to verify current rates,
fees, and terms with credit card issuers, banks, or other financial
institutions directly.
