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
- 24.90% fixed
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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.
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.
Updated: December 4, 2019
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:
Not sure where to start? We can help.
The Credit One Bank Visa Credit Card has some great features, such as choosing your own due date and access to a free Experian credit score. There are also a number of card designs to choose from, although there may be a fee.
The rewards are lower than the Discover it Secured Card, with 1% back on purchases such as gas, groceries, and services such as mobile phone, internet, cable, satellite TV (terms apply).
The foreign transaction fee is a low 1% and the hidden fees are kept to a minimum. Also, a previous bankruptcy is OK and there is pre-qualification, making the application fast and easy.
While there's no security deposit required with this card, there is a rising annual fee, and your initial credit limit may only range from $225-$300. Finally, there are no ongoing rewards and no sign-up bonus is offered.
Not only does this card offer rewards, it is unsecured, which means you don't have to put down a refundable security deposit in exchange for your credit limit.
This card's regular APR is crazy high, starting at 19.74%-25.74% variable. Also, there is an annual fee, which can be avoided if you are willing to take out a secured card, such as the Discover it Secured.
This card offers quick and easy pre-qualification with no impact on your credit score. Additionally, previous bankruptcy does not disqualify applicants from being approved.
Milestone® Gold Mastercard® does not offer the most competitive purchase APR among similar cards. It also doesn't offer cash back, miles, or points.
The Discover it Secured offers the rare feature for a credit-builder card of a balance transfer intro APR of 10.99% for 6 months, then 24.49% variable after that. Also, the ongoing rewards are excellent for a beginner card.
There's a lot to love about this card, although you may balk at the fact that as a secured card, you must put a refundable deposit down that typically matches your credit limit.
The card has a low barrier of entry and you can get an approval decision in seconds. And since it's an unsecured card, you won't have to put down a deposit.
The card charges a high annual fee and carries an extremely high variable APR. It could also cost you a ton in other fees, including a one-time activiation fee, monthly servicing fees and authorized user card fees.
Not only does the card carry no annual fee, your minimum required deposit could end up super low (as low as $49 if you qualify, otherwise the minimum will be either $99 or $200), allowing you to build credit without putting down a lot of money up front. You even have a chance at a higher limit if you make your first 5 payments on time.
The card offers no rewards and you'll need to pay off your purchases in full each month to avoid its high APR (26.99% variable).
If you're approved for the unsecured version of the card, you'll have a chance at an initial credit limit of up to $500, which is not bad for someone with a limited or damaged credit history.
There's no guarantee you'll be offered the unsecured version of the card, and if you get the secured version, Celtic Bank could set your deposit requirement (and, accordingly, your credit limit) at as low as $50. Such a low credit ceiling may make it difficult to keep your credit utilization in check, which is a key factor in credit scoring.
The card is an option even if you have bad credit, offering an initial credit limit of up to $300 with no security deposit required. Plus, you can get an approval decision in as little as 60 seconds — no waiting around for days only to be denied.
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.
Since no credit check is required, you can apply for the card without hurting your credit score. Even better, the card's annual fee ($35) and APR (19.14% variable) are both relatively low for a credit-building card.
You'll have to put down a security deposit of between $200 and $3,000, which may be more than you want to tie up at one time. And while the card's fees are reasonable overall, you'll have to watch out for the inactive account fee of $10 per month that applies if you don't have any activity on your account for a year.
Credit Card | Best for | Annual Fee | Deposit Requirement |
---|---|---|---|
Credit One Bank® Visa® Credit Card | Building credit | $0-$99 | $0 |
Indigo® Platinum Mastercard® | No security deposit | See terms* | $0 |
Credit One Bank® Unsecured Visa® with Cash Back Rewards | Cash back | $0-$99 | $0 |
Milestone® Gold Mastercard® | Quick prequalification | See terms* | See terms* |
Discover it® Secured | Balance transfer | $0 | $200-$2500 |
Total Visa® Unsecured Credit Card | Unsecured card | See terms* | $0 |
Capital One® Secured Mastercard® | No annual fee | $0 | $49-$200 |
Surge Mastercard Credit Card | No credit history | See terms* | $0 |
First Access Visa® Credit Card | Instant approval | See terms* | $0 |
OpenSky® Secured Visa® Credit Card | No credit check | $35 | $200-$3,000 |
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.
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.
Credit bureau Experian studied data from scoring model FICO and found that 16% of consumers have bad credit. More than a third of the population has what lenders call a subprime score, which includes the fair and poor categories. At the other end, Americans with exceptional scores make up 20% of the population.
But what do those scores mean for you? Here, we look at the percentage of people with each scoring range and what that score means for them.
Credit score | Rating | % of people | Impact |
---|---|---|---|
300-579 | Poor | 16% | Credit applicants may be required to pay a fee or deposit, and applicants with this rating may not be approved for credit at all. |
580-669 | Fair | 18% | Applicants with scores in this range are considered to be subprime borrowers. |
670-739 | Good | 21% | Only 8% of applicants in this score range are likely to become seriously delinquent in the future. |
740-799 | Very good | 25% | Applicants with scores here are likely to receive better than average rates from lenders. |
800-850 | Exceptional | 20% | Applicants with scores in this range are at the top of the list for the best rates from lenders. |
If you have bad, thin or no credit, don't despair. There is a card for pretty much every circumstance, from great credit to none. You just need to make sure you apply for the right card for your credit.
Credit cards for bad credit have a number of features that mimic the cards reserved for consumers with excellent credit. But they also have features and downsides tailored to the consumers whose credit may not be their best.
Here's what to look for:
Bad credit doesn't have to dog you forever. In fact, cards that accept consumers in the "bad" category can help you build your credit within months. Two different types of "bad credit" cards are secured cards and unsecured cards.
Secured cards are credit cards that require a refundable deposit, usually the same amount as your credit limit. Perhaps the best known type of card for people with bad credit, they are an excellent way to build credit, provided the card issuer reports your good credit habits to the 3 major credit bureaus, TransUnion, Experian and Equifax. It typically works like this: You pay a refundable deposit, say $200, then you are allowed to borrow off of that amount on your card. Some cards require you to have a bank account.
As Ted Rossman explains, "This is similar to a debit card, but better because it will report to the credit bureaus and help improve your credit history (as long as you pay on time). You can use the secured card to make purchases in-person and online, in some cases even earning rewards. 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."
Card | Credit Needed | Annual Fee |
---|---|---|
Capital One Secured Mastercard | Limited/Bad Credit | $0 |
Discover it Secured | Limited/Bad Credit | $0 |
First Progress Platinum Prestige Mastercard Secured Credit Card | Bad Credit | $49 |
OpenSky Secured Visa Credit Card | No Credit Check | $35 |
An unsecured credit card is best known as a rewards, travel or cashback card, but in this case, it is a credit-builder card without the required deposit of a secured card. While the credit limit will likely be low, these cards can have small cashback benefits of about 1%.
Card | Credit Needed | Annual Fee |
---|---|---|
Total Visa Unsecured Credit Card | Bad/Fair Credit | See terms* |
Credit One Bank Unsecured Visa with Cash Back Rewards | Bad Credit | $0-$99 |
Credit One Bank Unsecured Visa with Free Credit Score Tracking | Bad Credit | $0-$99 |
Before you go any further, keep in mind that when you have poor or bad credit, your credit product options are severely limited. Even if you could scrape through and land a card for better credit, if you have a bad track record with your finances, there are cards you'll want to avoid:
You actually have more credit scores than fingers and toes, but no need to worry. There are more than a dozen credit scores for each credit bureau, many for different industries, such as auto, mortgage and credit cards. But the scores you'll want to worry about for now are the consumer versions available to you through FICO and VantageScore.
The most valuable aspect of the FICO scoring model, the model most used by lenders, is payment history, making up 35% of your score. The same is true of VantageScore. Here is what is in your score and some tips for handling your card:
You actually have more credit scores than fingers and toes, but no need to worry. There are more than a dozen credit scores for each credit bureau, many for different industries, such as auto, mortgage and credit cards. But the scores you'll want to worry about for now are the consumer versions available to you through FICO and VantageScore.
The most valuable aspect of the FICO scoring model, the model most used by lenders, is payment history, making up 35% of your score. The same is true of VantageScore. That's why it's so important that you pay your bills on time each month. Here is what the scoring models care about:
Credit bureau TransUnion found that a surprising number of consumers misunderstand what is used to generate their credit reports and scores. From marital status to income to whether you have kids, Americans wrongly think that their credit data are influenced by characteristics that have little to do with financial health. Here are 6 myths TransUnion discovered in its study:
You can access the scores through the credit bureau and the scoring model for a fee. FICO charges about $20 for each score. Some third-party companies, such as credit card issuers like Capital One and Discover, might provide your score for free.
You are legally allowed to access each report for free once a year on AnnualCreditReport.com. Some credit experts recommend that you pull one of your reports every 4 months, staggering the requests.
The AnnualCreditReport.com portal will ask for personal data, such as your birthdate and your social security number, ask you to choose which credit bureau's report you want, then ask you a series of detailed questions only you would know, such as payment amounts for past loans, past addresses and other information. It helps to have this information handy when you pull a report. If you answer incorrectly, you may be shut out of the system for that bureau, and you may have to apply by snail mail.
So, you picked out a card, you did your research, yet you were denied. What to do?
Actually, there's not a lot of guesswork here, because issuers are required by law to send you an adverse action notice to explain why you were denied a card.
Here are some reasons why you might be denied and what you can do about them:
Too much debt – This one's pretty straightforward – your balances are too high. Before applying for another card, establish a budget and pay more than the minimum each month to pay down your debt.
Limited credit history – This is easy to fix. Simply wait a couple of months, then apply for a secured card designed for credit building. Within months, your score will improve and you'll have on-time payments under your belt.
Low income – You may have overshot. Next time, try a card that is not a premium product, but has the features you are looking for.
Too many applications – Went a little crazy? Here's what to do: Take a break from applying for cards for several months and focus on building your credit with a credit-builder loan. Then, when you reapply, make sure it's a card you are reasonably sure you will get.
Too young – The Credit CARD Act of 2009 requires people under 21 to have an independent source of income to get a card, but you can be an authorized user and build credit. Just make sure the holder of the account is responsible with the account and pays on time and in full each month.
Negative information on reports – Late payments or judgments, such as bankruptcies, take time to drop off your reports, but know that the older the negative activity, the less important it is. If you are paying on time and in full going forward, that will help your credit tremendously.
Score too low – If the issue is your credit score, you can look at a credit-builder loan at your credit union. About one in five credit unions offer credit-builder loans. These loans are offered a number of ways: For example, there are unsecured credit-builder loans that provide a lump sum upfront that can be used for an emergency expense. With another type, the loan proceeds are held by the lender until the total amount is paid.
Laura is an editor and writer at CreditCards.com. She has written extensively on all things credit cards and works to bring you the most up-to-date analysis and advice. Laura's work has been cited in such publications as the New York Times and Associated Press. You can reach her by e-mail at laura.mohammad@creditcards.com and on Twitter @creditcards_lm.
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