Credit Cards for Bad Credit: Best Options for 2022

What are the best credit cards for people with bad credit?

We’ve selected the top credit cards for people with bad credit scores. These cards are ideal for anyone looking to make a change in their financial journey. Whether you’re looking to establish credit for the first time or repair a low credit score, your application for the following credit cards will be approved even if you have bad credit.

Best Credit Cards for Bad Credit

Overall Best Credit Card for Bad Credit

Best for No Deposit

Best for No Hard Inquiry

Best for Low APR (Low Interest)

Best for Establishing Credit

Best for No Credit Check

Best Unsecured Credit Card for Bad Credit

Can I get a credit card with bad credit?

Yes, you can get a credit card with bad credit. However, a person with a poor credit history is often seen as a high-risk lending prospect, so your credit card options will be more restricted than someone with a good credit score.

Bad credit typically limits you to cards with higher-than-average interest rates and few (or no) rewards. You’re also more likely to get a secured credit card than an unsecured card if your credit is bad. A secured card requires you to put down a security deposit when you apply. This deposit becomes your credit limit—the amount of money you’re allowed to charge to your credit card each month—and your lender will keep it if you ever default on your credit card debt.

Is a secured credit card my only option with bad credit?

No, a secured credit card isn’t your only option if you have bad credit, but you’re more likely to be approved for a secured credit card over other types of cards. Secured credit cards require an upfront deposit as collateral in case you stop paying your monthly bill. The deposit is also your line of credit, so you can’t ever charge more to your credit card than the amount you put down. This helps both you and the issuer by reducing your risk of overspending.

Sometimes, lenders will give you the option of upgrading or “graduating” your secured card to an unsecured one after you’ve used it for a while and shown that you’re a reliable borrower. 1 You can look for this option if you plan on using your card even after your credit improves.

How to get a credit card with bad credit

To get a new credit card if you have bad credit, follow these three steps:

Step 1: Determine your credit score

Before you start applying for a credit card, you’ll first want to know exactly what kind of credit score you’re working with, as well as what your credit score means.

Each year, you can get your free credit score from each of three major credit bureaus by getting your credit reports from AnnualCreditReport.com. Check out the Federal Trade Commission’s webpage on free credit reports for more information.

Note that most credit card issuers are going to run your credit during the application process. If they conduct a hard inquiry (which they probably will), it could lower your score by up to 5 to 10 points, leaving you with a slightly worse score than you started with. 2 3 This means you should be careful not to apply for new credit too frequently.

Step 2: Select your card

Your next step is to decide on a card that’s right for you.

Figure out exactly what goals you want to accomplish with your new card:

• Are you trying to build credit by using your first credit card?
• Are you trying to improve your credit score by making on-time monthly payments?
• Do you want to earn cash back when you buy certain things, like gas or food?
• Do you see yourself using this card for a long time and want to avoid high annual fees?

Whatever the case may be, it’s important to understand what to look for in a credit card for bad credit before applying, so you land on the right choice for your circumstances.

Step 3: Put in your application

Once you’ve selected the best credit card for you, it’s time to apply. Many of the cards on this list have simple online applications. You can easily access each card’s application portal directly from this page. Once you’re there, you’ll just need to enter a few pieces of information and let the credit card issuer handle the rest.

You’ll often receive an approval response instantly, but you may have to wait a few days if the issuer decides to review your credit manually. After you’ve been approved, you can expect your new credit card to arrive in the mail within two weeks.

What to look for in a credit card for bad credit

When looking for a credit card with bad credit, you need to be aware of a few key details—in particular, fees, interest rates, and minimum deposits.

• Fees: Be on the lookout for credit cards with cheap annual fees. High annual fees can be an added financial burden while you’re building your credit. Since improving your credit score won’t happen overnight, you’ll want to keep your new revolving account open for as long as possible, so keep the yearly cost of having your credit card to a minimum.
• Interest: Interest on credit cards can seem complicated at first. Credit card interest rates are frequently calculated as an annual percentage rate (APR), which also takes into account any added fees your lender charges you. Essentially, the higher the APR, the more you’ll end up paying for your card. With bad credit, it can be hard to find a credit card with a reasonable APR, so your best option is to pay your balance in full each and every month.
• Deposit: Most credit cards for people with bad credit are going to be secured rather than unsecured. As mentioned, a secured credit card requires you to put down a minimum security deposit to protect against default, like a deposit on an apartment rental. If you stop paying your credit card bill, your issuer will close the account and use your deposit to cover the loss. If you pay your credit card bill each month, then your deposit acts as your credit limit. This means that you can only ever charge purchases to your secured credit card up to the amount of your deposit. Consider the types of purchases you’ll be making with your credit card, and select a card with a minimum deposit that will match that budget.

When shopping around, you also want to avoid most credit cards with attractive sign-on bonuses or “too-good-to-be-true” rewards offers. When you have bad credit, your main purpose for getting a credit card should be to improve your overall credit score—not to earn airline miles.

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