Best Credit Cards for Bad Credit in 2024

Eric Bank

By: Eric Bank

Eric Bank
Eric Bank

Eric Bank has been covering business and financial topics since 1985, specializing in taking complex subject matters and explaining them in simple terms for consumer audiences. Eric's writing regularly appears on Credible.com, eHow, WiseBread, The Nest, Get.com, Zacks, Chron, and dozens of other outlets. A former software engineer, Eric holds an M.B.A. from New York University and an M.S. in finance from DePaul University.

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Editor: Lillian Guevara-Castro

Lillian Guevara-Castro
Lillian Guevara-Castro

Lillian brings more than 30 years of editing and journalism experience, having written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times. A former business writer and business desk editor, Lillian ensures all BadCredit.org content equips readers with financial literacy.

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Reviewer: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley has managed content initiatives for BadCredit since 2015, having worked closely with the world’s largest banks and financial institutions, as well as press and news outlets, to publish comprehensive content. Her credit card commentary is featured on national media outlets, including CNBC, MarketWatch, Investopedia, Yahoo Finance, and Reader's Digest.

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Bad credit credit cards are designed to help those with a poor or limited credit history improve their credit. To maximize the benefits of these credit cards and build towards a healthier credit profile, it's important to always make on-time payments, keep balances low, and avoid overspending. Here are 2024's best credit cards for bad credit, according to our experts:

Disclosure: When you apply through links on our site, we often earn referral fees from partners. For more info, see our ad disclosure and review policy.

  • No credit check to apply
  • Adjustable credit limit based on what you transfer from your Chime Checking Account to the secured account
  • No interest* or annual fees
  • Chime Checking Account and qualifying direct deposit of $200 or more required to apply. See official application, terms, and details link below.
  • The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
  • *Out-of-network ATM withdrawal fees may apply. See here for details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes N/A Yes 9.5
  • $400 credit limit doubles to $800! (Simply make your first 6 monthly minimum payments on time)
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Initial Credit Limit of $400.00 (Subject to available credit)
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere Mastercard® is accepted
  • Access to your Vantage 3.0 score from Experian (When you sign up for e-statements)
  • Checking Account Required
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 minutes 29.99% Yes 7.5/10
  • Earn 3% Cash Back Rewards* on Gas, Groceries and Utility Bill Payments
  • Earn 1% Cash Back Rewards* on all other eligible purchases
  • Up to $1,000 credit limit subject to credit approval
  • Prequalify** without affecting your credit score
  • No security deposit
  • Free access to your VantageScore 4.0 score from TransUnion®†
    *See Program Terms for important information about the cash back rewards program.
    ** Prequalify means that you authorize us to make a soft inquiry (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
    † Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
7 minutes 29.99% or 36% Fixed Yes 8.0/10
  • Earn 1% cash back rewards^^ on payments made to your Revvi Credit Card
  • Perfect credit not required
  • $300 credit limit (subject to available credit)
  • Checking account required
  • Opportunity to request credit limit increase after twelve months, fee applies
  • *See Rates, Fees, Costs & Limitations for complete offer details
  • ^^See Revvi Rewards Programs Terms & Conditions for details
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 minutes 35.99%* Yes 8.0/10
  • All credit types accepted.
  • Arro's soft credit pull does not impact your credit score.
  • Through in-app personal finance activities, members receive real time credit limit increases and other rewards.
  • Opportunities to decrease your interest rate.
  • Use your Arro Card anywhere Mastercard is accepted.
  • Application takes as little as 5 minutes.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes 16% Variable Yes 8.0/10
  • Earn 3% Cash Back Rewards* on Gas, Groceries and Utility Bill Payments
  • Earn 1% Cash Back Rewards* on all other eligible purchases
  • Good anywhere Mastercard® is accepted
  • $0 fraud liability**
  • Free access to your VantageScore 4.0 credit score from TransUnion®†
    *See Program Terms for important information about the cash back rewards program.
    **Fraud liability subject to Mastercard® rules.
    † Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
7 minutes 29.99% or 36% Fixed Yes 8.0/10
  • No credit check to apply. Zero credit risk to apply!
  • Looking to build or rebuild your credit? 2/3 of cardholders receive a 48+ point improvement after making 3 on-time payments
  • Extend your $200 credit line by getting considered for an unsecured credit line increase after 6 months, no additional deposit required!
  • 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
  • Join over 1.2 million cardholders who’ve used OpenSky to build their credit
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes 25.64% (variable) Yes 7.0/10
  • Move money from your PayPal account to fund your prepaid card account.
  • Earn cash back and personalized offers, just for using your card.
  • With Direct Deposit, you can get paid faster than a paper check.
  • Card issued by The Bancorp Bank, Member FDIC. Card may be used everywhere Debit Mastercard is accepted.
  • Click PayPal Prepaid Mastercard® for additional features & program details, and to request a Card.
★★★★★

4.6

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes N/A (Prepaid) No 9.5/10
  • Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
  • See if you’re Pre-Qualified with no impact to your credit score
  • All credit types welcome to apply
  • Access to your Vantage 3.0 score from Experian (When you sign up for e-statements)
  • Initial Credit Limit of $300 – $1,000 (subject to available credit)
  • Monthly reporting to the three major credit bureaus
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere Mastercard® is accepted
  • Checking Account Required
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 minutes 29.99% APR (Variable) Yes 8.0/10
  • Earn 1% Cash Back Rewards on payments made to your First Latitude Secured credit card account.
  • Past credit issues shouldn’t prevent you from getting a credit card with great benefits & rewards!
  • Choose your own fully-refundable credit line - $200 to $2000 – based on your security deposit.
  • Build or rebuild your credit!¹
  • Accepted wherever Mastercard® is accepted
  • Reports to all 3 credit bureaus
  • No minimum credit score required for approval!
  • 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.
  • *See Important Disclosures for complete offer details
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes 19.24% (V) Yes 8.0/10
  • With Direct Deposit, you can get paid faster than a paper check.
  • No late fees or interest charges because this is not a credit card.
  • Use the Netspend Mobile App to manage your Card Account on the go and enroll to get text messages or email alerts (Message & data rates may apply).
  • Card use is subject to activation and ID verification. Terms and Costs apply.
  • Card issued by Pathward N.A., Member FDIC. Card may be used everywhere Visa debit card is accepted.
  • See additional NetSpend® Prepaid Visa® details.
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes N/A (Prepaid) No 7.5/10
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes 35.99%* Yes 8.5/10
  • Up to $1,000 credit limit doubles up to $2,000! (Simply make your first 6 monthly minimum payments on time)
  • All credit types welcome to apply!
  • Monthly Credit Score – Sign up for electronic statements, and get your Vantage 3.0 Score Credit Score From Experian
  • Initial Credit Limit of $300 – $1,000 (subject to available credit)
  • Monthly reporting to the three major credit bureaus
  • See if you’re Pre-Qualified without impacting your credit score
  • Fast and easy application process; results in seconds
  • Online account access 24/7
  • Checking Account Required
★★★★★

4.5

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 minutes 29.99% APR (Variable) Yes 8.5/10
  • Greater access to credit than before - $700 credit limit
  • Get a Mastercard accepted online, in store and in app
  • Account history is reported to the three major credit bureaus in the U.S.
  • $0 liability* for unauthorized use
  • Access your account online or from your mobile device 24/7
  • *Fraud protection provided by Mastercard Zero Liability Protection. If approved, you'll receive the Mastercard Guide to Benefits that details the complete terms with your card.
★★★★

4.4

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
8 minutes See terms Yes 9.0/10
  • Better than Prepaid...Go with a Secured Card! Load One Time - Keep On Using
  • Absolutely No Credit Check or Minimum Credit Score Required
  • Automatic Reporting to All Three National Credit Bureaus
  • 9.99% Low Fixed APR - Your Rate Won’t Go Up Even if You Are Late
  • Activate Today with a $200 Minimum Deposit - Maximum $1,000.
  • Increase Your Credit Limit up to $5,000 by Adding Additional Deposits Anytime
★★★★

4.4

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 minutes 9.99% Fixed Yes 7.5/10
  • PREMIER Bankcard credit cards are for building credit.
  • Start building credit by keeping your balance low and paying all your bills on time each month.
  • When you need assistance our award-winning US-based Customer Service agents are there to help.
  • Credit Limit Increase Eligible after 12 months of consistent responsible account management.
  • We report monthly to the Consumer Reporting Agencies to help you build your credit.
★★★★

4.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
4 minutes See Provider Website Yes 9.0/10
  • You don’t need good credit to apply.
  • We help people with bad credit, every day.
  • Just complete the short application and receive a response in 60 seconds.
  • You can build or rebuild your credit: apply for a PREMIER Bankcard credit card, keep your balance low, and pay all your monthly bills on time.
  • Don’t let a low FICO score stop you from applying – we approve applications others may not.
  • FICO scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any PREMIER Bankcard® product.
★★★★

4.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
4 minutes See Provider Website Yes 9.0/10
  • Choose your own credit line based on how much money you want to put down as a security deposit.
  • Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
  • After 9 months, we review your account for a credit line increase. No additional deposit required!
  • Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
  • Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
  • Get your FICO® Credit Score for free each month.
  • Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with available Auto Pay and account alerts.
  • Card issued by Merrick Bank, Member FDIC.
★★★★

4.0

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 minutes 22.70% Variable Yes 7.5/10
★★★★

3.9

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 minutes 35.99%* Yes 8.0/10

Other Popular Offers

for People With Bad Credit

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  • Network of dealer partners has closed $1 billion in bad credit auto loans
  • Specializes in bad credit, no credit, bankruptcy and repossession
  • In business since 1999
  • Easy, 30-second pre-qualification form
  • Bad credit applicants must have $1500/month income to qualify
  • See application, terms, and details.

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★★★★★

4.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
3.99% - 29.99% 1999 3 minutes 9.5/10

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Advertiser Disclosure

BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.

Our Editorial Review Policy

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.

Review Breakdown: Credit Cards For Bad Credit

Best Credit Cards Bad Credit

If you have poor or damaged credit, it certainly doesn't mean credit card issuers don't want your business. In fact, many issuers create cards specifically for those with a bad credit history. Though these cards' interest rates and fees tend to be higher than others, they offer easier approval standards and are geared toward helping customers build credit through responsible use. Make your payments on time each month, and keep your balance low relative to the credit limit, for positive marks on your credit report. Below is a summary of these cards and their terms.

Here are 2024's best credit cards for bad credit:

Rank Credit Card Interest Rate Reports Monthly Our Rating
1 Secured Chime Credit Builder Visa® Credit Card N/A Yes ★★★★★4.8
2 FIT™ Platinum Mastercard® 29.99% Yes ★★★★★4.8
3 Aspire® Cash Back Reward Card 29.99% or 36% Fixed Yes ★★★★★4.7
4 Revvi Card 35.99%* Yes ★★★★★4.7
5 Arro Card 16% Variable Yes ★★★★★4.7
6 Fortiva® Mastercard® Credit Card 29.99% or 36% Fixed Yes ★★★★★4.7
7 OpenSky® Secured Visa® Credit Card 25.64% (variable) Yes ★★★★★4.7
8 PayPal Prepaid Mastercard® N/A (Prepaid) No ★★★★★4.6
9 Reflex® Platinum Mastercard® 29.99% APR (Variable) Yes ★★★★★4.6
10 First Latitude Select Mastercard® Secured Credit Card 19.24% (V) Yes ★★★★★4.5
11 NetSpend® Visa® Prepaid Card N/A (Prepaid) No ★★★★★4.5
12 Total Visa® Card 35.99%* Yes ★★★★★4.5
13 Surge® Platinum Mastercard® 29.99% APR (Variable) Yes ★★★★★4.5
14 Milestone® Mastercard® See terms Yes ★★★★★4.5
15 Applied Bank® Secured Visa® Gold Preferred® Credit Card 9.99% Fixed Yes ★★★★4.4
16 Destiny Mastercard® See terms Yes ★★★★4.1
17 PREMIER Bankcard® Mastercard® Credit Card See Provider Website Yes ★★★★4.0
18 PREMIER Bankcard® Grey Credit Card See Provider Website Yes ★★★★4.0
19 Merrick Bank Secured Credit Card 22.70% Variable Yes ★★★★4.0
20 First Access Visa® Card 35.99%* Yes ★★★★3.9

15 FAQs About Credit Cards For Bad Credit

Eric Bank

Eric Bank, Finance Writer

Updated:

If you go by TV commercials alone, you may never know that credit cards for bad credit exist. The popular advertised cards with great rewards and perks are easy to get — if you have good credit. The good news is that your bad or thin credit history need not prevent you from obtaining a basic credit card.

Owning a credit card makes shopping more convenient and gives you the opportunity to improve your credit score through responsible use. To that end, this article answers your most urgent questions about credit cards for consumers with less than fair credit.

1. What Does it Mean to Have Bad Credit?

FICO scores range from 300 to 850. A credit score of below 580 is considered bad, according to the FICO scale. Approximately 16% of Americans have bad credit.

FICO Score Ranges

When you consider that 16% of consumers represents many millions of people with bad credit, you shouldn’t be surprised that credit cards are available for this sizable market.

Consumers who fall into this group have experienced financial problems, including late or missed payments, collections, account write-offs, bankruptcies, and other negative events. When you have bad credit, loans are expensive and hard to access, and credit cards available to you offer basic features and low credit limits.

Thankfully, you can rebuild your credit by adopting creditworthy behavior, including:

  • Making timely payments: You can’t improve your credit rating if you don’t pay your bills on time. Timely payments are recorded on your credit reports and should help your score rise within six to 12 months. If you repeatedly find it hard to pay your bills on time, you should consider one or more actions to remedy the situation, including improving your debt-to-income ratio, receiving debt counseling, consolidating your debt, undergoing debt settlement, or filing for bankruptcy.
  • Pay down existing credit card debt: Your credit utilization ratio (CUR), which is the sum of all your credit card balances divided by your total available credit, is an important factor in the calculation of your FICO credit score. CURs above 30% hurt your score, but you can improve your score by reducing your CUR below 20%.
  • Fix your credit reports: Erroneous and incomplete information on your credit reports can hurt your credit score. You have the right to dispute and correct mistakes, either by yourself or with the help of a credit repair company. Your score should improve within a couple of months when inaccurate negative information is removed from your credit reports.

Even though major negative items remain on your credit reports for up to 10 years, the impact they have on your credit score diminishes after the first two to three years.

2. Can I Get a Credit Card If I Have a Bad Credit Score?

As our rankings above indicate, some credit cards are designed specifically for consumers with bad credit. Consumers with bad credit have three types of cards available to them:

  • Unsecured cards: These are traditional credit cards. An unsecured card does not require you to deposit any cash collateral.
  • Secured cards: These cards require you to deposit cash to secure your credit limit. Secured cards are available to virtually everyone, and can serve as a first step when rebuilding your credit.
  • Prepaid cards: These are more like debit cards except that they are backed by cash deposits rather than your checking account. Prepaid debit cards look like regular debit cards and are not subject to penalties for late payments or over-limit spending.

You can get an unsecured credit card despite a low credit rating if you meet certain criteria. If you choose a secured card, you may be automatically considered for an unsecured card by making on-time payments for six or more months in a row. When you close a secured credit card account, the credit card company will refund your deposit (minus any outstanding balance and fees).

3. How Is a Card for Bad Credit Different from Any Other Card?

Unsecured credit cards for bad credit represent a risky proposition to issuers. A bad credit score indicates you’ve had financial problems in the past, giving issuers reason to worry you won’t pay your bills.

To reduce their risk, issuers of credit cards for bad credit implement certain unique features, including:

  • High fees: By charging you high fees, issuers receive cash flows that can compensate them for some of their losses if you default on your card. These can include setup, annual, and maintenance fees.
  • High APRs: Many of these cards have an interest rate in excess of 25%, sometimes as high as 35%. These high interest rates generate a cash cushion against default. However, you can argue that high APRs increase the chances of default, so this represents a bit of a paradox.
  • Low credit limit: By keeping your initial credit limit low (often to $200 to $300), the issuer limits the amount it may have to write off if you default on your card payments. Eventually, you may be able to qualify for a higher credit line if you pay your bills on time.
  • Scant rewards and benefits: These cards are usually bare-bones, lacking miles, points, or cash rewards on purchases. They usually do not offer new cardmember promotions, such as signup bonuses or a 0% introductory APR period. By omitting expensive perks, the issuer can better afford to accept high-risk cardholders.
  • No balance transfers: Many of these cards do not permit balance transfers, and virtually none offer a 0% introductory APR for a balance transfer.
  • Expensive cash advance: Cards that permit a cash advance charge a high interest rate as well as a fee for each transaction.
  • Expensive penalties: Expect to pay a penalty fee (often exceeding $30) each time your monthly payment is late or you spend more than your credit limit. You also may be assigned a high penalty APR for an indefinite period.
  • Modest perks: Some cards in this category allow you to choose the design imprinted on your credit card from a limited selection. Virtually all offer $0 fraud protection and monthly reporting to each major credit bureau.
  • Slow credit line increases: It may take over a year to earn a credit line increase. Some cards in this group may completely prohibit higher credit lines.

These cards are the most basic in the credit card universe. Generally, you’ll want to replace them with better cards when you boost your credit score above 600.

4. How Do I Apply for a Credit Card?

Nowadays, most issuers let you prequalify for a credit card before applying. Prequalification is useful because:

  • It lets you know immediately whether you are eligible for the card. Prequalification doesn’t guarantee your application will be approved, but failing to prequalify rules out approval.
  • You won’t incur a hard inquiry on your credit report. Hard inquiries can reduce your credit score by five to 10 points. The prequalification process usually involves a soft inquiry that has no impact on your score.

To prequalify for a card, compare the cards listed above and select the card that most closely matches your needs. Clicking on the link will transfer you to the credit card’s prequalification page, where you fill out an online request form with your basic identification, employment, and housing information. Submit the application form after completing it and expect an instantaneous approval decision.

Before applying, read and understand all the rate and term disclosures that the card company must provide. Should you choose to apply and be approved, you can expect to receive your new credit card in seven to 10 days.

If your card has a setup fee and/or annual fee, your credit limit will be initially reduced by the total fee amount. After you pay these fees, you’ll revert to a higher credit line.

5. What Is the Easiest Credit Card to Get with Bad Credit?

Secured credit cards and prepaid debit cards are easy to get, no matter how low your credit score. These cards are collateralized by cash and don’t involve the credit card company providing you any unsecured credit. Since there is virtually no risk, issuers can afford to offer these cards to anyone who can deposit cash.

Unsecured cards are more problematic when you have a low (or no) credit score, but even so, a couple of unsecured bad credit credit card types are relatively easy to obtain. If you attend post-secondary school on at least a half-time basis, you can apply for a student credit card. This type of card doesn’t depend on credit score and usually offers points or cash rewards and benefits.

Secured Versus Unsecured Credit Cards

A cobranded store credit card is also fairly easy to get, especially one that can only be used at the issuing store. For example, the Fingerhut Credit Account is widely considered to be among the most accessible credit accounts. Other easily obtained cards are the Amazon.com Store Card and the Target RedCard.

Prepaid cards, which resemble debit cards, are extremely easy to obtain because you don’t need a financial institution account to get them. We give high marks to the PayPal Prepaid Mastercard® and the NetSpend® Visa® Prepaid Card. Because these are not credit cards, there are no interest charges, no late fees, and no overdraft fees.

Several general-purpose unsecured credit cards are specifically designed for consumers with bad credit. These cards offer rapid prequalification that won’t impact your credit score. Our favorite among this group is the Surge Mastercard®, which welcomes applications from all credit types.

6. Which Credit Cards Give You Instant Approval?

Most secured credit cards give you instant approval. However, that approval is conditional upon receipt of the required cash deposit. Student credit cards also provide instant approval, but applicants must demonstrate eligibility (i.e., attendance at a post-secondary school).

Most unsecured credit cards offer instant prequalification. While not a final approval, prequalification is a pretty good indicator that your application will be approved. Prequalification is usually independent of credit score, but does involve several requirements:

  • You must be at least 18 years old.
  • You must have a Social Security number.
  • You must provide your permanent address.
  • You must provide your estimated gross monthly income.
  • You must disclose your monthly housing costs (rent or mortgage).

In the prequalification step, the issuer doesn’t do a hard pull of your credit report. Instead, it performs a soft pull and can usually provide an instant decision. Once you prequalify, you usually provide additional information that the issuer uses to make a final decision, a process that can occur in less than a minute.

Indeed, in today’s competitive credit card environment, anything other than an instant decision is unusual. In addition, many cards prequalify prospective cardholders without request. In this type of marketing, the issuer mails or emails an invitation to the prequalified prospect that can be used to quickly apply for the card, often accompanied by a special promotion.

7. Can I Get an Unsecured Card with a 500 Credit Score?

A 500 credit score is clearly not good, considering that the average FICO score is 711 on the 300 to 850 scoring system. Even though a 500 score creates some challenges, it does not necessarily disqualify you from getting an unsecured credit card.

But before you apply for one, we urge you to consider whether you’d be better served by a secured credit card. Relative to a secured credit card, an unsecured bad credit credit card will:

  • charge higher fees
  • have more types of fees
  • charge a higher APR
  • offer meager or no rewards
  • offer meager benefits
  • have a low credit limit

Nonetheless, we recognize that many consumers can’t shell out a $200 or $300 deposit for a secured card, which is why they apply for cards like the Surge Mastercard®, Indigo® Mastercard® Credit Card, or Total Visa® Card. All three are available to consumers with a 500 credit score and who have a checking account.

However, if you have a 500 credit score but can’t abide by the idea of using a financial institution, you are the perfect candidate for a prepaid card.

A prepaid card is like a debit card backed by a cash deposit rather than a checking account. You simply add cash to the card account and then use the card wherever debit cards are accepted.

Prepaid cards charge for their usage on either a monthly or per-use basis. You can’t overdraw these cards because you can only spend up to your balance. That means no interest charges and no late fees, although some cards charge for refilling your account.

Our top choice is the PayPal Prepaid Mastercard®, which lets you transfer money between the card account and your PayPal account. It accepts direct deposits, which means you can get paid up to two days faster than you would with a paper check. A nice feature of the card is that you receive cash back and personalized offers just for using it.

8. Which Credit Cards Build Credit Fast?

Your credit profile is reflected in the credit scores the three major credit bureaus (Experian, Equifax, and TransUnion) assign to you. The major ways you build your credit scores is by paying your bills on time and keeping your debt balances low. Naturally, your creditworthy behavior won’t improve your credit if a major credit bureau doesn’t know about it.

Credit Bureau Logos

Therefore, you want to choose credit cards that report your payments to all three of the credit bureaus. This is normal practice — most credit cards report activity to the three bureaus. On the other hand, prepaid and debit cards do not send information to the credit bureaus, so don’t expect them to help boost your credit.

Credit card companies send your activity information to credit bureaus monthly, and it usually takes several months for your creditworthy behavior to be reflected in a higher score. In other words, paying your bills on time and keeping debt levels low will take time to help your credit score.

Here are some suggestions for faster results:

  • Fix your credit reports: Negative information, such as delinquencies, collections, defaults, and bankruptcies hurt your credit score. If any negative information on your reports is incorrect, you can improve your score by removing it, either by yourself or with the help of a credit repair company. Credit scores rebound quickly when inaccurate negative information is scrubbed from your credit reports.
  • Become an authorized user: You become an authorized user when another person adds you to their credit card account. You get a copy of the card with your name on it, allowing you to make purchases. You aren’t legally obligated to make payments on the account (although you’ll likely ruin your relationship with the primary cardholder if you don’t pay your share). To become an authorized user, you don’t need to qualify for your own credit card, which means you can start rebuilding your credit before getting your own card. Therefore, becoming an authorized user can accelerate your credit recovery.
  • Get a secured credit card: Many secured cards let you open accounts with a large security deposit, up to $5,000 in some cases. That kind of credit limit is unlikely on unsecured cards for consumers with bad credit. A higher limit allows for more activity to be reported each month while helping to reduce your credit utilization ratio by increasing your total authorized credit. A lower CUR (below 30%) will help your credit score, so the new secured card is an immediate positive — as long as you don’t rack up a large balance on it.
  • Ask for a higher credit limit: This is another way to reduce your CUR. As such, it should help your credit score quickly, usually within a month or two. Be careful not to use any of the additional credit line, as that will once again raise your CUR. In general, you will benefit most if you can get your CUR below 20%.

Paying your bills on time accounts for 35% of your credit score, and maintaining a low debt level is responsible for another 30%. These two actions alone are more important than anything else you can do, so they deserve your primary attention as you work to increase your credit score.

9. Can I Get a Business Credit Card with Bad Credit?

Several credit cards are appropriate choices for business owners with bad credit, but they are generally less familiar than the big name cards you see advertised on TV. The banks that issue these cards are not the giant ones like Chase or Citibank, but rather more obscure banks that specialize in subprime debt products.

As with consumer cards, it’s much easier to get a business credit card if it is secured. We’ve come across a handful of secured bad-credit business cards that are worth your attention:

  • Wells Fargo Business Secured Credit Card: This card allows you to deposit up to $25,000 to support your credit line. It offers your choice of rewards: cash back or points. You can get up to 10 employee cards for free.
  • BBVA Compass Business Secured Credit Card: This tiered cash back card is available in only seven states. Your credit limit will equal 90% of your BBVA savings account, starting with a $500 credit line. It offers free employee cards and many online business services that will please your bookkeeper.
  • OpenSky® Secured Visa® Credit Card: While not specifically designed as a business credit card, it does have a high acceptance rate for business owners. No credit check is needed for approval, and you can secure a credit line from $200 to $3,000.
  • Credit One Bank® Platinum Visa® for Rebuilding Credit: Unlike the others on this list, this card from Credit One Bank is unsecured. We like it for business owners because it offers flat cash back rewards on mobile phone, internet, cable, and satellite TV services, as well as on gasoline purchases. Credit lines from $300 to $3,000 are available.

The secured cards on this list are a good way to start rebuilding your credit. You may be able to graduate to an unsecured card in six to 12 months by always paying your bills on time, staying within your credit limit, and keeping your unpaid balances low.

10. Can I Earn Credit Card Rewards with Bad Credit?

We’ll be frank — it’s rare to find a rewards card available to consumers with bad credit. We can recommend three:

  • Credit One Bank® Platinum Visa® for Rebuilding Credit: This card offers a flat cash back reward on eligible purchases for gas, groceries, mobile phone service, internet service, and cable and satellite TV services.
  • Bank of America® Cash Rewards Secured credit card: This is one of the best secured cards available, offering cash back rewards similar to those of a card for good credit applicants. While you can be approved with bad credit, you’ll need to make a security deposit to open an account.
  • Discover it® Secured: Another secured offering that requires a deposit for approval, this card offers cash back on purchases made at gas stations and restaurants on up to $1,000 in purchases each quarter.

Almost all other cards for consumers with bad credit offer no rewards and few benefits. Most offer $0 liability protection and some do not charge an annual fee, or if they do, they may waive the fee for the first year. Virtually all report your payments to all three credit bureaus so you can rebuild your credit score by paying your bills on time.

11. How Can I Get a Credit Card ASAP?

Even with bad credit, you can find many credit cards that offer same-day approval. In fact, this has become the service standard in the credit card industry for all credit types. While it may take a week to 10 days for your card to arrive in the mail, some issuers offer expedited handling and can get the card into your hands in three to five days.

If you really need your card ASAP, look for cards that offer virtual account numbers that you can use immediately for card-not-present (CNP) transactions. Virtual account numbers are different from the card’s regular account number. You get them from the card issuer after you are approved for the card, and you can use them right away for online, mail order, and phone purchases.

Virtual credit card account numbers are available from several issuers, including American Express, Capital One, and Citibank. In addition, you can use a cobranded store credit card, such as those from Target, Amazon, Walmart, and Apple, that offers a virtual account number.

In addition, you may be able to use a new credit card right away through a digital wallet. All four of the credit card networks (Visa, Mastercard, American Express, and Discover) offer Click to Pay digital wallets that provide numeric tokens that replace your regular account number when you check out at a participating store.

The Click to Pay Icon below indicates where you can use a compatible mobile wallet to make a purchase.

Click to Pay Icon

Because tokens are used, merchants and others can’t get hold of your real account number. The tokens can be set up for just a single-use, so they are of no further value once used. This is an important and effective security feature.

12. How Do I Get My First Credit Card with No Credit History?

It takes time to build your credit history, so where do you start? Credit cards are a natural portal into the world of credit due to their relative ubiquity and availability. As it turns out, it’s easier to get your first credit card than you may think. Here are some options:

  • Become an authorized user: As discussed earlier, a credit card owner can invite you to become an authorized user of the card. Your name will be added to the account and the credit bureaus will establish a credit file in your name. Card activity will be recorded in the owner’s and your credit files, allowing you to establish your credit history and eventually getting your own card.
  • Recruit a cosigner: A cosigner can help you get a loan or credit card by guaranteeing payments. In fact, several card issuers accept cosigners, letting you qualify for a card and begin building your credit history. Normally, you alone use the card, and the cosigner figures in only if you miss a payment.
  • Get a secured card: You don’t need a credit history to get a secured credit card. All you require is the cash security deposit to collateralize your credit line. By paying your bills on time every month, you may be able to upgrade to an unsecured card within a year.
  • Get a student credit card: Many students arrive at college with no credit history. Card issuers cater to this group with student credit cards that require no history, allowing you to build your credit. You must attend a post-secondary school on at least a half-time basis to qualify for one of these cards,
  • Get an unsecured card: Several unsecured credit cards don’t require a credit history. These cards offer basic features and low credit limits, but they do let you build your credit through timely payments. As your credit score improves, you’ll become eligible for better cards with more benefits and rewards.

If all else fails, you can always get a prepaid card. However, prepaid cards are not credit cards and they won’t help you build your credit history.

Another way to establish a credit history is through a credit builder loan from a community bank, online bank, or credit union. This “loan” is really more like a savings account.

When you take out a credit builder loan, the proceeds are deposited into a CD or savings accounts controlled by the lender. Then, each time you make a monthly payment that gets reported to the three credit bureaus. When you’ve fully repaid the loan, the lender will refund the original deposit plus interest, and you’ll have established a credit history.

13. How Can I Get a Credit Card Without a Credit Check?

You can get a prepaid card without a credit check, but that’s not really a credit card. Some secured credit cards, such as the OpenSky® Secured Visa® Credit Card, don’t require a credit check either.

It’s a lot harder to find an unsecured card that doesn’t require a credit check. In fact, we don’t know of any. But American ingenuity has spawned a few hybrid products that can put a credit card in your wallet without a credit check.

For example, Self offers a credit builder account that can get you a secured Visa credit card in as little as three months without a credit check. Eventually, you’ll be able to graduate to an unsecured credit card. Chime Bank offers a very similar product with no credit check required.

Many unsecured credit cards offer prequalification without a credit check. This is useful because it allows you to eliminate cards without submitting to a credit check. However, to complete the application, the card issuer will check your credit with a hard inquiry of your credit report, which can lower your credit score slightly.

14. Is a Prepaid Card a Credit Card?

Prepaid cards do not extend credit. They are instead similar to debit cards, except that you fund them by depositing money into the card’s account rather than using a checking account. In fact, a prepaid card is perfect for folks who prefer not to have fiscal relations with a bank.

Prepaid Cards vs. Credit Cards

You can use a prepaid card wherever debit cards from the same network (Visa, Mastercard, Discover, or American Express) are accepted. As described earlier, our top choice among Mastercard prepaid cards is the PayPal Prepaid Mastercard®. We also like the Mango Prepaid Mastercard® because of its low monthly fees.

Among the Visa prepaid cards, we give our top rating to the NetSpend® Visa® Prepaid Card, thanks in part to its handy mobile app. Another favorite is Unlimited by Green Dot, which offers cash back on eligible purchases and interest on deposited funds.

In the American Express universe, our first choice is Bluebird® by American Express, chiefly because it has eliminated monthly, transaction, and network ATM fees. The American Express Serve® prepaid card is similar — it offers more reloading options but also charges more fees.

Gift cards are somewhat similar to prepaid cards, although gift cards usually do not allow you to reload them with additional money. You can reload prepaid cards in several ways, including online and at designated retail locations.

15. Will I Have to Pay a Deposit to Open a Card Account?

The only card accounts that require a deposit are secured credit cards and prepaid cards. The deposit works differently for these two card types:

  • Secured cards: The deposit is placed into a collateral account maintained by the card issuer. Normally, the money simply sits in the account — in fact, it probably won’t even earn you any interest. However, the card issuer can tap into your collateral account if you miss a credit card payment or exceed the credit limit.
    For virtually all secured cards, the deposit amount is equal to the card’s credit limit. However, the Secured Mastercard® from Capital One gives you a $200 starting credit limit for as little as $49. The deposit, minus any outstanding balance, is refundable when you close a secured credit card account or graduate to an unsecured version of the card.
  • Prepaid cards: Your deposit goes into the card account. This is the money you spend when you use the prepaid card. When that money is gone, your prepaid card won’t work — you have to add more money to the card account.

Unsecured cards do not require cash deposits. Some unsecured cards can be linked to a checking account from the same issuing bank. This allows the credit card to cover a checking account overdraft without triggering a penalty fee, although there may be a small fee for the cash transfer.

About The Author

Eric Bank
Eric Bank Finance Writer

Eric Bank has been covering business and financial topics since 1985, specializing in taking complex subject matters and explaining them in simple terms for consumer audiences. Eric's writing regularly appears on Credible.com, eHow, WiseBread, The Nest, Get.com, Zacks, Chron, and dozens of other outlets. A former software engineer, Eric holds an M.B.A. from New York University and an M.S. in finance from DePaul University.

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