7 Best Credit Cards for Bad Credit in September, 2022

When you have a bad credit score or a damaged credit history, qualifying for a credit card can be difficult. Even worse, most of the cards available to people with bad credit charge high fees and interest rates, and don’t offer many rewards or benefits.

Luckily, there are some hidden gems out there for borrowers with bad credit, and we’ve found the best of the best. Learn about how to get a credit card when you have poor credit, and browse our top 7 picks for the best credit cards for bad credit.

7 best credit cards for bad credit

Here are the 7 best credit cards you can get with bad credit.

Overall best credit card for bad credit

Best secured credit card for bad credit

Best unsecured credit card for bad credit

Best credit card for bad credit with no credit check

Best credit card for bad credit with no fees

Best credit card for bad credit with a high credit limit

Best rewards credit card for bad credit

What is bad credit?

Bad credit is when you have a low credit score or negative marks on your credit history, like bankruptcies, defaulted loans, or foreclosures. A bad credit score is a FICO score under 580 or a VantageScore under 601.

Can I get a credit card with bad credit?

Yes, you can get a credit card with bad credit. Given how many credit cards are available today, even borrowers with no credit history or very bad credit marks can qualify for lines of credit.

However, a person with bad credit is more likely to be seen as a high-risk borrower, so your credit card options will be more limited than someone with a good credit score. Credit cards for bad credit often have worse borrowing terms than credit cards for good credit, and boast fewer perks. Negative features of credit cards for bad credit include:

• High APR
• Annual fees
• Security deposits
• Limited or no rewards
• Low credit limits
  

Do I have to get a secured credit card if I have bad credit?

No, bad credit holders can get both secured and unsecured credit cards. Secured cards are usually easier to get, as the security deposit acts as collateral against risky borrowers, so lenders are more willing to extend secured lines of credit. Additionally, some secured credit cards won’t perform credit checks, so your credit history won’t be taken into account when you apply.

However, there are also many unsecured credit cards available to people with poor credit. Be aware that unsecured credit cards for bad credit tend to have higher fees and fewer perks. For example, you’re more likely to find a secured credit card for bad credit that offers rewards.

How do I get a credit card with bad credit?

To get a credit card when you have bad credit, follow these steps:

Step 1: Determine your credit score

Before you start applying for credit cards, know where your credit stands by looking up your score and understanding what your credit score means.

You can find your credit score by:

• Checking with your bank or other financial institution to find out whether they offer free credit scores.
• Purchasing your credit score directly from FICO or VantageScore.
• Using a paid or free credit scoring service.
• Talking to a non-profit credit counselor.
• Going to AnnualCreditReport.com to download a free credit report. This report will not include any of your credit scores, but will help you understand where your credit stands.

Once you know your credit status, you can narrow your credit card options to the ones you’re most likely to qualify for. As applying for credit cards results in hard inquiries (which lower your credit score), you want to be careful not to apply for many cards at once, especially if you’re not likely to be approved.

Step 2: Choose a card

Research potential credit cards and choose the right one for you. Consider the list of credit cards for bad credit above, or look for other borrowing options. For example, consider credit cards for building credit if you’re a new borrower and just trying to jumpstart your credit history.

When choosing your credit card, always read through the card’s rates and fees page before applying for it. Rates and fees are listed in a card’s Schumer box, which can be found on the credit card website or by searching the Consumer Finance Credit Card Agreement Database.

Step 3: Apply for a credit card

Once you’ve selected the best credit card for you, it’s time to apply. Many of the cards on this list have easy online applications, most of which offer instant approval.

You can easily access each card’s application portal directly from this page. Once you’re there, you’ll just need to provide a few pieces of information and let the credit card issuer handle the rest. You’ll likely be asked to provide your:

• Legal name
• Email address
• Phone number
• Physical address (P.O. boxes are usually not allowed)
• Social Security number or ITIN
• Employment status
• Annual income
• Recurring expenses (e.g., rent, alimony, child support)

You’ll often receive an approval response instantly, but you may have to wait a few days if the issuer needs to verify your information. After you’ve been approved, you can expect your new credit card to arrive in the mail within two weeks. Once you receive your new card, you’ll need to call the number on the back to activate your credit card before you can use it.

How do I choose a credit card for bad credit?

When you’re researching credit cards for bad credit, consider the following card features:

• APR: Credit card APR is the yearly interest rate on a credit card. APR tends to be higher on credit cards for poor credit, meaning you’ll be charged more interest on any balances you carry from month to month. Look for an APR under 25%, as anything over that is high even for bad-credit credit cards.
• Fees: Understand what fees a credit card charges and determine if you can afford the cost. For example, many credit cards for bad credit charge annual fees. Look for one under $50/year, unless the card offers enough perks to outweigh a higher annual fee. Some cards even charge monthly fees. In our research, we’ve found few cards with monthly fees that are worth the cost, and we recommend avoiding such cards.
• Security deposits: If you’re looking at secured credit cards, understand how the security deposit works. Check the minimum amount you can put down, the maximum amount you can pay if you want a higher credit limit, and whether the security deposit is refundable.
• Credit limits: A credit card’s credit limit is the maximum amount you can charge to that card. Most credit cards for bad credit have low credit limits. Find a card that can afford you the monthly expenses you plan to make on credit without needing to max out your card.
• Capabilities: Not all credit cards have the same range of functions. Depending on what your needs are, check whether a credit card offers the ability to make balance transfers, withdraw money through cash advances, or add authorized users. If you’re considering a secured credit card, you should also check if the card can be graduated to an unsecured credit card.