The Best Credit Cards for Bad Credit

A credit score below 600 falls into the “bad credit” category. There are a few ways you can end up in a tough spot: you miss some payments, you have an account go to collections, you declare bankruptcy, or you experience a foreclosure. These mistakes, big and small, can severely damage your credit score and make it difficult for you to get a credit card or a loan for years to come. It’s also possible you’ve done nothing wrong and simply have no credit history at all.
Having a bad score, or even a “fair” or “average” score of 600-675, can restrict your access to credit cards. But even if you can’t qualify for your ideal card, responsible credit card use is one of the best ways to boost your score. If you make all your payments on time and keep your credit card balance low, your credit score will improve over time. Then you’ll get access to better credit card offers, as well as auto loans, personal or business loans, and mortgages, down the road.
At The Simple Dollar, we’ve put together this list of the best credit cards for bad credit to help you repair your score.

Credit Score Under 600

A credit score under 600 is considered “bad,” which can make it nearly impossible to qualify for a typical credit card. Those with the lowest scores may need to start with a “secured” credit card, which requires you to make a refundable deposit into a special account to get the card. You then receive a credit limit that matches a certain percentage of the amount you put down. The benefit of secured cards is that they offer easy approval, even for those who have credit problems or no credit.
Other than that, secured cards work just like traditional credit cards. Card activity is reported to the credit bureaus, which allows cardholders to build a positive credit history and improve their credit score as they make on-time payments. This presents a major advantage over prepaid or debit cards, which don’t affect your score.
If your score is under 600, here are some credit cards to consider:

1. Capital One Secured MasterCard
   • Purchase APR: 22.9% (variable)
   • Annual Fee: $29
   • Credit Line: $200 – $3,000
   • Details: This card allows users to obtain a credit line that exceeds their deposit, which isn’t the case for all secured cards. A deposit of as little as $49 can give you a credit line of $200, with the opportunity to deposit more to get a credit line of up to $3,000. The card comes with a low annual fee of $29.
2. USAA Secured Credit Card
   • Purchase APR: 9.9% (variable)
   • Annual Fee: $35
   • Credit Line: $250 – $5,000
   • Details: The purchase APR, or Annual Percentage Rate, for this card is the lowest of any on the list. Cardholders have the choice of a MasterCard or American Express card, and are thus given flexibility in the benefits that come with each. There is a catch, however. You must be an active-duty or retired member of the U.S. military, or related to someone who is.
3. The Secured Visa from Merrick Bank
   • Purchase APR: 17.45% (variable)
   • Annual Fee: $36
   • Credit Line: $200 – $3,000
   • Details: Cardholders can automatically become eligible for a credit line increase without providing an additional deposit or paying extra fees. In addition to linking to your own bank account, your deposit can be sent via MoneyGram, Western Union, and USPS.
4. First Progress Platinum Elite MasterCard Secured Credit Card
   • Purchase APR: 19.99% (variable)
   • Annual Fee: $29
   • Credit Line: $300 – $2,000
   • Details: This card offers standard benefits for a secured card, including a credit line equal to your deposit and a reasonable $29 annual fee. The average approved score (559) makes this card accessible to many with bad credit. The interest rate on this card (19.99%) is slightly higher than some of the other secured credit cards surveyed.
5. U.S. Bank Secured Visa
   • Purchase APR: 20.99% (variable)
   • Annual Fee: $35
   • Credit Line: $300-$5,000
   • Details: This card does not charge additional fees above and beyond the reasonable $35 annual fee. You can get car rental discounts from companies such as Avis, Alamo, and Hertz when you use the card, and it also offers consumer fraud protection. Your security deposit is held in an interest-bearing account.
6. BankAmericard Secured Credit Card
• Purchase APR: 20.24% (variable)
• Annual Fee: $39
• Credit Line: $300-$4,900
• Details: This card has no application or monthly usage fees. After 12 months of responsible card use, Bank of America will reevaluate your status to see if you qualify to receive a non-secured credit card and have your security deposit returned.

Credit Score 600-650

A credit score in this range is still considered poor to fair, meaning you won’t be eligible for a wide range of credit card offers. However, standard credit cards (some with rewards) that don’t require a security deposit may  be available to you if your credit score falls within this range.
Here are five options for those making progress recovering from bad credit:

1. Barclaycard Rewards Mastercard
• Purchase APR: 0% intro APR for 6 months; 24.99% (variable) after intro period
• Annual Fee: None
• Credit Line: Varies
• Details: This card offers a nice mix of an introductory 2,500 points after your first purchase along with 1-2% cash back rewards on all purchases. A 0% introductory APR for 6 months can help you pay off existing balances, but watch out for the high 24.99% interest rate after the intro rate expires.
2. Capital One Cash Rewards Credit Card
• Purchase APR: 0% intro APR for 12 months; 12.9% – 20.9% (variable) after intro period
• Annual Fee: None
• Credit Line: Varies
• Details: This card features a 0% intro APR for 12 months, which is rare among cards for fair credit. This offer extends to transferred balances, too, which come with a 3% balance transfer fee. There’s a $100 introductory bonus when you spend $500 in the first three months. Earn 1% back on all purchases and a 50% bonus on cash back each year.
3. Capital One Classic Platinum Credit Card
• Purchase APR: 0% intro APR for 9 months; 19.8% (variable) after intro period
• Annual Fee: $39
• Credit Line: Varies
• Details: This card is free of transfer fees, meaning you can save on interest for the first 9 months when combined with the 0% APR offer. Beyond that, this card offers few frills beyond that of standard credit cards.
4. Visa Platinum from Credit One Bank
• Purchase APR: 23.9% (variable)
• Annual Fee: $75 first year; $99 thereafter
• Credit Line: Starting at $300
• Details: With this card, you’ll have access to unsecured credit at a reasonable cost. The purchase APR of 23.9% is on the higher end, as is the $75-$99 annual fee. This card otherwise contains the standard protections and benefits of a Visa card, like 0% fraud liability and auto rental collision coverage.

Credit Score 650-700

Scores in this range are approaching a “good” credit score, which will open up more credit card options. This could include different credit card types, rewards and balance transfer options.

1. Discover it
• Purchase APR: 0% intro APR for 14 months; 10.99 – 20.99% (variable) after intro period
• Annual Fee: None
• Credit Line: Varies
• Details: This card offers great cash back options of up to 5% on quarterly categories and 1% on everything. Unlike many other cards, there’s no late fee on your first late payment, and late payments won’t raise your interest rate. Discover offers 100% U.S. based customer service.
2. Capital One Venture Rewards Card
• Purchase APR: 13.9% – 20.9% (variable)
• Annual Fee: $59; waived for the first year
• Credit Line: Varies
• Details: This card requires a slightly higher score to qualify, but if you qualify, it’s worth it. You’ll earn a one-time bonus of 10,000 miles when you spend $1,000 in the first 3 months. Miles don’t expire and can be redeemed on any travel expense with any company.
3. Citi Simplicity Card
• Purchase APR: 0% intro APR for 18 months; 12.99% – 21.99% (variable) after intro period
• Annual Fee: None
• Credit Line: Varies
• Details: This card offers simple credit with few extras. You’ll never pay a late fee, penalty interest rate, or annual fee. The 0% APR for 18 months is among the longest interest-free terms offered.
4. Capital One Platinum Prestige
• Purchase APR: 0% intro APR for 3 months; 10.9% – 18.9% (variable)
• Annual Fee: None
• Credit Line: Varies
• Details: This card with no annual fee and a slightly lower credit score required in this range makes it accessible for consumers moving up the credit ranks. The 0% APR for 3 months offered coupled with the potential for a low standard APR (as low as 10.9%) can save money long-term on balance transfers.

If you don’t know your credit score, you can access one free credit report per year from each of the three credit bureaus (Experian, TransUnion, and Equifax) by visiting annualcreditreport.com. You can also get a credit report anytime you are denied credit so you can research the reasons behind the denial.
No matter which card you choose, make sure to focus on what’s important: rebuilding your credit. This means always paying your credit card bills on time and avoiding an outstanding balance from month to month. Be sure to see the card issuer’s website for details about terms and conditions of the offer.