Apply for Top Credit Cards for Bad Credit
Getting approved for a credit card with bad credit can often feel like a challenge. Fortunately, there are plenty of credit cards out there specifically designed for individuals with low credit scores. These cards can help rebuild your credit history and give you access to the convenience of credit credits with rewards. Below, we'll explore some of the top credit cards for bad credit, and how to apply and what to expect from each card.
Best Credit Card Options for Bad Credit
If you currently have bad credit, consider applying for one of these credit cards. They are some of the best options available for people with low credit scores.
Discover it® Secured Credit Card: Best for Cash-Back Rewards
The Discover It Secured Credit Card is a great option for applicants that are looking for cash-back rewards. Generally, secured credit cards would not offer cash-back rewards for their applicants, which makes this card such a unique and impressive prospect.
Pros
- 2% cash back at gas stations and restaurants and 1% on all other purchases.
- No annual fees.
- At the end of your first year, Discover matches all the cash that you’ve earned back on the year, doubling it.
- Deposit is refundable when the account is closed or transitioned to unsecured.
Cons
- Requires a minimum refundable security deposit of $200.
- Credit limit is tied to your deposit size, meaning you might have a low credit limit.
- Relatively high APR.
- 2% cash-back reward is capped at $1,000 quarterly.
Capital One Platinum Secured Credit Card: Best for Secured Flexibility
The Capital One Platinum Secured Credit Card is an excellent option for individuals looking to rebuild their credit. The card has no annual fees and helps users establish or improve their credit history.
Pros
- Offers refundable security deposits as low as $49 and up to $200.
- Automatic consideration for higher credit limits in as little as six months.
- No annual fee.
Cons
- Very high variable APR.
- Low initial credit limit which might restrict card usage.
- No rewards or cash-back program.
Chime Credit Builder Visa® Credit Card: Best for No Fees & Credit Checks
The Chime Credit Builder Visa® Credit Card is a fee-free card designed to help individuals build credit without a credit check or security deposit. This card is ideal for those seeking a simple, low-risk way to improve their credit.
Pros
- No annual fees, late payment fees or foreign transaction fees.
- No security deposit required.
- No interest fees.
- Spending limit determined by the amount transferred into your Credit Builder account.
Cons
- Requires a Chime Spending Account to apply for the card.
- No rewards or cash-back program.
- Spending limit is tied to the amount deposited into the Credit Builder account.
- No balance carrying allowed.
How to Apply for One of These Credit Cards
After you've decided on the specific credit card you want to apply for, whether it's included in the coverage above or not, there are a few steps that you should follow. The application process on all credit cards will include these general steps:
- Navigate to the website of the creditor offering the credit card.
- Read the respective terms and services for the card.
- Submit required documentation, including proof of income or funds.
- Await the review and approval from the creditor.
- Receive the credit card in the mail and begin spending!
What to Expect When Using a Credit Card for Bad Credit
There are a few things that, regardless of the specific card selected, can be expected when using a credit card designated for applicants with bad credit. You should expect the following variables when using any of the credit cards covered below.
Higher Interest Rates
Credit cards for bad credit often have higher APRs than a standard credit card would. To minimize interest charges, it will be in your best interest to pay the balance in full each month where possible.
Low Credit Limits
Initial credit limits are usually low, often ranging in the low thousands at most. Fortunately, many cards offer the opportunity for credit limit increases after responsible use over time.
Fees
Credit cards for applicants with bad credit will have a significant amount of fees, including annual fees, late fees and various others. Read the initial terms and contract carefully before applying.
Regular Credit Reporting
Virtually every credit card will report your activity to the three major credit bureaus. Timely payments and low credit utilization will significantly improve your credit score over time!
Final Notes
Ultimately, the best credit card for people with bad credit is dependent on your personal situation and preferences. Once you’ve selected the specific credit card that you would like to apply for, be sure to read the terms and conditions of the card closely.
Once you’re comfortable, submit your application for one of these top credit cards for bad credit.
Looking for more options to access credit? Check out our article on the best payday loans.