Updated: Dec 13, 2024

When you’re working to improve your credit score, finding the right credit card can make all the difference. Consider options that not only provide access to credit but also offer a clear path to financial recovery, helping you rebuild your credit history one responsible purchase at a time.

Rebuilding credit can feel overwhelming, but it’s entirely possible with the right tools. One of the best ways to start is by using a credit card designed for people with bad or limited credit. These credit cards are created to help you improve your credit score by building a positive payment history and demonstrating responsible credit use. In this article, we’ll explore some of the top credit cards for bad credit and explain how they can aid in your financial recovery.

1. Best Secured Card for Building Credit: Discover it® Secured Credit Card

Secured credit cards are an excellent starting point for those with bad credit, and the Discover it® Secured Credit Card is one of the best available. It requires a refundable security deposit, which typically becomes your credit limit, but it offers more than just a way to rebuild your credit—it also provides rewards and the opportunity to upgrade to an unsecured card.

Key Benefits:

• 2% cash back on up to $1,000 spent at gas stations and restaurants each quarter.
• 1% cash back on all other purchases.
• Discover automatically reviews your account after seven months to see if you qualify to upgrade to an unsecured card and get your deposit back.
• No annual fee, so every dollar you spend goes toward improving your credit.

This card reports to all three major credit bureaus—Experian, Equifax, and TransUnion—ensuring that your responsible card usage positively impacts your credit score. The combination of rewards and the potential to graduate to an unsecured card makes the Discover it® Secured Credit Card an ideal choice for rebuilding credit.

2. Best for No Credit Check: OpenSky® Secured Visa® Credit Card

If you’ve been denied credit due to your score, the OpenSky® Secured Visa® Credit Card may be the solution. Unlike most credit cards, OpenSky doesn’t require a credit check to approve your application, making it accessible for individuals with very poor credit.

Key Benefits:

• No credit check during the application process, so you won’t be penalized for applying.
• Reports to all three major credit bureaus, helping you build a positive credit history.
• Flexible security deposit (as low as $200) that sets your credit limit.

While this card has an annual fee of $35, the lack of a credit check makes it one of the most accessible options for people who have struggled to get approved elsewhere. With consistent use and on-time payments, it can help you boost your credit score over time.

3. Best Unsecured Card for Bad Credit: Credit One Bank® Platinum Visa®

If you prefer not to put down a deposit, the Credit One Bank® Platinum Visa® is an unsecured card designed specifically for people with poor credit. While it has an annual fee, the card offers rewards on certain purchases and is a solid option for those who don’t want to tie up money in a security deposit.

Key Benefits:

• 1% cash back on eligible purchases like gas, groceries, and mobile phone services.
• Potential for credit line increases with responsible use.
• Reports to all three major credit bureaus, helping you improve your credit score.

The Credit One Bank® Platinum Visa® is a good option if you’re looking for an unsecured card that provides rewards and opportunities for credit limit increases. It’s designed to help people with bad credit improve their financial standing, though it’s important to note that the card does have fees, so make sure you understand the terms before applying.

4. Best for Low Deposits: Capital One Platinum Secured Credit Card

For those who want the benefits of a secured credit card but don’t have much to put down as a deposit, the Capital One Platinum Secured Credit Card offers a low initial deposit requirement, making it easier to get started on your credit-building journey.

Key Benefits:

• Low security deposit options—starting as low as $49—based on your creditworthiness.
• The potential to receive a higher credit limit after making your first five monthly payments on time.
• No annual fee, so you can focus on improving your credit without worrying about added costs.

This card is particularly attractive because of its flexible deposit options and the opportunity to increase your credit limit relatively quickly. By paying on time and keeping your balance low, you’ll not only rebuild your credit but also open the door to better credit products in the future.

5. Best for Credit Monitoring: Mission Lane Visa® Credit Card

The Mission Lane Visa® Credit Card is designed for people who are serious about rebuilding their credit and want tools to help them monitor their progress. It’s an unsecured card, meaning no deposit is required, and it offers features to help users track their credit improvement.

Key Benefits:

• No security deposit required, making it more accessible for individuals with limited funds.
• Access to credit-building tools and regular credit score updates to track your progress.
• Reports to all three major credit bureaus.

While this card has an annual fee, its credit monitoring features make it an excellent choice for people who want to stay on top of their credit recovery journey. The Mission Lane Visa® Credit Card provides both a way to rebuild your credit and the tools to ensure you stay on track.

6. Best for Rewards: Petal® 1 “No Annual Fee” Visa® Credit Card

The Petal® 1 “No Annual Fee” Visa® Credit Card is another unsecured option, and it’s designed for individuals with little or no credit history. What makes it unique is that it evaluates your application based on factors beyond your credit score, such as your banking history, making it accessible for those who might not qualify for traditional cards. It also offers cash-back rewards, a rarity for cards aimed at rebuilding credit.

Key Benefits:

• Earn 2% to 10% cash back at select merchants.
• No annual fee or security deposit, making it a budget-friendly option.
• The card uses your banking history (not just your credit score) to determine eligibility, so it’s a great option for people with limited or bad credit.

This card is perfect for those just starting to build or rebuild their credit, as it offers rewards and no annual fee. Plus, it reports to all three credit bureaus, helping you improve your credit score over time with responsible use.

7. Best for Graduating to Unsecured: Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card is a great option for those with fair credit who want to earn rewards while rebuilding their credit score. Although it has an annual fee, the card offers 1.5% cash back on all purchases, making it one of the few cards for bad credit that also provides rewards.

Key Benefits:

• Earn 1.5% cash back on every purchase, every day.
• Be automatically considered for a higher credit line after six months of responsible use.
• No foreign transaction fees, so it’s a good option for international travelers.

While the card does come with a $39 annual fee, the ability to earn cash back on all your purchases makes it a standout option for those who want to rebuild their credit while also getting rewards. The opportunity to increase your credit line after six months is another big advantage.

Tips for Using Credit Cards to Rebuild Your Credit

No matter which card you choose, rebuilding credit takes time and discipline. Here are a few tips to help you make the most of your credit-building journey:

• Pay on time, every time.
  Payment history makes up 35% of your credit score, so paying your bill on time is the most important thing you can do to improve your score.

• Keep your balance low.
  Your credit utilization ratio (the amount you owe relative to your credit limit) plays a major role in your credit score. Aim to use no more than 30% of your available credit to boost your score.

• Monitor your credit score.
  Many credit cards offer free access to your credit score, so take advantage of this feature to track your progress. Regularly monitoring your credit can also help you spot any errors or fraudulent activity.

• Be patient.
  Rebuilding credit takes time. Focus on using your credit card responsibly, and over time, you’ll see your score improve.

Conclusion

Credit cards for bad credit are designed to help you rebuild your financial reputation. Whether you choose a secured card with a low deposit or an unsecured card with rewards, the key is to use your card responsibly and make on-time payments. Over time, these actions will help you increase your credit score and unlock better financial opportunities.