Your options for credit cards may be limited if you have fair or bad credit (usually a credit score below 580). Most cards with attractive bonuses and benefits, such as travel rewards programmes, are only available to those with good to exceptional credit. Nevertheless, there are Low Credit Line Credit Cards credit cards available.
Secured cards are among the greatest credit cards for people with bad credit. In addition to requiring a security deposit as collateral for the credit line on your card, these cards typically have lower costs than unsecured credit cards for people with terrible credit. Your credit score might increase if you use your card wisely.
The Top 8 Credit Cards for People with Bad Credit in June 2023
Secured Discover it Credit Card
$200 minimum down payment
Limit of credit: $200 to $2,500
Why this card was chosen: With a $0 annual fee, credit bureau reporting, and cash back on every transaction, the Discover it Secured Credit Card Low Credit Line Credit Cards is everything you could ask for in a card for people with bad or low credit. Additionally, after seven months, Discover will start reviewing your account on a monthly basis to see if you meet the requirements to receive your deposit back and advance to an unsecured card.
Pros and disadvantages
- Possibility of progressing to an unsecured card
- No yearly charge
- makes money back
- High Variable APR of 27.99%
- The maximum credit limit is modest.
- initial security deposit is necessary
Credit Card from AvantCard
Minimum down payment: nothing
Limit of credit: $300 to $2,000
Why we chose this card: If you want to build your credit while using a card that doesn’t need a security deposit, the AvantCard Credit Card is a good choice.
Pros and disadvantages
- creating a credit history
- No money down is needed
- No foreign exchange commission
- $59 for each year
- High variable APR of 29.99%
- does not produce incentives
- Not accessible in every state
Secured Visa Credit Card from OpenSky
$200 minimum down payment
$200 to $3,000 in available credit
Why this card was chosen: If you’re concerned that your credit is too bad to get approved even for a secured card, the OpenSky® Secured Visa® Credit Card might be your best option as it doesn’t need a credit check when you apply.
Pros and disadvantages
- creating a credit history
- There will be no credit check.
- a reasonable APR of 22.39% (variable)
- $35 per year
- does not produce incentives
Secured Amazon Card
Deposit requirement: $100
Limit of credit: $100 to $1,000
The Amazon Secured Card features a lower minimum deposit requirement than many secured cards, which can be useful if you’re having trouble coming up with a $200 or $300 deposit. Additionally, after using this card properly for a year, you could be eligible to upgrade to an unsecured card.
Pros and disadvantages
- Possibility of progressing to an unsecured card
- No yearly charge
- 10.00% non-variable low APR
- can only be used to make purchases from Amazon
- Without Amazon Prime, there is no cashback.
Secured Discover it® Credit Card
$200 minimum down payment
Limit of credit: $200 to $2,500
The Discover it® Secured Credit Card is one of the few cards designed for people with bad or restricted credit that offers an introductory APR on balance transfers, which is why we chose it.
Pros and disadvantages
- No yearly charge
- Possibility of progressing to an unsecured card
- Non-punitive APR
- First late payment is free (late fees thereafter are $41)
- Fee for balance transfers
- does not offer a period during which balance transfers are interest-free
- Greater APR
- calls for a security deposit
Platinum Secured Credit Card from Capital One
Minimum down payment: $49. 99, $200
$200 minimum credit limit; see terms for maximum credit limit
Why we chose this card: A secured credit card often requires you to pay a deposit equal to the credit limit you want. However, with a $49, $99, or $200 deposit, the Capital One Platinum Secured Credit Card offers the opportunity to receive a $200 beginning credit limit. Please be aware that receiving the smaller deposits is not a certain.
Pros and disadvantages
- Possibility of progressing to an unsecured card
- A minimum deposit of $49, $99, or $200 is possible.
- No yearly charge
Platinum Secured Credit Card from Capital One
Minimum down payment: $49. 99, $200
$200 minimum credit limit; see terms for maximum credit limit
Why we chose this card: A secured credit card often requires you to pay a deposit equal to the credit limit you want. However, with a $49, $99, or $200 deposit, the Capital One Platinum Secured Credit Card offers the opportunity to receive a $200 beginning credit limit. Please be aware that receiving the smaller deposits is not a certain.
Pros and disadvantages
- Possibility of progressing to an unsecured card
- A minimum deposit of $49, $99, or $200 is possible.
- No yearly charge
- High (varying) APR of 29.99%
- does not produce incentives
- initial security deposit is necessary
- Lower than average initial credit limits
Card Credit Petal 1
Minimum down payment: nothing
Credit limits range from $300 to $5,000.
Why we chose this card: The Petal® 1 No Annual Fee Visa® Credit Card can be a suitable choice if you prefer to utilise your “Cash Score” rather than your credit score to determine your eligibility.
Pros and disadvantages
- offers incentives for certain purchases
- No yearly charge
- Available high credit limit
- programme of limited incentives
- penalties for late and returned payments
- high rate of interest
Secured credit card with cash rewards
Deposit requirement: $1,000
Minimum credit limit of $1,000
Why we chose this card: The Business Advantage Unlimited Cash Rewards Secured credit card is one of the most straightforward cards out of the few secured credit cards for businesses that are available. Its flat rewards rate and $0 annual fee make it simple to accumulate rewards on business expenditures while establishing credit. Additionally, Bank of America will automatically assess your account to see whether you qualify for an unsecured credit card.
- programme of limited incentives
- penalties for late and returned payments
- high rate of interest
Secured credit card with cash rewards
Deposit requirement: $1,000
Minimum credit limit of $1,000
Why we chose this card: The Business Advantage Unlimited Cash Rewards Secured credit card is one of the most straightforward cards out of the few secured credit cards for businesses that are available. Its flat rewards rate and $0 annual fee make it simple to accumulate rewards on business expenditures while establishing credit. Additionally, Bank of America will automatically assess your account to see whether you qualify for an unsecured credit card.
Pros and disadvantages
- No yearly charge
- a secured credit card with a high minimum credit limit
- Transitions to unsecured cards are possible
- The minimal deposit amount is high.
- No enhanced rewards for commercial purchases
Credit Card with Secured Cash Rewards
$200 minimum down payment
$200 minimum credit limit; see terms for maximum credit limit
Why this card was chosen: On regular transactions, the Capital One Quicksilver Secured Cash Rewards Credit Card provides a straightforward cash back return. Cardholders receive 1.5% Cash Back on all daily purchases and 5% Cash Back when they use Capital One Travel to book hotels and rental vehicles (conditions apply).
Pros and disadvantages
- opportunity to move up to an unsecured card
- No yearly charge
- makes money back
- High (varying) APR of 29.99%
- No welcome bonus
- No categories for bonus earnings
How to compare credit cards for those with terrible credit
The majority of negative credit credit cards have hefty APRs and/or annual fees. Due to the fact that so much of your monthly payment is spent on interest or other fees, it may be challenging to pay down your balance. One reason to search for a credit card with a low interest rate and/or no annual fee is because of this. To assist certain you’ll qualify, you should also review the card’s recommended credit before applying. Additionally advantageous is a card with a rewards programme or welcome incentive.
A low credit score: what is it?
The FICO Score, which ranges from 300 to 850, is the credit scoring system that most lenders use to assess your credit rating. A negative credit score is defined as one with a FICO score below 580. VantageScore, which likewise spans from 300 to 850, is another credit score algorithm you can come across. On the VantageScore scale, a score below 600 is regarded as unsatisfactory.
Methodology
We avoided any cards that slap cardholders with confusing conditions and high fees when choosing the best credit cards for terrible credit. Instead, we chose cards that are available to those with bad credit histories.
The majority of the credit cards on this list don’t have annual fees, and the ones that do sometimes provide enough value to justify the cost.
The cards on this list all report activity to the credit agencies, so using them properly will raise your credit score.
