Best Credit Cards for Bad Credit of December 2024
Updated: Dec 10, 2024+ 2 more+ 2 more
You can get a credit card with bad credit, but it won't be one of those cards you see advertised with rich rewards or exclusive perks. It will probably be fairly basic. That’s OK. You’re not going to be relying on this card forever. The idea is to use it to build or rebuild your credit, then move on to a better option. We believe the best credit cards for bad credit are secured cards.
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400+ credit cards reviewed by our team of experts (See our top picks)
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Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
You can get a credit card with bad credit, but it won't be one of those cards you see advertised with rich rewards or exclusive perks. It will probably be fairly basic. That’s OK. You’re not going to be relying on this card forever. The idea is to use it to build or rebuild your credit, then move on to a better option. We believe the best credit cards for bad credit are secured cards.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards.
Their work has appeared in The Associated Press, USA Today,
The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America"
and many other national, regional and local media outlets.
Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Show More
You can get a credit card with bad credit, but it won't be one of those cards you see advertised with rich rewards or exclusive perks. It will probably be fairly basic. That’s OK. You’re not going to be relying on this card forever. The idea is to use it to build or rebuild your credit, then move on to a better option. We believe the best credit cards for bad credit are secured cards.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
You can get a credit card with bad credit, but it won't be one of those cards you see advertised with rich rewards or exclusive perks. It will probably be fairly basic. That’s OK. You’re not going to be relying on this card forever. The idea is to use it to build or rebuild your credit, then move on to a better option. We believe the best credit cards for bad credit are secured cards.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
NerdWallet's Best Credit Cards for Bad Credit of December 2024
Chime Secured Credit Builder Visa® Credit Card: Best for No credit check + easy account management
Mission Lane Visa® Credit Card: Best for No-deposit alternative
Capital One Quicksilver Secured Cash Rewards Credit Card: Best for Rewards + upgrading
Secured Self Visa® Credit Card: Best for No upfront deposit or hard credit check
Discover it® Secured Credit Card: Best for Rewards, bonus offer & upgrading
OpenSky® Plus Secured Visa® Credit Card: Best for No credit check + no annual fee
OpenSky® Secured Visa® Credit Card: Best for No credit check + lower deposit
Capital One Platinum Secured Credit Card: Best for Low deposit
Firstcard® Secured Credit Builder Card: Best for International students and immigrants
Credit Builder Secured Visa® Credit Card: Best for Adjustable credit limit
Grow Credit Mastercard: Best for Building credit with subscriptions
DCU Visa® Platinum Secured Credit Card: Best for Low fees and interest
Show SummaryHide Summary
Best Credit Cards for Bad Credit
Credit card | NerdWallet rating | Annual fee | Intro APR | Regular APR | Learn more |
---|---|---|---|---|---|
Apply Now on Chime's website on Chime's website | Best for No credit check + easy account management | $0 | N/A | N/A | Apply Now on Chime's website on Chime's website |
Apply Now on Capital One's website on Capital One's website | Best for Rewards + upgrading | $0 | N/A | 29.99% Variable APR | Apply Now on Capital One's website on Capital One's website |
Apply Now on Discover's website, on Discover's website, or call 800-347-0264 | Best for Rewards, bonus offer & upgrading | $0 | 10.99% intro APR on Balance Transfers for 6 months | 27.49% Variable APR | Apply Now on Discover's website, on Discover's website, or call 800-347-0264 |
Apply Now on Self's website on Self's website | Best for No upfront deposit or hard credit check | $25 | N/A | 28.74% Variable | Apply Now on Self's website on Self's website |
Apply Now on Capital One's website on Capital One's website | Best for Low deposit | $0 | N/A | 29.99% Variable APR | Apply Now on Capital One's website on Capital One's website |
Apply Now on Capital Bank's website on Capital Bank's website | Best for No credit check + no annual fee | $0 | N/A | 29.49% Variable APR | Apply Now on Capital Bank's website on Capital Bank's website |
Apply Now on Capital Bank's website on Capital Bank's website | Best for No credit check + lower deposit | $35 | N/A | 25.14% Variable APR | Apply Now on Capital Bank's website on Capital Bank's website |
Apply Now on Mission Lane's website on Mission Lane's website | Best for No-deposit alternative | $0 | N/A | 29.99%-33.99% Variable APR | Apply Now on Mission Lane's website on Mission Lane's website |
Apply Now on Firstcard's website on Firstcard's website | Best for International students and immigrants | $4.99-$12.99 monthly or $48-$120/year depending on subscription plan | N/A | N/A | Apply Now on Firstcard's website on Firstcard's website |
Best for Adjustable credit limit | $0 | N/A | 25.99% Fixed APR | ||
Best for Building credit with subscriptions | $0 | N/A | None | ||
Best for Low fees and interest | $0 | N/A | 16.25% Variable |
Find the right credit card for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
No credit check + easy account management
The Chime Secured Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, doesn't require a credit check, and lets you automate your payments so you're never late. But to get it, you must be a Chime® banking customer.
Our Take
Instead of a security deposit, the card is backed by the money in a linked account, which you can add to at any time. The card won't let you spend any more than you have in the account, and when your payment is due, you can have the money taken from the account automatically. In a way, it works like a prepaid debit card, but unlike a prepaid card, it helps build credit. No credit check required to apply.
The safety precautions that make it an excellent tool for building credit can also get in the way of learning how to handle credit responsibly. Any card you graduate to will work quite differently. Chime has been the subject of multiple complaints related to the way it freezes customers' funds.
The Chime Secured Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, doesn't require a credit check, and lets you automate your payments so you're never late. But to get it, you must be a Chime® banking customer.
Rewards + upgrading
The $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card is the rare card for bad credit that also offers solid rewards, along with several other features ideal for those with poor credit (FICO scores of 629 or lower).
Product Details
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds
- Put down a refundable $200 security deposit to get a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- View Rates & Fees
Our Take
You'll earn 1.5% cash back on every purchase, which is as good as you'll find on a lot of cards for those with much higher credit scores. The card reports to all three credit bureaus, and Capital One will review your credit limit after six months to see if you're eligible for an increase. You may even eventually be able to upgrade to an unsecured card.
The $200 mininum upfront security deposit might be expensive for some.
The $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card is the rare card for bad credit that also offers solid rewards, along with several other features ideal for those with poor credit (FICO scores of 629 or lower).
Rewards, bonus offer & upgrading
The Discover it® Secured Credit Card has long been a NerdWallet favorite, for good reason. The rewards and other features on this secured card for bad credit are better than those on many unsecured cards for good credit.
Product Details
- No credit score required to apply. No Annual Fee.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Raise your credit score by 30+ points.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
- Terms and conditions apply.
- View Rates & Fees
Our Take
The Discover it® Secured Credit Card may be the best credit card available for people with bad credit. Not only does it have an annual fee of $0, but it also gives rewards: 2% cash back on up to $1,000 worth of spending per quarter on restaurants and gas, and 1% on all other spending. Handle your account responsibly for seven months, and Discover will review your account for a possible upgrade to an unsecured card.
The initial deposit must be paid with a bank account, so if you don’t have access to traditional financial services, you may be out of luck.
The Discover it® Secured Credit Card has long been a NerdWallet favorite, for good reason. The rewards and other features on this secured card for bad credit are better than those on many unsecured cards for good credit.
No upfront deposit or hard credit check
The Secured Self Visa® Credit Card offers those with no credit or poor credit a unique path to establishing a credit history. Unlike typical secured cards, it doesn't require an upfront security deposit or a hard credit check. But it does make you jump through some hoops that other secured cards don't.
Product Details
- One of the lowest deposit in the industry ($100).
- Users can micro-pay their way to a deposit (as low as $25/mo). Sample loans: $25/mo, 24 mos, 15.92% APR; $35/mo, 24 mos, 15.69% APR; $48/mo, 24 mos, 15.51% APR; $150/mo, 24 mos, 15.82% APR. See self.inc/pricing.
- $25 annual fee.
- Monthly credit limit increases.
- Applying won't impact your credit.
- Reports to all three bureaus.
- Start with a Credit Builder Account**.
- Make at least 3 monthly payments on time, have $100 or more in savings progress in your CreditBuilder Account, satisfy income requirements, and be in good standing. Then, you’ll be eligible for the Secured Self Visa® Credit Card.
- Card eligibility: Active Credit Builder Account in good standing, 3 on time payments, $100 or more in savings progress and satisfying income requirements. Criteria subject to change.
- Your savings progress from your Credit Builder Account acts as your security deposit for your secured Credit Card.
- *The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC.
- **Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., First Century Bank, N.A., each Member FDIC. Subject to credit approval.
Our Take
Instead of requiring a traditional deposit, this card has you open a Self Credit Builder Account and make regular payments on a secured installment loan. (See our review for more detail on how it works.) Your payments essentially go into a certificate of deposit; once you have enough saved up with Self, you can use that money as a deposit on the card. The minimum deposit is just $100, lower than on most secured cards. There's no hard credit check, either.
There's an annual fee of $25. And there's no sugar-coating it: The process of opening the Credit Builder Account, making payments and then funding the card deposit is complicated. But for those struggling to establish credit, it can be worth the effort.
The Secured Self Visa® Credit Card offers those with no credit or poor credit a unique path to establishing a credit history. Unlike typical secured cards, it doesn't require an upfront security deposit or a hard credit check. But it does make you jump through some hoops that other secured cards don't.
Low deposit
If your credit is damaged but not necessarily destroyed, the Capital One Platinum Secured Credit Card is an excellent place to start rebuilding it.
Product Details
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
- View Rates & Fees
Our Take
Most secured cards typically require you to make a deposit equal to your credit line, and you have to come up with the whole deposit upfront. With the Capital One Platinum Secured Credit Card, however, you can get a credit limit of $200 for a deposit of $49, $99 or $200. You can also make your deposit in installments. And you can be automatically considered for a higher credit limit with no additional deposit in as little as six months.
People with severely damaged credit, such as a bankruptcy on their credit report, might not qualify. You must have a checking or savings account.
If your credit is damaged but not necessarily destroyed, the Capital One Platinum Secured Credit Card is an excellent place to start rebuilding it.
No credit check + no annual fee
Like OpenSky's regular card, the OpenSky® Plus Secured Visa® Credit Card doesn't require a credit check or a bank account. But this one also doesn't charge an annual fee — although the minimum security deposit and the interest rate are both significantly higher.
Product Details
- New feature! Earn up to 10% cash back on everyday purchases
- No annual fee
- No credit check to apply. Find out instantly if you are approved- 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
- Monitor your credit progress with free access to your FICO Credit Score.
- Reports to all 3 major credit bureaus monthly to establish and build credit history.
- Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
- Secure your credit line with a refundable security deposit - as low as $300.
- Easy application, apply in less than 5 minutes right from your mobile device
- Offers flexible payment due dates which allow you to choose any available due date that fits your payment schedule
- Now you can make smaller partial payments towards funding your security deposit over 60 days
- Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
Our Take
The benefits are largely the same as with the annual-fee OpenSky card: The issuer doesn’t run a credit check, and you can make your deposit and pay your bills with a debit card, wire transfer, check or money order, making it an option for those without a traditional bank account. On top of that, there's no annual fee.
The minimum security deposit on this card is higher than on OpenSky's standard card. The APR is also considerably higher, so avoid carrying a balance. Also, your options for upgrading to an unsecured card are limited.
Like OpenSky's regular card, the OpenSky® Plus Secured Visa® Credit Card doesn't require a credit check or a bank account. But this one also doesn't charge an annual fee — although the minimum security deposit and the interest rate are both significantly higher.
No credit check + lower deposit
The OpenSky® Secured Visa® Credit Card is a strong option for people struggling to build or rebuild credit, as well as for those without access to traditional banking services. Click 'apply now' to see additional terms.
Product Details
- New feature! Earn up to 10% cash back on everyday purchases
- 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
- 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
Our Take
Unlike most other secured cards, the OpenSky® Secured Visa® Credit Card doesn’t require a credit check, so even people with badly damaged credit may be able to qualify. (You’ll still need to meet income standards, however.) Also setting this card apart from other secured cards: You don’t need a bank account. You can make your deposit and pay your bill by debit card, wire transfer, check or money order.
The card charges an annual fee. Also, your options for upgrading your account to an unsecured card are limited.
The OpenSky® Secured Visa® Credit Card is a strong option for people struggling to build or rebuild credit, as well as for those without access to traditional banking services. Click 'apply now' to see additional terms.
No-deposit alternative
The Mission Lane Visa® Credit Card could be a reasonable option for someone building or rebuilding credit who doesn't want to tie up money in a security deposit. Not everyone will qualify, but the issuer lets you see whether you do before you apply.
Product Details
- $0 Annual Fee. Clear terms and transparent pricing.
- See if you qualify instantly without harming your credit score.
- Be automatically considered for a higher credit line in as few as 7 months.
- Free, online credit score access for cardholders.
- No interest on purchases when you pay in full and on time each month.
- No security deposit required – get started today!
- Enjoy coverage from Visa®.
- Access your account anytime, anywhere with our mobile app.
- If you are charged interest, the charge will be no less than $0.50.
Our Take
The issuer's prequalification process shows you what offer you're eligible for without a "hard" credit check that affects your credit scores. (If you choose to apply after seeing the offer, then a hard check takes place.) That's an important consideration if you're struggling to build your credit profile and don't want to run the risk of a hard check only to be rejected. After approval, the issuer automatically reviews your account for potential credit line increases.
You won't earn rewards with this card. Rewards shouldn't be the main priority when building your credit, but it is a nice perk you'll get with some other credit-building cards.
The Mission Lane Visa® Credit Card could be a reasonable option for someone building or rebuilding credit who doesn't want to tie up money in a security deposit. Not everyone will qualify, but the issuer lets you see whether you do before you apply.
International students and immigrants
The Firstcard® Secured Credit Builder Card has extremely low barriers to entry and also earns rewards.
Product Details
- Build credit faster, cheaper, and safer
- No credit checks and no credit history are required to open a credit card
- Accepts immigrants and internationals without an SSN - apply with a passport and visa.
- 0% APR. Don’t worry about overspending. What you deposit is what you can spend.
- No account minimum, no interest, and no overdraft fee
- Get up to 15% Merchant Cashback at 29,000 partner merchants
- Get up to 10% Random Cashback on all qualifying transactions
- Earn 4.00% APY with Firstcard Premium, 2.00% APY with Firstcard+, or 0.75% APY with Firstcard Standard on the money in your Firstcard
- Earn an additional 1% Unlimited Cashback with Firstcard Premium on all qualifying transactions on top of the two cashback offerings (Merchant Cashback and Random Cashback)
- Monitor your credit score right in the app
- Get an in-depth monthly credit report with Firstcard+ and Firstcard Premium
- Instant access to your virtual card once your account is approved and you add your virtual card to your phone’s digital wallet
- Your money is protected with Firstcard — automatically insured up to $250,000 by FDIC (backed by the U.S. government)
Our Take
The Firstcard® Secured Credit Builder Card doesn't require a credit check, and it's even possible to get it without a Social Security number. Unlike other secured credit cards, there's no minimum required deposit amount, nor are there any interest charges.
There's an annual fee: $4.99-$12.99 monthly or $48-$120/year depending on subscription plan. And if you want a higher-end version of the card, you'll have to pay for that.
The Firstcard® Secured Credit Builder Card has extremely low barriers to entry and also earns rewards.
Adjustable credit limit
The Credit Builder Secured Visa® Credit Card from Armed Forces Bank isn't fancy, but that's OK. There's no annual fee, and you can add to your security deposit (and thus your credit limit) at any time.
Product Details
- Deposit an amount from $300 up to $3,000 into a Credit Builder Savings Account which will set the credit limit you request.
- Increase your credit limit by adding funds in increments of $50 or more to the Credit Builder savings account
- No application fee
- No over-the-limit fee
- Automatic reporting to the three major credit bureaus to help you build or repair your credit history
- With improvements to your credit score, graduate to an Unsecured Credit Card
Our Take
This no-fuss secured credit card has an annual fee of $0 and allows for credit lines of up to $3,000. You must open the account with at least a $300 deposit in your Credit Builder savings account, but you can add to your limit by depositing more (in $50 increments). The card reports to all three credit bureaus. And no, despite the bank's name, you don't need any military affiliation.
The $300 minimum initial deposit is higher than most cards require. Though the card has no annual fee, there's a $5 quarterly charge if you want a bill sent in the mail rather than receiving electronic statements.
The Credit Builder Secured Visa® Credit Card from Armed Forces Bank isn't fancy, but that's OK. There's no annual fee, and you can add to your security deposit (and thus your credit limit) at any time.
Building credit with subscriptions
The Grow Credit Mastercard helps you build credit through qualifying subscriptions and bill payments you're already making. There's no hard credit check and no interest charges.
Product Details
- Connect a bank account to apply for a Grow Credit interest-free Mastercard.
- Signing up is easy and completely free.
- Use your Grow Credit Mastercard to pay for your existing subscriptions or browse for new ones.
- Just sit back, relax and watch your credit score grow!
- Grow Credit is not taking new applications at this time.
Our Take
You can use the card to pay for qualifying monthly subscriptions and/or bill payments, though your spending limit on the card will depend on your membership tier with Grow Credit. Eligible payments include streaming services like Netflix and Spotify, as well as certain wireless phone providers. Your bill must be paid in full each month, so you can't carry a balance and therefore won't pay interest. The card reports to all three major credit bureaus.
This card rates lower than other options on this page because of its limited usability. It can help you build credit, but beyond subscriptions, you can't put so much as a pack of gum on it. There are multiple membership tiers, but all of them charge a monthly fee.
The Grow Credit Mastercard helps you build credit through qualifying subscriptions and bill payments you're already making. There's no hard credit check and no interest charges.
Low fees and interest
If you're trying to build credit, it's best not to carry a balance on your credit card. But if you have to do so, the DCU Visa® Platinum Secured Credit Card might be the least painful way.
Product Details
- Could help with building or rebuilding your credit – with responsible use.
- No annual, balance transfer, foreign transaction, or cash advance fees
- Fraud notifications and the ability to freeze/unfreeze your credit card
- Great Visa benefits on travel, live music, and more.
Our Take
The card has no annual fees, foreign transaction fees, cash advance fees or balance transfer fees, and its ongoing APR is relatively low for a card aimed at the credit-building population. Your account is secured with funds you put in a savings account with Digital Federal Credit Union. That makes it possible to get a really high credit limit if you've got a deposit to match, which in turn would allow you to use this card more like a "regular" card.
The $500 minimum deposit is quite pricey for a secured card and drags down the rating of what is an otherwise solid option. You also have to be a member of Digital Federal Credit Union, although anyone can join through membership in a partner organization.
If you're trying to build credit, it's best not to carry a balance on your credit card. But if you have to do so, the DCU Visa® Platinum Secured Credit Card might be the least painful way.
See more from Chime®
Chime says the following:
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
WHAT TO LOOK FOR IN A CREDIT CARD FOR BAD CREDIT
When you have bad credit, the primary purpose of getting a credit card is not to boost your spending power. It’s to improve your credit. So when choosing a credit card for bad credit, pay attention to these factors.
Eligibility criteria
Credit card options for people with bad credit — generally defined as scores below 630 — are limited. The popular rewards cards you see advertised typically require good or even excellent credit, and applying for cards you can’t qualify for can do more harm than good. So look for cards that are specifically marketed for people with low credit scores. (On NerdWallet reviews and “roundup” pages like this one, look for the “recommended credit score.”)
Other options include cards for people with no credit history at all. Take advantage of issuers’ pre-approval tools, which can give you an idea of which cards you can qualify for. Also consider credit cards that don’t perform a credit check.
Secured or unsecured
A secured credit card is one that requires a cash deposit to open the account. Most secured cards have a minimum deposit amount of $200 to $300, but some have no minimum. The amount you deposit typically becomes your credit limit. When you close the card or upgrade to a regular credit card, you can get that money back.
An unsecured card, by contrast, doesn’t require any collateral. An unsecured card can seem attractive because you don’t have to front the deposit, but many unsecured cards for people with bad credit have exorbitantly high fees.
Credit bureau reporting
A credit card can help you build credit only if it reports your account activity to the credit bureaus — the companies that assemble the credit reports that are the basis of credit scores. Look for a card that reports to all three of the major credit bureaus: Equifax, Experian and TransUnion.
Fees
Annual fees aren’t uncommon on credit cards for bad credit, especially among unsecured cards and those that don’t perform a credit check. But some cards are notorious for predatory fees — not just high annual fees, but also monthly maintenance fees, account activation fees, fees to increase your credit limit and more. Together, these fees can easily top $100 a year. And unlike with a deposit on a secured card, you can’t get that money back.
The best credit cards for people with bad credit have a reasonable annual fee, or none at all, and no hidden charges. Even if you have bad credit, you shouldn’t have to pay through the nose to get a solid credit card.
Upgrade path
Once your credit improves, you’ll probably want a credit card with better terms and more benefits. The most seamless option is to upgrade to another credit card from the same issuer. But some issuers specialize in cards for bad credit and, as a result, won’t have good options for you to move up to when you’re ready. In such cases, to get a better credit card, you’ll have to apply with another issuer, which will involve a hard pull on your credit report.
The lack of good upgrade options doesn’t have to be a dealbreaker. There are excellent cards available from companies that specialize in cards for less-than-great credit. Just be aware that there may be an extra step later on.
Credit card options for people with bad credit — generally defined as scores below 630 — are limited. The popular rewards cards you see advertised typically require good or even excellent credit, and applying for cards you can’t qualify for can do more harm than good. So look for cards that are specifically marketed for people with low credit scores. (On NerdWallet reviews and “roundup” pages like this one, look for the “recommended credit score.”)
Other options include cards for people with no credit history at all. Take advantage of issuers’ pre-approval tools, which can give you an idea of which cards you can qualify for. Also consider credit cards that don’t perform a credit check.
A secured credit card is one that requires a cash deposit to open the account. Most secured cards have a minimum deposit amount of $200 to $300, but some have no minimum. The amount you deposit typically becomes your credit limit. When you close the card or upgrade to a regular credit card, you can get that money back.
An unsecured card, by contrast, doesn’t require any collateral. An unsecured card can seem attractive because you don’t have to front the deposit, but many unsecured cards for people with bad credit have exorbitantly high fees.
A credit card can help you build credit only if it reports your account activity to the credit bureaus — the companies that assemble the credit reports that are the basis of credit scores. Look for a card that reports to all three of the major credit bureaus: Equifax, Experian and TransUnion.
Annual fees aren’t uncommon on credit cards for bad credit, especially among unsecured cards and those that don’t perform a credit check. But some cards are notorious for predatory fees — not just high annual fees, but also monthly maintenance fees, account activation fees, fees to increase your credit limit and more. Together, these fees can easily top $100 a year. And unlike with a deposit on a secured card, you can’t get that money back.
The best credit cards for people with bad credit have a reasonable annual fee, or none at all, and no hidden charges. Even if you have bad credit, you shouldn’t have to pay through the nose to get a solid credit card.
Once your credit improves, you’ll probably want a credit card with better terms and more benefits. The most seamless option is to upgrade to another credit card from the same issuer. But some issuers specialize in cards for bad credit and, as a result, won’t have good options for you to move up to when you’re ready. In such cases, to get a better credit card, you’ll have to apply with another issuer, which will involve a hard pull on your credit report.
The lack of good upgrade options doesn’t have to be a dealbreaker. There are excellent cards available from companies that specialize in cards for less-than-great credit. Just be aware that there may be an extra step later on.
SECURITY DEPOSITS: WHAT YOU NEED TO KNOW
As noted earlier, secured credit cards require a cash deposit to open the account. Some cards have a minimum deposit of $200 or more. We acknowledge that locking up that much money in a credit card deposit can be a significant financial hurdle for people living paycheck to paycheck. But if you can swing it, we believe that a secured card is the best option for most people with bad credit.
Most notably, the security deposit is completely refundable if you close your card account in good standing or upgrade to an unsecured card. Some issuers even pay interest on your security deposit. The deposit reduces the risk to the card issuer, which is what makes it possible to issue cards to people with bad credit. By contrast, unsecured cards for bad credit often deal with risk by charging high fees that can’t be recouped. Further, those fees might represent just as much of an out-of-pocket cost for a new cardholder as a security deposit.
Some secured credit cards do not have a minimum deposit amount. Your account is instead secured by the balance you have in a linked account, such as a checking or savings account. And some cards have flexible deposit requirements. The Capital One Platinum Secured Credit Card, for example, allows you to pay your security deposit in installments, and some applicants may qualify for a $200 credit limit with just a $49 or $99 security deposit (see rates and fees).
USING A CREDIT CARD TO IMPROVE YOUR CREDIT
Credit scores are essentially a measure of how likely a person is to repay money they’ve borrowed. The higher a person’s score, the greater the likelihood that they will repay what they owe. Improving your credit involves demonstrating that you can handle credit responsibly — and using a credit card is one of the best ways to do that.
Pay your credit card bill on time
Paying your bill on time every month demonstrates to lenders that you’re a trustworthy borrower. Ideally, you’re always paying your balance in full, rather than carrying debt month to month. When you pay in full each month, you’ll never get charged interest. If you can’t pay the entire balance, at least pay the minimum amount by the due date to avoid a late fee. Payments more than 30 days late are usually noted on your credit reports and can hurt your scores.
Don’t max out your credit card
A key element in your credit score is credit utilization, or how much of your available credit you’re using. A maxed-out card can be a sign of financial trouble, which translates to risk for lenders. Try to keep your utilization below 30% — the lower, the better. On a card with a $300 credit limit, for example, try not to let the balance get over $90.
Keep old credit card accounts open
The age of your open credit accounts is a factor in your credit score. The longer your credit history, the better. Don’t close a card account unless there’s a compelling reason, such as an annual fee on a card you don’t plan to use. Instead, keep the account open and use the card once or twice a year so the issuer doesn't close it for inactivity.
Keep new credit applications to a minimum
When you apply for a new line of credit — whether that’s a credit card, car loan, mortgage or something else — the lender will usually run a hard credit check, which can temporarily lower credit scores. Applying for multiple cards or loans within a short period of time can suggest you’re desperate for money and could cause scores to fall even more. Only apply for cards that you need and are likely to be approved for.
Track your progress
Check your credit report regularly, and monitor your credit score over time. You can get your credit score from NerdWallet, and a free credit report every week from the three major credit bureaus at annualcreditreport.com. If you notice errors on your credit reports, such as a late payment when you paid on time or negative marks that should have fallen off, dispute the error. Having errors wiped from your credit reports can improve your credit.
Paying your bill on time every month demonstrates to lenders that you’re a trustworthy borrower. Ideally, you’re always paying your balance in full, rather than carrying debt month to month. When you pay in full each month, you’ll never get charged interest. If you can’t pay the entire balance, at least pay the minimum amount by the due date to avoid a late fee. Payments more than 30 days late are usually noted on your credit reports and can hurt your scores.
A key element in your credit score is credit utilization, or how much of your available credit you’re using. A maxed-out card can be a sign of financial trouble, which translates to risk for lenders. Try to keep your utilization below 30% — the lower, the better. On a card with a $300 credit limit, for example, try not to let the balance get over $90.
The age of your open credit accounts is a factor in your credit score. The longer your credit history, the better. Don’t close a card account unless there’s a compelling reason, such as an annual fee on a card you don’t plan to use. Instead, keep the account open and use the card once or twice a year so the issuer doesn't close it for inactivity.
When you apply for a new line of credit — whether that’s a credit card, car loan, mortgage or something else — the lender will usually run a hard credit check, which can temporarily lower credit scores. Applying for multiple cards or loans within a short period of time can suggest you’re desperate for money and could cause scores to fall even more. Only apply for cards that you need and are likely to be approved for.
Check your credit report regularly, and monitor your credit score over time. You can get your credit score from NerdWallet, and a free credit report every week from the three major credit bureaus at annualcreditreport.com. If you notice errors on your credit reports, such as a late payment when you paid on time or negative marks that should have fallen off, dispute the error. Having errors wiped from your credit reports can improve your credit.
NEXT STEPS: AFTER YOUR CREDIT HAS IMPROVED
Once your credit has improved, you’ll probably start thinking about what to do with the credit card you got when you had bad credit. Here are some options:
When you upgrade to another card by way of a product change, you can preserve the credit history you built up with the previous card. If the upgrade involves moving from a secured card to an unsecured card, you can get your deposit back, too. Keep in mind, though, that the sign-up bonuses that come with many rewards credit cards, some of which are worth hundreds of dollars, are not available to customers who upgrade. The only way to get a sign-up bonus is to apply for a card outright and meet the spending requirements.
If your card’s issuer doesn’t have attractive upgrade options, you might still want to keep the card open, even if you apply for a better card somewhere else. Doing so keeps the credit limit on that card, which can lower your overall credit utilization. And credit scoring formulas like lengthy, active credit histories; if you cancel the card, that lowers the average age of your open accounts.
Yes, we just discussed why it makes sense to keep your old card account open. But sometimes closing the account is the right move. If your old card is a secured card, you’ll continue to have money locked up in a security deposit. If the card charges fees, you’ll continue paying those. Say you have a credit card with a $49 annual fee and a $12.50 monthly fee, a not-uncommon fee structure for an unsecured card for bad credit. That would mean it costs nearly $200 a year to use the card. If the card has a small credit limit and few perks, it may make sense to close the account and save yourself a ton of money in the long run.
ASK OUR CREDIT CARD EXPERTS
Melissa Lambarena
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
You don’t need to maintain a balance on a credit card at all times to build credit, but you do need to keep it open and active to stay on track with that goal. You can accomplish this by using the card to pay for a monthly recurring expense that can be paid off in full every month to avoid interest charges.
Melissa Lambarena
Writer, credit cards
Sara Rathner
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
There's no such thing as a joint credit score. It's always yours and yours alone, so you can’t depend on anyone else to build your credit for you. (However, if you have a joint loan with your spouse, late payments can affect both of your scores.)
Sara Rathner
Writer/spokesperson, credit cards
Paul Soucy
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
Building credit with a credit card isn’t complicated. Get a card, use the card, keep your balance relatively low, pay the bill on time and in full, and be patient. Don’t overthink it.
Paul Soucy
Content director, credit cards and travel rewards
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
There's an idea out there that credit cards for bad credit are all very expensive ... but they don't have to be. Any credit card can be expensive if you carry a balance, of course, because then you have to pay interest. But just because you have bad credit doesn't mean you're stuck paying outlandish fees. There are plenty of new options. Predatory "fee harvesters" aren't your only choice.
Kenley Young
Editor, credit cards
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
You don’t need to maintain a balance on a credit card at all times to build credit, but you do need to keep it open and active to stay on track with that goal. You can accomplish this by using the card to pay for a monthly recurring expense that can be paid off in full every month to avoid interest charges.
Melissa Lambarena
Writer, credit cards
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
There's no such thing as a joint credit score. It's always yours and yours alone, so you can’t depend on anyone else to build your credit for you. (However, if you have a joint loan with your spouse, late payments can affect both of your scores.)
Sara Rathner
Writer/spokesperson, credit cards
WHAT'S A COMMON MISCONCEPTION ABOUT CREDIT CARDS AND BAD CREDIT?
Building credit with a credit card isn’t complicated. Get a card, use the card, keep your balance relatively low, pay the bill on time and in full, and be patient. Don’t overthink it.
Paul Soucy
Content director, credit cards and travel rewards
FREQUENTLY ASKED QUESTIONS
What does "bad credit" mean in terms of credit cards?
Bad credit is generally defined as a credit score below 630 on a scale of 300 to 850. Credit scores measure how safe or risky it is to lend to someone. The higher the risk, the lower the score. If you’ve made mistakes with credit — missing multiple payments, maxing out accounts, having bills turned over to collection agencies, your score can drop into the bad-credit range. Also, if you’re new to credit, you might not have a credit score at all, which in many ways is functionally equivalent to bad credit — you’re considered a higher risk because you haven’t yet demonstrated your ability to handle borrowed money.
Can I get a credit card if I have bad credit?
Multiple credit card issuers have cards specifically designed for people with bad credit. (They’re often advertised as ideal for “rebuilding” credit.) These are generally “starter cards” — they don’t offer much in the way of rewards or perks, they charge high interest rates, and some of them come with steep fees. NerdWallet generally recommends secured credit cards to people with bad credit. Secured cards require you to put down a cash deposit that the card issuer holds as collateral in case you don’t pay your bill. You get that money back when you close your account in good standing or upgrade to a regular card.
Is a secured credit card my only option if I have bad credit?
A secured card isn't your only option for bad credit — but it's usually your best option. Some card issuers offer regular “unsecured” cards for people with bad credit. These don’t require a cash deposit, but they tend to come loaded with high fees. That’s money you can’t get back, unlike the deposit on a secured card.
What should I look for in a credit card for bad credit?
When looking for a credit card for bad credit, be realistic. You’re not going to find one with rich rewards or lavish perks. You’ll most likely have a high interest rate (although if you pay your bill in full every month, you won’t be charged interest). And your credit limit will likely be small; secured cards usually give you a credit line equal to your deposit. Beyond that, look at:
Fees. Look for annual fees of less than $50, and avoid cards that charge maintenance fees, application fees or processing fees. Many good secured cards don’t charge an annual fee at all.
Reporting to credit bureaus. Presumably, you want to use your card to build credit so you can qualify for better cards or loans down the road. But using your card can improve your credit only if your payments are reported to the credit bureaus, the companies that compile the credit reports that form the basis of credit scores. Look for a card that says it reports to all three major credit bureaus (Equifax, Experian and TransUnion).
Upgrade options. Ideally, after you’ve improved your credit, you could upgrade your account to a better card. That allows you to keep the account open — which is good for your credit score — while getting your deposit back. Many issuers of cards for bad credit have outstanding upgrade options. Others focus only on people with lower scores and might not have much to offer. The lack of an upgrade option shouldn't be a dealbreaker, but a clear upgrade path is a point in favor of some cards.
What do I need to apply for a credit card for bad credit?
You generally need to be at least 18 years old and have a Social Security number to be considered for a credit card. You’ll need to show that you have income, and in most cases (but not all), you must have a bank account. While “bad credit” by itself is obviously not a disqualifier when it comes to cards for bad credit, some issuers might still deny your application if your credit report shows serious problems such as a bankruptcy, a civil judgment or liens against you. Read more about qualifying for a card for bad credit.
METHODOLOGY
NerdWallet's Credit Cards team selects the best credit cards for bad credit based on overall value, as evidenced by star ratings, as well as suitability for specific kinds of consumers. Factors in our evaluation include annual and other fees, deposit requirements for secured cards (both the minimum and maximum allowed), interest rates, whether a card offers an option to upgrade to an unsecured account, the availability of free credit scores and other credit education and tools, reporting to credit bureaus, and other noteworthy features such as a rewards program or the ability to qualify without a credit check. Learn how NerdWallet rates credit cards.