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5 Best Credit Cards bad credit score holders can have (September 2022)

Best Credit cards bad credit


If you are one with bad or poor credit score and seeking a credit card, we have prepared a list of best credit cards bad credit score holders can have. So, first it is better to find out options available for people with bad credit score. Basically, there are two types of credit cards available for you –

 

A Secured Card where you need to put security deposit equal to the line of credit you are seeking.

 

Another is, Unsecured card where no security deposit is required and these are similar to regular cards available in market. However, annual fees and other fees like APR can be sky-high for these unsecured cards for people with bad credit score.

 

Whatever you choose, always aim to build your credit score by using one among the following shared list of best credit cards bad credit score holders can have, so you can qualify for better cards and loan rates in the future.

 

Sr No

Credit Card

Min Deposit Required

Annual Fees

 

Req Credit Score

 

1.

Discover it® Secured 

 

 $200

$0

 

 

350 or above

2.

Chime Credit Builder Visa® Credit Card

 

$0

$0

 

300 or above

 

3.

Capital One Platinum Secured Credit Card 

 

 

$49

 

$0

 

350 or above

4.

OpenSky® Secured Visa® Credit Card 

 

$200

 

 

$35

 

300 or above

5.

Capital One Quicksilver Secured Cash Rewards Credit Card 

$200

$0

 

 

300 or above

  

 

 

1. Discover it® Secured

Best Credit cards bad credit


This card not only comes with no annual fees but also provides a path to upgrade your card to regular card.

 

As this is a secured card, it requires deposit to provide you a credit line. Minimum deposit for this card is $200, that means $200 provides credit line of $200. If you want to enjoy higher line of credit, deposit the higher amount as security deposit.

 

After 7 months they automatically review whether you can be allowed under unsecured line of credit card along with refund of your security deposit.

 

Annual Fee- $0

 

Initial Bonus Offer- Unlimited Cashback Match where Discover will automatically match all the cash back earned at the end of your first year.

There is no limit on spending or rewards. Just a dollar-for-dollar match to provide you double bonus.

 

Security Deposit- This amount determines your credit limit. The range of security deposit for this card is between $200 to $2500.

 

Regular APR – 10.99% intro APR on Balance Transfers for 6 months. After offer period, ongoing APR of 25.24% Variable APR.

 

Other Benefits-

·       2% cash back at gas stations and restaurants for combined purchase during each quarter up to $1,000. All other purchases earn 1%.

 

·       Your card payments reported to three major credit bureaus (TransUnion, Equifax and Experian), which helps you build credit.

 

·       No late fee on the first late payment.

 

·       No foreign transaction fees

 

Pros

·       Generous bonus for new cardmembers

·       Automatically converts to an unsecured card

·       Helps to build crdit score

 

Cons

·       For security deposit to credit card, you should have a bank account.

·       Higher APR than some other secured cards

·       Comparatively low maximum credit limit of $2500.

 

 

2. Chime Credit Builder Visa® Credit Card

People who are looking for a secured card but without any restriction on minimum deposit then, this card can be your bet. As Chime Credit Builder card is a no annual fee, no minimum deposit restriction and a no interest fee card.

 

This is kind of preloaded debit card, money you deposit through chime account is your advance payment for that line of credit.

 

Annual Fee- $0

 

Initial Bonus – None

 

Regular APR – N/A

 

Other Benefits-

·       No credit check required.

·       Unlike other secured credit cards, no pre-selected credit limits, you can enjoy adjustable limit as per your requirement.

·       No Foreign transaction fees.

 

Pros

·        No interest charges because it allows you to spend only what you have in your Credit Builder secured account.

·       Your credit utilization is not reported to credit bureaus so only your on-time payment plays important role as your credit builder.

 

Cons

·       Requires a spending bank account with Chime.

·       No rewards and no bonus offer.

 

 

3. Capital One Platinum Secured Credit Card

Best Credit cards bad credit


Like other secured cards, Capital One Platinum Secured Credit Card also requires security deposit but here, you can get line of credit more than your security deposit.

 

Your deposit may be $49, $99 or $200 for a starter credit line of $200. So, basically there are fair chances where your credit line is greater than your security deposit.

 

Within six months you can get access to a higher credit limit by making on time monthly payments without having to deposit more money.

 

Annual Fee- $0

 

Initial Bonus – N/A

 

Regular APR – 26.99% Variable APR

 

Other Benefits-

·       By making monthly payments on time, you could earn your security deposit as statement credit.

·       Put down $49 as refundable security deposit to get $200 initial credit line.

·       if you are not able to put your security deposit upfront, Capital One will let you pay it in installments of at least $20 within 35 days of approval.

·       No foreign transaction fees on purchase

 

Pros

·       Great cash-back rewards in range of 1x-3x at most of the categories including Gas stations, supermarkets, restaurants, hotels and travels.

·        welcome offer for new cardholders

 

Cons

·       Requires a bank account

·       No rewards.

·       High APR

 

 

4. OpenSky® Secured Visa® Credit Card


The OpenSky Secured Visa Credit Card allows you to build or rebuild your credit score on an annual fee of $35 with minimum security deposit of $200.

 

This card does not require a bank account making easy to get approved for this card who lack bank account or have poor credit score.

 

Annual Fee- $35

 

Initial Bonus – N/A

 

Regular APR – 18.89% Variable APR.

 

Other Benefits-

·       No credit check required to apply. 

·       After 6 months of timely monthly payment, get considered for credit line increase without additional security deposit.

·       Flexible due date, Choose due date as per your convenience.

 

Pros

·       No bank account required.

·       Your card payments reported to three major credit bureaus (TransUnion, Equifax and Experian), which helps you build credit.

 

Cons

·       Annual fee for a secured card.

·       Foreign transaction fee of 3%.

·       Can’t upgrade to an unsecured card in future

 

 

5. Capital One Quicksilver Secured Cash Rewards Credit Card


This card is a $0-annual-fee card which requires a refundable minimum-security deposit of $200 and lets you earns rewards along with credit score building.

 

Not all secured card provide you chance to earn rewards but Capital One Quicksilver Secured Cash Rewards Credit card offers 1.5% cashback on all purchases made.

 

Annual Fee- $0

 

Initial Bonus – N/A

 

Regular APR – 26.99% Variable APR

 

Other Benefits-

·       5% cash back on hotels and rental cars booking through Capital One travel

·       Unlimited 1.5% cash back on most purchases.

·       No foreign transaction fees

·       By making monthly payments on time, you could earn your security deposit as statement credit.

 

Pros

·       Generous Cash back rewards unlike other secured cards.

·       No foreign transaction fees.

·       No minimum redemption amount limit

 

Cons

·       High APR

·       No new cardholder bonus offer

 

 


FAQ – Best Credit cards bad credit

 

 

What Is a Bad Credit Score?

 

There are different set of ranges by different lenders based on their used credit scoring models. However, FICO score below 580 is considered as very poor and between 580 and 669 is considered fair on a scale of 300 to 850.

 

What type of credit card is usually given to someone with bad credit?

 

There are two options available for people with bad credit- Secured and unsecured credit card.

 

However, the right choice for people with bad credit is going to be a secured card. As Secured credit cards charge the minimum or no annual fees with more chances of get instant approval. Some card providers even do not check credit score to provide secured credit card.

 

But if you are in a need of small emergency loan, Unsecured cards are better as no security deposit is required but these tend to be on expensive side.

 

What are good credit cards to start off with when you have bad credit?

 

People with bad credit score should always start with cards which comes at no annual fees and regularly update your payment history to major credit bureaus.

 

Discover it secured credit card can be a suitable option to start with. There are good chances to get approval quickly and you can enjoy generous sign-up offer with rewards on everyday purchases.

 

What should I look for in a credit card for bad credit?

 

Here are some quick tips to choose the best credit card bad credit:

·       Aim for a card which seeks minimum out of pocket expenses. As there are limited options for people with bad credit, sky high annual fees and interest charges are common.

 

·       Always choose a card that reports to all the three major credit bureaus on regular period so your consistent payments will show up in your credit report and help you to build your score.

 

·       Some secured cards reward their customers timely payments habit by returning security deposit as card statement and upgrade your card as unsecured automatically.

 

·       As opening and closing new credit line can impact your credit score so it is better to choose cards which provide automatic upgradation to regular card after a while.

 



Bottom line


Getting a credit card if you have bad or poor credit is possible but you should always consider your financial goals and your income in consideration.

 

An unsecured card for people with bad credit can come with high annual fees and account opening fees which can eat away your credit if you would not be disciplined.

 

Try to get Secured cards to develop card managing habits and building your credit score then, eventually go for unsecured or regular cards to enjoy low APR and low interest rates on your future loans.

 

We have provided our top picks of best credit cards bad credit score people can get to enjoy rewards and rebuild their credit score. Always choose according to your needs and review your cards offering time to time to utilize it on max. 

 

 


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