Best Credit Cards for Bad Credit of January 2025

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.

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.

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.

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 reloadable debit card, but it also 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 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.

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.

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.

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 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.

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.

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 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.