Credit cards for bad credit in the US may have some of the worst terms for cardholders. Many card issuers don’t offer ‘normal’ credit cards to people with bad credit, and if they do, those cards will come with very high interest rates, penalties and fees which could crush you if you already face financial difficulties. It’s almost impossible to do without a credit card in this day and age. But fret not, because we are here to help you! If you have a bad credit score (below about 640-660), read on to find out which is our best rated credit card for bad credit you can consider getting if you want a card to help improve your credit score and to make life easier for you.
Below, we’ve included our best rated credit cards for bad credit or no credit:
Capital One® Secured MasterCard®. This card issued by Capital One reports automatically to all 3 credit bureaus. This is a real credit card, not a prepaid card. The minimum refundable security deposit is $49, $99 or $200 based on your creditworthiness. Your minimum deposit gives you a $200 credit limit, and you may qualify for an increase based on your creditworthiness and payment history. There is a 22.9% variable APR on purchases and balance transfers. No balance transfer fee. $29 annual fee. Read our review of Capital One® Secured MasterCard® here.
OpenSky Secured Visa Credit Card. This is a great card for anyone with bad credit. One of the reasons is because it reports monthly to the 3 main credit bureaus which is very important for anyone who is looking to build good credit. It has a purchase and balance transfer variable APR of 17.50%. It gives you a credit line of $200-$3000 and you don't need to have a checking account to make deposits. The annual fee is only $29.
PEX Visa® Prepaid Card For Business is great for businesses with bad credit since no credit score is required for approval, but you will be required to have a business checking account. This prepaid card makes it easy for you to control employee spending by approving purchases, allocating funds, and even restricting spending in specific categories. Another perk is that you get 2 months free to try it out and see if it works for your business. After that, there is a monthly fee of $7.50 that is waived any month that your business spends $50,000 or more. There is a $49.95 One-Time Program Account Set-up Fee after your 2 month free trial. No interest charges or overdraft fees.
First Progress Platinum Elite MasterCard® Secured Credit Card. This full-feature First Progress Secured Platinum MasterCard® Credit Card is excellent for people who have bad or no credit because it doesn't require you to have any credit history or minimum credit score to be approved and it helps you build your credit by reporting to all three major credit bureaus every month. You must maintain a security deposit of at least $300 and up to $2000. If you are charged interest, you will be charged no less than $1.50. The variable APR on purchases is 19.99%. It has an annual fee of $29.
First Progress Platinum Prestige MasterCard® Secured Credit Card. You can get approved for this card without having any credit history or minimum credit score. It reports to all three major credit bureaus monthly. This card is secured by your refundable deposit of $300 - $2,000. The minimum interest charge is $1.50. The variable purchase APR is 11.99%. Nationwide Program though not yet available in NY, IA, AR, or WI. It has an annual fee of $44.
First Progress Platinum Select MasterCard® Secured Credit Card. Even if you have bad credit and no credit history you can get approved for this card. Every month it sends a report to all three major credit bureaus which will help build your credit. You must maintain a refundable deposit of no less than $300 and up to $2,000. The minimum interest charge is $1.50. There is a 14.99% variable APR on purchases. The annual fee for this card is $39.
Credit Card for Bad Credit and Prepaid Card Tips
If you would like to build your credit history from scratch or raise your credit score, then we recommend that you apply for Capital One® Secured MasterCard® as it reports monthly to the 3 major credit bureaus in the US. If you pay your bills on time with all your creditors and maintain your account balances below the credit limits, your credit score would improve over time.
Many of these cards also let you check your balance on your phone, as well as receive alerts before your payment is due each month. If you are under 21, you won’t be accepted for a credit card unless you show proof of income that you are capable of repaying any debt you may incur, or if you have a co-signer who agrees to be liable for any debt you may incur.