Best Credit Cards for Bad Credit
While your options are unfortunately limited when you have damaged or bad credit, you need to start from somewhere in rebuilding your credit. Our Editor's Best Credit Cards for Bad Credit is the perfect place to do so because the products listed below are all tailored to building credit in an efficient, inexpensive manner.
We consider them to be the best bad credit credit cards because they have some of the lowest membership and one-time fees and they all report monthly to the major credit bureaus. While there are occasionally some unsecured options on this page, we always recommend getting the best secured credit card if you're willing to place a refundable security deposit. Read more about our Editor's Picks for the Best Credit Cards for Bad Credit.
More Options? Compare All Credit Cards for Bad Credit
Up-to-date as of: Feb 7, 2012
- Best Overall
- Best Credit Card Deals
- Best Credit Card Rates
- Best Balance Transfer
- Best Cash Back
- Best Rewards
- Best for Bad Credit
- Best for Business
Secured CardSecurity Deposit / Low Fees
- Min Deposit: $200
- Annual Fee: None 1st yr, $35 after
- Monthly Fee: None
- One-time Setup Fees: None
- Regular Rate: 7.99% (V)
- Learn More
- Min Deposit: $200
- Annual Fee: $29
- Monthly Fee: None
- One-time Setup Fees: None
- Regular Rate: 22.9% (V)
- Learn More
Unsecured CardNo Security Deposit / High Fees
Sorry,
I could not find any credit cards to recommend for this category.
-Editor
How do I know if I have bad credit?
There are a few easy ways to check your credit standing. First, you can pay to check your three major credit scores (a score between 300-619 is considered bad). Alternatively, you can use a free credit estimator that will give you an accurate approximation of your credit standing. Finally, if you are late on any kind of bill, your credit usage consistently approaches your limit, you have declared bankruptcy in the last three years and/or you have been more than 60 days late on a bill in the last nine years, you most likely have bad credit and should consider getting one of the best credit cards for bad credit.
How do I build credit?
Credit building is all about diluting negative information with positive information. Credit cards are great for this purpose because information about their use is reported to the major credit bureaus on a monthly basis. Therefore, by using a credit card responsibly, you are increasingly surrounding past mistakes with information about responsible use, thereby devaluing its importance. Interestingly, you don't even need to make purchases in order to build credit. It's considered responsible use to simply maintain a card at zero balance and in good standing. This is why when our editors look for the best credit cards for bad credit, they focus on identifying the credit card offers that report to all three credit bureaus and have the lowest fees rather than those with the lowest interest rates.
What's the difference between a secured credit card and an unsecured credit card?
Secured credit cards require you to place a refundable security deposit in opening them, but have lower fee structures than unsecured credit cards as a result. They are generally regarded as the best bad credit credit cards because they are fairly cheap and they make it impossible to spend beyond your means—an important feature for people who have made mistakes using credit in the past. Unsecured credit cards do not require security deposits and have high fees but provide revolving lines of credit, making them the best credit cards for people with bad credit who need access to credit because of an emergency.
About the Editors' Picks — Best Credit Cards for Bad Credit
Our editors' recommendations for the Best Credit Cards for Bad Credit are a reflection of their own subjective opinions, and they should not be relied upon as the sole basis for choosing your credit card. Certain offers originate from paying advertisers, and this will be noted on a card’s details page, when applicable. We work hard to present you with the most accurate credit card information, however, the credit card terms and conditions do not originate from us and thus we do not guarantee the accuracy of the information. Before applying for a credit card we recommend that you verify the credit card terms and conditions on the credit card company's web site. Please let us know if you have any questions or suggestions.
