View from the back of a girl standing in shopping centre walking area and holding credit card. Concept: credit cards for bad credit
Maja Mirosavljevic
By: mmirosavljevic
Read in 17 minutes

Best Credit Cards for Bad Credit

Did you know that you can still qualify for some credit cards even if you have a poor credit score?

That’s right: and the best credit card for bad credit for you is surely listed below. Moreover, if you use them properly, they can help you rebuild your credit and increase your credit score. That way, you can fix your past credit mistakes and create a better financial future for your business.

So, what credit cards can you get with bad credit? If you have a poor credit score (from 300 to 639) and you want to build your credit, consider applying for some of the best credit cards for bad credit.

Of course, if what you need is capital to finance your small business, a credit card might not be the best option. A small business loan could be a better alternative, and it can help you build your credit too.

Young business owner considering if he should get a credit card for bad credit

What is a credit card for bad credit?

The main difference from the credit cards you can obtain with a good credit score is that they are pretty simple cards. That’s perfectly fine because the whole point is to use them to build your credit and show that you’re financially responsible so you can apply for a better solution in the future.

Types of credit cards

Also, note that there are secured and unsecured cards for bad credit.

The difference is that secured credit cards for bad credit require a security deposit that protects the issuer if you fail to pay your debts. For this reason, it’s easier to get a secured credit card.

On the other hand, unsecured cards for bad credit don’t require a deposit, but they usually have high-interest rates and low credit limits.

icon depicting two credit cards for bad credit

Top 10 Best Credit Cards for Bad Credit

After researching the main requirements, such as deposits, annual fees, regular APR, and other conveniences, here is a list of the best 10 credit cards for bad credit.

  1. Credit One Bank Visa Credit Card
  2. Discover it Secured
  3. Capital One Secured Mastercard
  4. Indigo Platinum Mastercard
  5. DCU Visa Platinum Secured Credit Card
  6. Total Visa Credit Card
  7. OpenSky Secured Visa Credit Card
  8. Green Dot Platinum Visa Credit Card
  9. Credit Builder Secured Visa Credit Card
  10. First Progress Secured Mastercard

Keep reading to learn the terms and details of each credit card.

1. Credit One Bank Visa Credit Card

Credit One Bank Visa Credit Card, one of the best credit cards for bad credit

The Credit One Bank Visa Credit Card is an excellent option to improve your bad credit. Credit One Bank Visa Credit Card has a rewards program that allows you to receive a 1% cash back on purchases like groceries and gas and services like mobile internet, phone, and cable. Also, one of the great features is that you get to choose your own payment due date.

Details

Best for: building credit.

Minimum credit score required to qualify: 300

APR: 24-26.24% (variable).

Annual fees: $0-$75 for the first year, $0-$99 each additional year.

2. Discover it Secured

Discover it Secured, one of the best credit cards for bad credit

The Discover it Secured is one of the best credit cards for bad credit for cashback. With its reward program, Discover it Secured enables you to get  2% cashback on up to $1,000 a quarter at restaurants and gas stations, plus 1% on all other purchases. Just keep in mind that it requires a refundable deposit of $200.

Details

Best for: getting cashback

Minimum credit score required to qualify: 350

Regular APR: 22.99%

Annual fees: $0

3. Capital One Secured Mastercard

Capital One Secured Mastercard, one of the best credit cards for bad credit

The Capital One Secured Mastercard is one of the best credit-builder cards, given that it doesn’t come with annuals fees or hidden costs. Besides, it’s possible to get access to a higher credit line if you make on-time payments for five months. However, you need to put down a refundable deposit of  $49, $99, or $200 to get a credit limit of $200.

Details

Best for: rebuilding credit with minimal upfront costs

Minimum credit score required to qualify: 350

APR: 26.99% (variable)

Annual fees: $0

4. Indigo Platinum Mastercard

Indigo Platinum Mastercard, one of the best credit cards for bad credit

The Indigo Platinum Mastercard is one of the most convenient credit cards for bad credit for anybody who has filed bankruptcy; Celtic Bank issues the card. Indigo Platinum Mastercard offers an easy pre-qualification process that doesn’t affect your credit score. Plus, there are other convenient features such as only a 1% foreign transaction fee and travel benefits. For instance: if you pay for your car rental using this card, you’ll get coverage against theft and physical damage.

Details

Best for: anybody that has filed for bankruptcy

Minimum credit score required to qualify: 350

APR: 24.9%

Annual fees: $75 the first year, $99 after

5. DCU Visa Platinum Secured Credit Card

DCU Visa Platinum Secured Credit Card, one of the best credit cards for bad credit

The DCU Visa Platinum Secured Credit Card is an excellent choice for people with bad credit looking for an economical solution. DCU Visa Platinum Secured Credit Card comes with no fees, a low interest rate, and flexible credit amounts, meaning you can cash practically as much as you wish. Besides, it offers car rental, travel, and insurance benefits. Unfortunately, there are no rewards.

Details

Best for: low interests and no fees

Minimum credit score required to qualify: 300

APR: 11.50%

Annual fees: $0

6. Total Visa Credit Card

Total Visa Credit Card, one of the best credit cards for bad credit

The Total Visa Credit Card is one of the best credit cards for bad credit that will help you rebuild your credit. The bank will report your credit-building habits to the three main credit bureaus. However, Total Visa Credit Card comes with a program fee, an annual fee, a monthly service fee, and has an initial credit limit of only $300.

Details

Best for: people who need to become disciplined about their credit.

Minimum credit score required to qualify: 300

APR: 34.99%

Annual fees: $75 the first year, $48 after

7. OpenSky Secured Visa Credit Card

OpenSky Secured Visa Credit Card, one of the best credit cards for bad credit

The OpenSky Secured Visa Credit Card is a convenient option for anyone who wants to avoid a credit check. Plus, you don’t need a bank account to qualify, and you’ll be able to build your credit quickly, given that the issuer reports to the three major credit bureaus. On the other hand, OpenSky Secured Visa Credit Card has an annual fee and requires a $200 minimum deposit.

Details

Best for: no credit check

Minimum credit score required to qualify: 300

APR: 17.39%

Annual fees: $35

8. Green Dot Platinum Card

Green Dot Platinum Card, one of the best credit cards for bad credit

The Green Dot Platinum Card is one of the best credit cards for bad credit, especially if you’ve been struggling to get approved for a credit card. Green Dot Platinum Visa Credit Card is a credit card funded by your initial deposit. That means your credit limit is equal to the amount of the refundable security deposit. With on-time payments and responsible use, you could see your credit score improve. And, since there’s no credit check, there’s no effect on your credit when you apply.

Details

Best for: gaining credit discipline

There’s no credit check to qualify

APR: 19.99%

Annual fees: $39

9. Credit Builder Secured Visa Credit Card

Credit Builder Secured Visa Credit Card, one of the best credit cards for bad credit

Even though Credit Builder Secured Visa Credit Card doesn’t offer rewards and has a high APR, it has no annual fee. It allows you to set your own credit limit between $300 and $3,000 based on the amount you deposit into your Credit Builder Savings account. Armed Forces Bank will also help you build your credit history by reporting your financial performance to the three major credit bureaus.

Details

Best for: a flexible credit limit.

Minimum credit score required to qualify: 300

APR: 25.99% (variable).

Annual fees: $0

10. First Progress Secured Mastercard

First Progress Secured Mastercard, one of the best credit cards for bad credit

The last option for the best credit cards for bad credit is First Progress Secured Mastercard, which has 3 different credit card options. There is no minimum credit score or history required to get approved. Likewise, the use of this credit card is reported to the three major reporting agencies. The minimum deposit required is $200.

Details

Best for: building or rebuilding your credit history

It doesn’t require a minimum credit score to qualify

APR: 5.24% for the Platinum Prestige, 9.24% for the Platinum Select, and 15.24% for the Platinum Elite

Annual fees: $29, $39, and $49, respectively

Most common credit card requirements

It is important that, before applying for a credit card, you make sure you know and understand all the requirements that the issuer asks for. This will make things easier for you when you apply for a card, as it will make the process easier and faster.

Of course, all banks or financial institutions have unique requirements, but here are the general ones:

  • SSN (although there are institutions that accept ITINs)
  • EIN (for business credit cards)
  • Proof of income
  • Security deposit (the minimum amount will depend on the bank, the maximum of how much you want your limit to be)
  • Your credit score (some credit cards will ask you to have a certain score, even if it is low, in order to be approved)

two hand exchanging money representing business financing

Our recommendation: improve your credit

Our priority is to help businesses improve their financial performance and thus access better capital opportunities. For this reason, we have numerous resources that will help you rebuild or improve your credit.

Now that you’ve discovered the best credit cards for bad credit, learn how to improve your credit score to access better business opportunities:

  • Always pay all your bills on time
  • Make sure your landlord reports your rent to the credit bureaus
  • Check your credit reports and make sure they have no errors
  • Do not exceed 30% of your credit line
  • Do not make too many credit applications, it’s better to do your research before so you can apply for only one financial product
  • If you have already paid your credit line in full, don’t close it, keep it open and unused

These are only some basic tips, but if you want to understand them more thoroughly or discover more strategies, we recommend reading:

Credit score concept. Vector of a businessman pushing scale changing credit information from poor to good. concept: how to improve your credit score

Everything you need to know to improve your credit score

Is There Any Other Alternative to Access Capital With No Credit History?

Yes, there is!

A credit card is not the only option for people with bad credit.

Small business loans are a great alternative.

Unlike cards, a business loan can offer you much more cash, which translates into many more investments. This will allow you to grow your business while improving your credit history.

In addition, with a card, you do not receive cash, you can only use it to make certain purchases. With a loan, you receive cash in your bank account to use as you want (as long as the expenses are allowed by the lender).

Easy-to-approve credit cards often have VERY high interest rates, plus many fees and annuities. This ends up turning them into a financial product that, in the long run, is very expensive. On the other hand, loans, even those for people with bad credit, tend to have more affordable interest rates that allow you to strengthen your business without going into excess debt.

These are just some of the reasons why many entrepreneurs prefer to apply for business loans.

Not convinced yet? Find here a detailed comparison of business credit cards with our business loans.

And if we’re talking about the best lenders, we need to talk about Camino Financial.

logo Camino Financial

Why Camino should be your lender

You don’t need a credit history or a minimum FICO score to qualify for a business loan with us, just a few simple requirements. However, remember that solid credit history will allow you to be eligible for lower interest rates. Besides, we offer:

  • Fast funding.
  • Larger loan amounts than the credit cards shown above.
  • So you know exactly what you owe every month and are in control of your finances, we offer fixed monthly payments.
  • Lower interest rates than most credit cards.
  • Apart from the interest, you only have to pay a closing fee. No hidden costs. 
  • Our loans are unsecured: you don’t need to put up collateral to guarantee your loan.
  • Applying for a loan with us won’t impact your credit.
  • We report all your payments to Experian so that you can build your credit.

The best thing is that you’ll be able to know how much your monthly payments will be even before applying! This way you can make sure Camino Financial is your best option. You just have to use this calculator to find out how much the loan will cost you.

Term Loan Calculator


Credit Cards for Bad Credit FAQs

What is the easiest credit card to get with bad credit?

All of the credit cards listed above are designed for people with bad credit. Check the minimum credit score required to qualify and the other features to find the one that best suits your needs.

What is the easiest credit card to be approved for?

OpenSky Secured Visa Credit Card and Green Dot Platinum Visa Credit Card may be the best options since they don’t perform a credit check.

What credit cards can I get with a 500 credit score?

If you have a credit score of 500 or below, you can apply for a secured credit card (meaning you’ll be required to put up collateral to be approved).

Can I get a loan if I don’t have a credit score?

Yes! But you have to be very careful with what type of lender you apply with. For example, Merchant Cash Advances (MCAs) or payday loans might not require you to have a good credit score but are VERY expensive.

Other lenders, like Camino Financial, can approve a loan even if you have bad credit if you are already working to repair it.

 

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