Credit Cards for Bad Credit

Have bad credit? Here are the top offers designed to help you rebuild your credit and improve your score. Make sure to pay on time and keep a low balance (relative to your credit limit) and this may improve your credit report each month. New to credit cards? See offers from our partners for students or those with no credit. Looking for more credit card options? Check out our experts’ list of the best credit cards.

Have bad credit? Here are the top offers designed to help you rebuild your credit and improve your score. Make sure to pay on time and keep a low balance (relative to your credit limit) and this may improve your credit report each month. New to credit cards? See offers from our partners for students or those with no credit. Looking for more credit card options? Check out our experts’ list of the best credit cards.

Editor: Laura Mohammad | Writer: Garrett Yarbrough

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October 19, 2020

Creditcard.com’s Best Credit Cards for Bad Credit of October 2020

Indigo® Platinum Mastercard®

Bad to Fair

Credit Recommended (300-670)

CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$0-$99
Balance Transfer Intro APR
N/A
Regular APR
24.90% fixed
Credit One Bank® Visa® Credit Card

Bad to Fair

Credit Recommended (300-670)

CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

1%
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV, terms apply.

At A Glance

Annual Fee
$0 - $99
Balance Transfer Intro APR
N/A
Regular APR
17.99% - 23.99% variable
Destiny™ Mastercard®

Bad to Fair

Credit Recommended (300-670)

CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$59-$99
Balance Transfer Intro APR
N/A
Regular APR
24.90% variable
OpenSky® Secured Visa® Credit Card

No Credit History

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$35
Balance Transfer Intro APR
N/A
Regular APR
17.39% variable
Milestone® Gold Mastercard®

Bad to Fair

Credit Recommended (300-670)

CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$35-$99
Balance Transfer Intro APR
N/A
Regular APR
24.90% fixed
Self - Credit Builder Account + Secured Visa® Credit Card

No Credit History

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
One Time $9 + Secured Card $25
Balance Transfer Intro APR
N/A
Regular APR
21.74% variable
Surge Mastercard® Credit Card

No Credit History

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
See Terms*
Balance Transfer Intro APR
N/A
Regular APR
See Terms*
First Access Visa® Credit Card

Bad to Fair

Credit Recommended (300-670)

CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
See Terms
Balance Transfer Intro APR
N/A
Regular APR
See Terms
Total Visa® Unsecured Credit Card

No Credit History

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
See Terms
Balance Transfer Intro APR
N/A
Regular APR
See Terms

Editorial disclosure: All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank's website for the most current information.


Comparing the Best Credit Cards for Bad Credit

Okay, so your credit isn’t at its best. Maybe you don’t have much experience with paying bills, or perhaps you’ve had a couple of late payments. Well, we’ve got your back.

It may seem counter intuitive, but one of the best and fastest ways to rebuild credit is with a credit card. That’s right. Believe it or not, with the right credit card, you can improve your credit in a few short months. The trick is to know how. We’ll tell you what you need to know and how to do it so there aren’t any surprises along the way. Here’s what we look at:


Best Credit Cards for Bad Credit in 2020

Capital One® Secured Mastercard®

Why this is the best secured credit card for bad credit

This card is designed for the determined credit builder. Unlike many secured cards, there’s no annual fee, making the road to better credit a bit more accessible with responsible habits.

Pros

Your security deposit may be as low as $49 and you’ll get an initial credit line of $200. Plus, if you make your first 6 monthly payments on time, you’re automatically considered for a credit limit increase.

Cons

You won’t earn any rewards with this card, which is pretty standard for secured cards, barring a few exceptions such as the Discover it® Secured.

Credit-building features

This card comes with CreditWise, a Capital One program designed to help you monitor your credit score. You’ll receive alerts any time a change happens to your TransUnion credit report and be protected from potential fraud tied to your Social Security number.

Indigo® Platinum Mastercard®

Why it’s the best credit card for bad credit after bankruptcy

After a bankruptcy, the last thing you need is to further damage your score by applying for multiple cards only to be rejected. Luckily, you can qualify for this card even with a previous bankruptcy.

Pros

Should you find yourself in a bind and need cash, it could be a lifesaver thanks to its $0 cash advance fee during the first year (after that, $5 or 5% of the amount of each transaction, whichever is greater).

Cons

You may be charged an annual fee of $0-$99, which will immediately reduce your available credit. You also won’t earn any cash back, points or miles.

Credit-building features

You can check if you pre-qualify online before you apply for a sense of whether you’re likely to be approved. You’re also covered by fraud protection.

OpenSky® Secured Visa® Credit Card

Why it’s the best credit card for bad credit with no credit check

The card doesn’t require a credit check, so you won’t risk your score in applying. You don’t even need a bank account: You can pay your security deposit via check, Western Union or money order.

Pros

You can put down a deposit of up to $3,000 (and get a $3,000 credit limit) to help keep your credit utilization low. Also, should you need to carry a balance, the card’s 17.39% (variable) APR is relatively low.

Cons

You won’t earn any cash back, points or miles with this card. It also carries a $35 annual fee.

Credit-building features

OpenSky hosts a credit education page on its website to help support your credit-building journey.

Destiny™ Mastercard®

Why this is the best credit card for imperfect credit

With the Destiny Mastercard, your past financial mistakes don’t matter as much. Even with a prior bankruptcy on your credit report, you may still qualify and can begin building your bright financial future.

Pros

The Destiny Mastercard is not a secured card, so there’s no deposit required. Plus, your payment history is reported to all 3 credit bureaus monthly.

Cons

You won’t earn rewards, and you’ll have to pay an annual fee of $59-$99.

Credit-building features

Pre-qualification is available with this card, so you can see whether you’re eligible without any impact on your credit score.

Credit One Bank® Visa® Credit Card

Why this is the best credit card for bad credit with a low annual fee

The maximum annual fee you’ll pay with this card is $99, but it could be as low as $0, depending on your creditworthiness. If you choose to see whether you prequalify for the card, you’ll get an idea of what your annual fee will be and can decide whether it’s worth it to you.

Pros

This card rewards the everyday essentials at a rate of 1% cash back on gas, groceries, and services such as mobile phone, internet, cable and satellite TV. Terms apply. Plus, there’s no security deposit required.

Cons

You should be aware of all potential fees and how likely you are to trigger them before applying for this card. There are fees associated with cash advances and foreign transactions on top of a high ongoing purchase APR of 17.99% to 23.99% Variable.

Credit-building features

A free monthly credit report will be sent to you through Experian, a great way to keep a close watch on your progress. Also, you’ll be protected from fraud as a cardholder.

Self – Credit Builder Account + Secured Visa® Credit Card

Why it’s the best financial product for establishing credit

The Self – Credit Builder Account + Secured Visa Credit Card doesn’t require credit history, and you dodge any credit dings since there is no hard credit pull. You also enjoy features like credit monitoring and account alerts to help you stay on track.

Pros

After opening the account, you’ll be automatically approved for the card once you’ve made 3 consecutive timely payments and at least $100 in savings. These payments are reported to all 3 credit bureaus to boost your credit before even receiving the card.

Cons

Because no credit checks are needed, you’ll have to wait to receive your deposit (plus interest) until your 12- to 24-month payments are complete. There’s also a one-time $9 account fee and a $25 annual fee on the secured card. Carrying a balance means you could pay interest on your loan and card.

Credit-building features

Unlike other secured card options, your repaired credit is stronger since this loan-and-card combo helps build a credit mix – worth 10% of a good credit score – with all 3 credit bureaus. The interest rates and eligibility requirements for the secured card also encourage healthy credit activity.

Milestone® Gold Mastercard®

Why it’s the best credit card for bad credit with quick pre-qualification

Its pre-qualification tool should help you get a sense of your approval chances without impacting your credit score. And if your credit profile isn’t a match, you may be invited to apply for another card.

Pros

You can qualify for the card even with a previous bankruptcy, and its foreign transaction fee – 1% of each transaction – is much lower than that of many competing cards.

Cons

If you struggle with paying on time, this card could cost you: A penalty APR of 29.90% may kick in after late payments and could apply to your account indefinitely.

Credit-building features

It includes fraud protection, so you won’t be liable for any charges made if your card is lost or stolen.

Surge Mastercard Credit Card

Why it’s the best credit card for bad credit with a high limit

If you’re approved for the unsecured version of the card, you can get a credit limit of $300 – $750, which is fairly high for someone with damaged credit.

Pros

This card could be a good option if you’d rather not pay a deposit. You’ll also have a grace period of 25 days after your last billing cycle to pay your balance with no interest charges.

Cons

There’s no guarantee you’ll be offered the unsecured version of the card. Such a low credit ceiling may make it difficult to keep your credit utilization in check, which is a key factor in credit scoring.

Credit-building features

Continental Finance states that your account will be reviewed for a credit limit increase after 6 months, which should incentivize you to stick to responsible spending and payment habits.

First Access Visa® Credit Card

Why it’s the best credit card for bad credit with instant approval

You can get an approval decision in as little as 60 seconds – no waiting around for days only to be denied.

Pros

You could get a $300 credit limit without putting down a deposit. Plus, if you need the card immediately, you can pay an additional fee to get it more quickly via Expedited Processing.

Cons

In exchange for the chance to rebuild your credit without putting down a deposit, you’ll pay a lot in fees, including an annual fee, a one-time Program Fee and, after the first year, a monthly servicing fee. You may even be asked to pay a fee if you accept a higher credit limit after your first year.

Credit-building features

The card reports monthly to all 3 major credit reporting agencies.

Total Visa® Unsecured Credit Card

Why it’s the best credit card for bad credit with personalized design

If you love the idea of seeing kittens and puppies (or a balmy beach) every time you pull out your credit card, the Total Visa Unsecured Credit Card has these and other card fronts to choose from.

Pros

You don’t have to put a security deposit down with this card. Also, the initial credit limit is typically $300, which is a bit higher than many secured credit cards.

Cons

This card has a number of little-known fees, including a program fee and a monthly servicing fee after the first year. See terms. There is also a credit limit increase fee of 20% of the amount. You’ll want to avoid adding authorized users or taking out cash advances to limit fees. Also, foreign transactions aren’t allowed, making this card of limited value for the overseas traveler.

Credit-building features

This card offers a quick application process. If you’ve had trouble getting a credit card application accepted and need to open a card as soon as possible, the Total Visa can be a good option.

Summary of the Best Credit Cards for Bad Credit

Credit CardBest forAnnual FeeDeposit Requirement
Capital One® Secured Mastercard®Secured card for bad credit$0$49-$200
Indigo® Platinum Mastercard®Credit card for after bankruptcy$0-$99$0
OpenSky® Secured Visa® Credit CardNo credit check$35$200-$3,000
Destiny™ Mastercard®Imperfect Credit$59-$99$0
Credit One Bank® Visa® Credit CardLow Annual Fee$0 - $99$0
Self – Credit Builder Account + Secured Visa Credit CardEstablishing CreditOne Time $9 + Secured Card $25$0
Milestone® Gold Mastercard®Quick prequalification$35-$99See terms*
Surge Mastercard Credit CardCredit card with a high limitSee Terms*$0

Research methodology: how we got to our top picks

Credit cards for bad credit analyzed: 269

Criteria used: credit needed: deposit required (if any); annual fee; regular APR; other rates and fees, including hidden fees such as copy fees and new card fees; customer service; ability to improve credit line; tools to track credit score; rewards rates; security; and miscellaneous benefits, such as no foreign transaction fees and extended warranty protection.

What is bad credit?

A “bad credit” score is typically under 580 out of a range of 300-850 as defined by FICO, with 850 being the best possible score. Using the same 300-850 scale, a VantageScore defines “poor credit” as a credit score under 550.

To get a good or excellent rating, you’ll want to shoot for at least 700. Below that, you’ll be offered higher interest rates and other less-than-stellar offers for financial products.

How many people have bad credit?

According to a study by the credit bureau Experian, about 16% of consumers have bad credit, and more than a third of the population has what lenders call a subprime score, which includes the fair and poor categories.

Here’s how credit scores break down in the U.S.:

Credit scoreRating% of peopleImpact
300-579Poor16%Credit applicants may be required to pay a fee or deposit, and applicants with this rating may not be approved for credit at all.
580-669Fair18%Applicants with scores in this range are considered to be subprime borrowers.
670-739Good21%Only 8% of applicants in this score range are likely to become seriously delinquent in the future.
740-799Very good25%Applicants with scores here are likely to receive better than average rates from lenders.
800-850Exceptional20%Applicants with scores in this range are at the top of the list for the best rates from lenders.

How do you get bad credit?

You can end up with bad credit in a variety of ways, including:

  • Credit card or loan defaults – As you might expect, failing to pay off your credit card bills or pay back a loan – also known as defaulting – marks you as a clear credit risk to lenders.
  • Late payments – Your payment history accounts for 35% of your credit score. If you’re late with your payments – be they credit cards, student loans or mortgages – your credit will take a big hit.
  • Maxing out your cardsCredit utilization – the amount you’ve borrowed compared to your total available credit – accounts for another 30% of your score. While you may have heard an old rule of thumb that says you should keep your credit utilization below 30%, this is a myth. The lower your credit utilization, the better.
  • Charge offs – When a creditor decides you have no intention of paying back your debt and stops collection attempts, your account will become charged off.
  • Bankruptcy ‐ While it’s sometimes your only option to get out from under debt, bankruptcy is a credit score disaster, and should only be used as a last resort.
  • Foreclosure – The higher your starting credit score, the bigger a drop you’ll see as a result of foreclosure (as much as 140 points according to FICO research).
  • Judgments – Judgments show lenders that the court system had to force you to pay off your debt. Be sure to settle your debts, as an unpaid judgment is worse than a paid judgment.

What are the effects of bad credit?

You’ll face higher interest rates, trouble with credit and loan application approval, difficulty renting an apartment, higher insurance premiums and even trouble getting certain jobs.

What to look out for in a credit card for bad credit

With a proper amount of research and consideration, a credit card for bad credit can be a lifeline for rebuilding your credit. However, you need to do your research. Some credit cards for bad credit compensate for riskier lending with high APRs and harsh penalties. Especially if you’re inexperienced when it comes to credit, you should weigh the benefits against potential pitfalls.

Here are the key elements to keep in mind when evaluating credit cards for bad credit:

  • Fees: Credit cards for people with bad credit tend to carry a lot of fees, so take note of any annual fees, program fees, inactive account fees, or any others. To find the info you need, take a look at the card’s rates and fees on the application page: Primary fees – late fee, foreign transaction, etc. – are shown at the top of the document (called the Schumer Box), but keep an eye out for lesser-known fees appearing further down in the text.
  • APR: Cards for bad credit often bring along high interest rates and in an unfortunate situation – penalty APRs. As such, getting the lowest rate possible should be one of your top priorities if you know you’ll carry a balance.
  • Minimum/maximum security deposit: If your card requires a deposit, check the range offered to see if it makes sense. Can you afford to tie up $1,000?
  • Credit limit: You’ll want to be sure the card offers a limit that’s high enough to allow you to keep your credit utilization low.
  • Be wary of targeted mailers: Watch out for mailings that target your situation. Banks have been found to send these disproportionally to people with less formal education.

How to fix bad credit

There are a handful of steps that can get you the score you need for the credit card you want – just follow the scoring model of FICO.

How your FICO® credit score is calculated

Payment history

At 35%, the most impactful element of your credit score is whether you’ve consistently paid your monthly statement on time. One late payment can cause your score to drop into a lower range.

How to boost your score: Pay on time. Tools like account alerts and automatic payments can help you avoid a missed payment if you’ve got a lot on your plate. If you’re new to credit, becoming an authorized user can boost your score as long as the primary cardholder pays on time and in full each month.

Credit utilization ratio

Your credit utilization ratio is how much you owe on your cards compared to how much credit you have available. If you owe $100 and you have $1,000 in available credit, your ratio is 10%, which is good. The lower the ratio the better. This makes up 30% of your score.

How to boost your score: Whittle down your balance, or better yet, pay in full each month. Consider making early, multiple payments to keep your utilization ratio low at all times, since you don’t know when during the month your credit information will be sent.

Credit history

The average credit history of your accounts and how often they’re used decide 15% of your credit score.

How to boost your score: Keep your old account open. If it isn’t a favorite card, consider setting up a small recurring automatic charge on the card, like a streaming subscription, along with an automatic payment to ensure you never miss a bill.

Credit mix

Holding a variety of credit types makes up 10% of your credit score. Successfully maintaining installment loans (such as car loans) along with revolving credit (such as credit cards) shows lenders you have experience managing diverse credit lines.

How to boost your score: Consider other credit lines. Of course, avoid unnecessary debt, but branching out with a small credit-builder loan could slightly improve your score.

New credit

The last 10% of your credit score comes from taking on new credit. When you apply for a new credit card, you are authorizing a hard inquiry (or “hard pull”), one of which can temporarily ding your credit score by only about 5 points, and only for a few months.

How to boost your score: Avoid frequent credit applications. Apply for credit when you need it, but creditors could see you as risky if they find a lot of hard inquiries on your credit report. Use preapproval tools like CardMatch™ to see if you prequalify.

Dispute suspicious credit activity

Of course, be sure to check your credit reports for free at AnnualCreditReport.com. An error or suspicious activity on your credit report could seriously damage your credit score if it goes unnoticed.

If you’ve been a victim of fraud or if you review your credit report and find mistakes, be sure to dispute the incorrect items. Many issuers provide free monthly credit reports and credit monitoring services to help you catch errors or identity theft early on.

Credit score myths

Credit bureau Experian found that there are several common credit scoring misconceptions among consumers. To avoid falling for some of these credit score myths, let’s clear some things up:

  • Closing a credit card account does not improve your score – it usually lowers it. However, sometimes it makes sense to close an account if you’re dealing with high fees.
  • Marital status isn’t part of your credit report.
  • Opening a new credit card account can be a tool to boost your score.
  • Healthy credit isn’t required to enter a foreign country.
  • Checking your credit report will not hurt your score.
  • Late payments on things like utility bills are sometimes, but not always included in credit scores.

How long does it take to rebuild credit?

With responsible card use, you can see your credit score improve in a matter of months. That said, some negative items on your report will take years to be fully “erased.” The chart below can help familiarize yourself with your credit report to make sure any crucial mistakes are avoided:

Time to see impact / time to fall off reportActivity
1-3 months
  • Fixed mistakes and disputed fraudulent activity
  • Paying off credit card balances
12-24 months
  • Hard inquiries (remain on report for up to 2 years, but no impact after 12 months)
7-10 years
  • Late payments (stay on report for 7 years, but impact can be lessened in around 2 years with good credit behavior)
  • Charged off accounts (7 years from original delinquency date of account)
  • Foreclosures (7 years)
  • Chapter 13 bankruptcy (7 years)
  • Chapter 7 bankruptcy (10 years)
  • Closed accounts in good standing (10 years)

Source: Experian Information Solutions

What to do if your application is denied

Luckily, you won’t be left in the dark on the “why,” as issuers are legally required to send you an adverse action notice explaining why you were denied.

Here are some common reasons for denial and what you can do about them:

  • Too much debt – Your balances are too high. Make a budget and pay more than the minimum each month to pay down your existing debt.
  • Limited credit history – Wait a couple of months, then apply for a secured card designed for credit building. Within months, your score will improve with on-time payments.
  • Low income – Next time, try a card that is not a premium product, but has the features you are looking for.
  • Too many applications – Take a break from applying for cards for several months and focus on building your credit with a credit-builder loan.
  • Too young – People under 21 must have an independent source of income to get a card, but you can be an authorized user and still build credit
  • Negative information on credit reports – Late payments or judgments, such as bankruptcies, take time to drop off your reports. Just pay on time and in full going forward.
  • Score too low – If the issue is your credit score, you can look at a credit-builder loan at your credit union. About 1 in 5 credit unions offer credit-builder loans.

FAQ: Credit cards and bad credit

When you have a bad credit score and are looking for a new credit card, it can be tough to know where to begin. Check out these commonly asked questions to get a sense of which direction you should go.

Can you get a credit card with no bank account?

It will be very difficult to get a credit card without a bank account. Even most cards backed by a deposit require you to have a bank account. One exception is the OpenSky Secured Visa: You can pay your security deposit via money order or have someone send the issuer a check or transfer on your behalf.

Can you prequalify for a credit card with bad credit?

You certainly can, though not all issuers offer prequalification. Luckily, those that do typically determine who prequalifies for a card with a soft credit pull, which won’t impact your credit score. That said, your application can still be denied even after you’ve prequalified.

Credit cards for bad credit that offer prequalification include:

Can you get a credit card after bankruptcy?

Yes. Not only is it possible to find a credit card after bankruptcy, it’s a great way to get your credit back on track. To save time and protect your credit score, it’s best to only apply for credit cards designed for bad credit and rebuilding credit. Indeed, a few such cards explicitly state that previous bankruptcy is OK, including the Indigo Platinum Mastercard and the Milestone Gold Mastercard.

Secured vs. unsecured credit cards for bad credit

There are two main types of cards to consider when you’re looking for a credit card with bad credit: secured and unsecured cards. Both can be a useful tool in your credit-rebuilding efforts.

Secured credit cards

Secured cards require a refundable deposit, which is usually equal to your credit limit. With many cards, after 6-12 months of on-time payments, you should be able to get your deposit back and graduate to a traditional (unsecured) credit card with a higher limit.

Examples of secured credit cards for bad credit:
CardCredit RecommendedAnnual Fee
Capital One® Secured Mastercard®Limited/Bad Credit$0
Discover it® SecuredLimited/Bad Credit$0
First Progress Platinum Prestige Mastercard® Secured Credit CardBad Credit$49
OpenSky Secured Visa Credit CardNo Credit Check$35

Unsecured credit cards

An unsecured credit card, as the name implies, offers an “unsecured” line of credit, so you won’t have to put down a security deposit to borrow money. You’re given a credit limit based on your creditworthiness and can borrow up to that amount. A high credit limit will also likely improve your credit score by helping your credit utilization.

Examples of unsecured credit cards for bad credit:
CardCredit NeededAnnual Fee
Total Visa Unsecured Credit CardBad/Fair CreditSee Terms
Credit One Bank Unsecured Visa with Cash Back RewardsBad Credit$0 – $99
Credit One Bank Unsecured Visa with Free Credit Score AccessBad Credit$0 – $99

Can you do a balance transfer with bad credit?

It’s technically possible to do a balance transfer with bad credit, but it may not be practical. The only cards you’re likely to qualify for that allow balance transfers are secured cards, and it usually makes more sense to pay down a portion of your existing balance or wait until you’re eligible for better balance transfer cards.

Can you get blacklisted by a credit card company?

While there’s no official credit “blacklist,” if you’ve burned a credit card company in the past, they may be unlikely to offer you any new credit for years to come. Additionally, if you have a history of bounced checks or refusing to pay a negative balance at your bank, you could be flagged by ChexSystems, a consumer reporting agency that gathers reports of checking account misuse or fraud. Activity stays in a ChexSystems report for five years.

Can I use a store credit card to repair my bad credit?

A store credit card could be a solid bad credit option, offering a low entry barrier and a chance to build credit while you earn rewards at your favorite retailer.

Pros of using a store card for bad credit

  • Qualifying for a store credit card is usually easier.
  • You can build credit with responsible use.
  • Store cards offer money-saving store rewards, perks and discounts.
  • Store cards rarely charge an annual fee.

Cons of using a store card for bad credit

  • Store cards tend to carry extremely high APRs.
  • You could get stuck with deferred interest.
  • Store cards are often “closed loop” cards.
  • A store card could spark frivolous spending.

Bottom line: The best store credit card for bad credit is one that keeps you on track with your credit-building goals. To ensure good habits, pick a card tied to a store you visit frequently for everyday purchases.