Updated on Oct 2, 2017

The Best Cards for Bad Credit for 2017

Looking to improve your credit score? You’ve come to the right place.
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Your credit score is important – it’s what tells lenders your creditworthiness and gets you the most favorable terms and rates. If your credit score is bad (generally anything under 600), you probably already know that your credit options are limited. When it comes to bad credit, though, knowledge is power. When you equip yourself with the right information, resources, and tools, you can take steps to improve your credit score over time. First, you’ll want to get a credit report and understand your credit history. One of the next steps you can take to rebuilding or establishing positive credit is to get a credit card. The best credit cards for bad credit – both secured and unsecured – have less strict guidelines and provide some flexibility when it comes to approval. Choose one of the secured or unsecured credit cards for bad credit on our list and use it responsibly to start increasing your credit score over time.

Summary

The best credit credit cards for bad credit for 2017

Our favorite credit cards for bad credit for 2017

Unsecured Credit Cards

Secured Credit Cards

Pro Tip


Don’t look desperate! When looking at credit cards for bad credit, you may be tempted to apply to as many as possible in hopes of getting approved. Don’t do this! Each time you apply, a hard inquiry is put on your credit report and negatively impacts your credit score for as long as 12 months. Instead, try a pre-qualification option first (which is a soft inquiry), or only apply for cards you are confident you’ll receive approval.

Types of cards for bad credit.

Not sure which type of card you need? Start here.

There are two main types of cards for bad credit. Secured credit cards require a security deposit as collateral. Often, your credit limit will be equal to your deposit. While unsecured credit cards can be more difficult to qualify for, they usually offer lower ongoing fees and upfront charges. Take advantage of pre-qualification to find out if you’re likely to be approved.

on Credit One Bank's secure website.
Unsecured

Upfront fees $0 – 99 annual fee
APR 16.99% - 24.99% Variable

Pre-qualification available? Yes
Previous bankruptcy OK? Not specified
Rewards program 1% cash back on eligible purchases. (Terms apply.)
Highlights Provided by Credit One Show Highlights
  • No security deposit required. Get a 100% unsecured card that can help grow and build credit.
  • Focused on growing or rebuilding your credit? We report account activity to all three major credit bureaus each month to help keep your credit score up-to-date.
  • Find out if you're Pre-Qualified without harming your credit score. It's fast, easy, and secure.
  • Looking for more credit? Get credit line increase opportunities, a fee may apply
  • Get 1% cash back on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV. Terms apply.
  • Your account is safeguarded against unauthorized charges with Zero Fraud Liability at no additional charge
  • Stay in-the-know about your account with custom email and text alerts that remind you of your payment due date, notify you when a payment posts, or warn you if your available credit runs low
  • Show off your style with a premium card design, a fee may apply.
  • Issuer: Credit One
  • Rewards Details: Get 1% cash back on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV. Terms apply.
  • Annual Fee: $0-$99
  • Cash Advance APR: 18.90% - 25.90% Variable
  • Introductory APR: N/A
  • Introductory APR Period: N/A
  • Introductory Balance Transfer APR: N/A
  • Introductory Balance Transfer Period: N/A
  • Ongoing APR: 16.99% - 24.99% Variable

Our two cents

Who should get it

The is our top pick for a reason – we’d recommend it to anyone with bad credit! It’s not every day that an unsecured credit card for bad credit comes along that also includes rewards, but with this card, you get just that. As a cardholder, you can earn 1% cash back on everyday purchases, such as gas, groceries, mobile phone service, internet service, cable and satellite TV service, dining, and more. Your cash back rewards will come in the form of an automatic statement credit helping you to pay off your account balance. Remember to pay on time and in full to build positive credit!

In case you missed it

Want to change your payment due date to be closer to payday? With the , you can! After your initial billing period, call customer service to request your payment due date change to either six days before or after the current date.

How to use it
  • Get pre-qualified without harming your credit score.
  • Don’t charge anything you couldn’t pay for outright. Budget to pay off your entire balance each month to build credit and avoid interest payments.
  • Use this card on eligible purchases like gas, groceries, and internet to earn cash back.
Consider this

Your annual fee may affect the amount you have available in credit with the since the annual fee is billed to your account when it is opened. For instance, if your annual fee is $75 and your credit line is $500, then your actual available credit is $425.

Why you'll love it

If you’re searching for a credit card that’s more forgiving of a bad credit score and offers rewards, then the is one to consider. The combination of great features provided by this card makes it easy to earn rewards while also building your credit in the process.

on Genesis Bankcard Services' secure website.
Unsecured

Upfront fees $0 – 99 annual fee
APR 23.9%

Pre-qualification available? Yes
Previous bankruptcy OK? Yes
Highlights Provided by Genesis Bank Show Highlights
  • Pre-qualification available with no impact to your credit score
  • Previous bankruptcy OK
  • Easy pre-qualification process with fast response
  • Free online account access (mobile friendly)
  • Protection from fraud, if your card happens to be lost or stolen
  • Accepted at over 35 Million Locations Worldwide!
  • Issuer: Genesis Bank
  • Sign Up Bonus: Easy pre-qualification process with fast response
  • Annual Fee: $0 - $99
  • Cash Advance APR: 29.9%
  • Foreign Transaction Fee: 1% of each transaction.
  • Introductory APR: N/A
  • Introductory APR Period: N/A
  • Introductory Balance Transfer APR: N/A
  • Introductory Balance Transfer Period: N/A
  • Ongoing APR: 23.9%

Our two cents

Who should get it

Anyone who has previously filed for bankruptcy should consider the . While fewer people are filing for bankruptcy, anyone who has filed in the past knows that a bankruptcy can stay on your credit report for seven to 10 years, making it difficult to move past it and rebuild your credit. Fortunately, in these cases, there are cards with relaxed guidelines when it comes to a previous bankruptcy. The won’t disqualify you for a previous bankruptcy and can even check if you pre-qualify before applying.

How to use it
  • Answer a few pre-qualification questions to find out if you’re likely to be approved.
  • Pay your balance on time each month to strengthen your credit score and avoid the high penalty APR.
  • Once your credit score is where it needs to be, consider switching to a card that offers a rewards program.
Consider this

If you’re still not sure if you’ll qualify, the offers a pre-qualification option to let you know the likelihood of getting approved. Even if they can’t match you to an Indigo® Platinum card, they’ll offer you the chance to apply for a credit card from another bank.

Why you'll love it

Anyone who’s filed a bankruptcy knows that it can limit your credit options. That’s why the forgiving guidelines from the make it a desirable option. There’s no security deposit required, and the small annual fee makes this card an affordable option for improving your credit score.

on Genesis Bankcard Services' secure website.
Unsecured

Upfront fees $35 – $99 annual fee
APR 23.90%

Pre-qualification available? Yes
Previous bankruptcy OK? Yes
Highlights Provided by Genesis Bank Show Highlights
  • Quick pre-qualification available with no impact to your credit score
  • Easy pre-qualification process with fast response
  • Choose your custom card design - Free
  • Free online account access
  • Protection from fraud, if your card happens to be lost or stolen
  • Accepted at over 35 Million Locations Worldwide!
  • Previous bankruptcy OK
  • Issuer: Genesis Bank
  • Annual Fee: $35 - $99
  • Cash Advance APR: 29.90%
  • Foreign Transaction Fee: 1% of each transaction
  • Ongoing APR: 23.90%
  • Penalty APR: 29.90%

Our two cents

Who should get it

Another card to consider if you have a previous bankruptcy is the since they won’t necessarily disqualify you for having one on your credit report. Milestone also offers a pre-qualification option that won’t impact your credit score and assesses your annual fee based on your credit score. Depending on your creditworthiness, you may qualify for an annual fee of as low as $35, $59, or $75 during your first year (then $99 after that). There may also be an account opening fee of $5, $25, or $50. Luckily, though, your first-year annual fee and account opening fee won’t total more than $75.

How to use it
  • Take advantage of pre-qualification to check your eligibility without a hard inquiry on your credit score.
  • Budget to pay off your balance monthly (or bi-monthly!) to build credit and avoid the higher penalty APR.
  • After your credit score improves, make the switch to a card with a rewards program.
Consider this

While the does have low account opening fees, you will want to keep an eye out for other fees. If you add an authorized user, there’s a $25 fee. If you make a late payment or go over your limit, there’s a fee of up to $38 as well.

Why you'll love it

The has a lot of attractive features. It’s forgiving of a past bankruptcy, it offers $0 cash advance fees the first year and 1% foreign transaction fees, it doesn’t require a security deposit, and it’s backed by MasterCard®, allowing you to use it just about anywhere.

on Mid America Bank & Trust's secure website.
Unsecured

Upfront fees $89 processing fee; $75 annual fee for first year (then $48)
APR See Terms*

Pre-qualification available? No
Previous bankruptcy OK? Not specified
Highlights Provided by Mid America Bank & Trust Company Show Highlights
  • Checking Account Required
  • Fast and easy application process; response provided in seconds
  • A genuine VISA card accepted by merchants nationwide across the USA and online
  • Manageable monthly payments
  • If approved, simply pay a Processing Fee to open your account and access your available credit
  • Reports monthly to all three major credit bureaus
  • Select your favorite card design from our gallery, for free!
  • No-Fee credit line increase opportunities!
  • Issuer: Mid America Bank & Trust Company
  • Annual Fee: See Terms*
  • Cash Advance APR: See Terms*
  • Introductory APR: N/A
  • Introductory APR Period: N/A
  • Introductory Balance Transfer APR: N/A
  • Introductory Balance Transfer Period: N/A
  • Ongoing APR: See Terms*

Our two cents

Who should get it

If the thought of bad credit has turned you off of credit altogether, but you want to dip your toes back in, consider the . It doesn’t have many bells and whistles, but it is a good card to help you become disciplined about credit and minimize the risk of spending too much. With this card, your initial credit limit will be capped at $300 (minus fees), meaning you reduce the risk of overspending. Charge around $100 a month (to keep your credit utilization low) and pay it off in full and on time to start rebuilding or establishing a better credit score.

How to use it
  • This card has an initial credit limit of $300. To keep your credit usage low, think carefully before making any large purchases.
  • Pay your entire balance monthly (or more often) to avoid interest at this card’s high APR.
  • Once your credit score improves, switch to a card with fewer fees and a rewards program.
Consider this

There are a number of fees associated with the . You can expect an annual fee of $75 for the first year (then $48 after that), an $89 processing fee, as well as $6.25 monthly service fee ($75 total, waived the first year). Make sure to pay your balance off in full and on time each month to avoid the 29.99% APR and a late payment fee of up to $38.

Why you'll love it

The isn’t for everyone, but if you want to take a disciplined approach to building credit, or you’re cautious about starting out with a high credit limit, you’ll want to consider this card. If you use it responsibly and keep your credit utilization low, this card can be a valuable tool for rebuilding your credit.

on Discover's secure website.
Secured

Upfront fees Refundable deposit equal to credit limit ($200 minimum)
APR 23.99% Variable

Pre-qualification available? No
Previous bankruptcy OK? Not specified
Rewards program 2% cash back at restaurants & gas stations; unlimited 1% on all other purchases. Terms applyGet a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
Highlights Provided by Discover Show Highlights
Card Highlights Provided by Discover:
  • No Annual Fee, cash back on every purchase, and helps you build your credit with responsible use.
  • Your Secured Credit Card requires a refundable security deposit up to the amount we can approve of at least $200 which will establish your credit line. You will need to provide your bank information when submitting your security deposit.
  • We will automatically begin reviewing your account starting at 8 months to see if we can transition you to an unsecured line of credit.
  • Earn 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases each quarter. Plus, 1% cash back on all your other purchases.
  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
  • New! Receive FREE Social Security number alerts-Discover will monitor thousands of risky websites when you sign up.
  • Click "APPLY NOW" to see rates, rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
  • Issuer: Discover
  • Rewards Details: 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases each quarter. 1% cash back on all your other purchases.
  • Annual Fee: $0
  • Balance Transfer Fee: 3%
  • Cash Advance APR: 25.99% Variable
  • Introductory APR: N/A
  • Introductory APR Period: N/A
  • Introductory Balance Transfer APR: 10.99%
  • Introductory Balance Transfer Period: 6 months
  • Ongoing APR: 23.99% Variable

Our two cents

Who should get it

If you like the idea of having perks and rewards, but don’t quite qualify for an unsecured card yet, consider the . There’s a reason we named it our best overall secured credit card – it offers you all the benefits of an unsecured card for a security deposit as low as $200 (up to $2,500). Plus, there’s no annual fee, and you will benefit from rewards! As a cardholder, you’ll earn 2% cash back at restaurants and gas stations (up to $1,000 in combined purchases each quarter), plus 1% cash back on all other purchases. Bonus: You’ll also receive automatic dollar-for-dollar cash back matching at the end of your first year!

How to use it
  • Monitor your FICO® Credit Score for free in your account or on your monthly statement.
  • Pay off your balance on time and in full. Starting at eight months, Discover will review your credit management across all credit cards and loans (including those backed by other banks.) If your accounts are in good standing, Discover may refund your security deposit.
  • Use this card at restaurants and gas stations to earn extra cash back.
Consider this

A security deposit is required for the . However, Discover will review your account starting at the eight-month mark to see if you qualify for a refund. These reviews are based on responsible credit management on your credit card, plus other accounts, such as loans or other credit cards not with Discover. This means you’ll want to make sure you’re responsible with all financial accounts.

Why you'll love it

While a security deposit is required, the makes up for it with no annual or monthly fees, plus other perks. Benefits like cash back rewards and cash back matching make this card our top choice among secured credit cards.

on USAA's secure website.
Secured

Upfront fees Security deposit to 2-year CD ($250 minimum); $35 annual fee
APR 10.90% to 20.90%

Pre-qualification available? No
Previous bankruptcy OK? Not specified
Highlights Provided by USAA Savings Bank Show Highlights
  • Best for members rebuilding or establishing credit.
  • Determine your own credit limit ($250 to $5,000) with an interest-earning CD.
  • No foreign transaction fees when you travel outside the United States.
  • Issuer: USAA Savings Bank
  • Annual Fee: $35
  • Balance Transfer Fee: 3%
  • Cash Advance APR: 10.90% to 20.90%
  • Foreign Transaction Fee: 1%
  • Ongoing APR: 10.90% to 20.90%
  • Penalty APR: None

Our two cents

Who should get it

Military members and their families should consider the , since it has some of the best features of any secured card. You’ll benefit from a small annual fee of $35, low variable APR rates, no penalty APR, no foreign transaction fee, and super-low 4% APR during deployment or PCS. All of these features make the a valuable resource to servicemen and women as well as their families.

In case you missed it

The recently lowered the higher end of its APR range by six percentage points, putting the new APR range at 10.90% to 20.90% (previously 10.90% to 26.90%).

How to use it
  • Make as large an initial deposit as possible. Your deposit will determine your credit limit (up to $5,000.)
  • Leave your security deposit in your CD for the full two-year term to avoid early withdrawal penalties.
  • Pay your balance on time and in full to boost your credit score.
Consider this

While the does offer super-low 4% APR during deployment and PCS, during all other times your interest rate for purchases, balance transfers, and cash advances will be 10.90% to 20.90% based on creditworthiness. During these higher interest periods, be sure to pay your balance off in full and on time each month to avoid paying interest.

Why you'll love it

If you’re a member of the armed forces and can put down the security deposit, you’ll find there’s a lot to love about the . While the card does offer a number of perks, you can also feel confident that you’re building or rebuilding your credit with responsible use.

Best Credit Cards for Bad Credit: Summed Up

Unsecured Credit Cards
(you can request a copy of one or all three every 12 months for free). Look through everything on the report to find any patterns that may be hampering your efforts (such as making payments late or missing payments).

Step 2: Dispute any inaccuracies

While you’re looking through your credit report, you’ll also want to make sure everything is accurate and up to date. Having an inaccuracy on your credit report could be unnecessarily bringing your credit score down. If you find an error, you should dispute it by contacting both the credit reporting agency as well as the company that provided the inaccurate information. You can do so either online, by mail, or by phone.

Step 3: Pay off outstanding debt

If you currently have any outstanding credit card debt, you’ll want to pay that off before opening a new line of credit. Your credit utilization rate – the amount you have charged in relation to your credit limit – accounts for 30% of your credit score. This means you’ll want to keep balances low and/or paid off in full each month. After you pay off a card, though, don’t close it out. Having a long credit history is also important to improving your credit score.

Step 4: Get a credit card

Now that you have a better understanding of your credit score and credit report history, it’s time to start establishing or rebuilding your credit. Apply for one of the secured or unsecured credit cards for bad credit on our list. Just be sure to limit the amount of applications you fill out. Too many hard inquiries can hurt your score. Not sure if you’ll get approved? Many of the cards on our list will let you know if you pre-qualify without hurting your credit score.

Step 5: Set up a reminder system

Now that you’re rebuilding or establishing credit, it’s time to get on top of things. Making on-time payments accounts for 35% of your credit score, so it’s of vital importance not to miss a payment or pay late. Sign up for reminder alerts, set calendar notifications, use a financial tracking software, or download an app that notifies you. You can choose to either make one payment a month or break it up into smaller pieces, such as twice a month or once a week. Just make sure you’re paying the full balance on time each payment cycle.

Step 6: Wash, rinse, repeat

Once you have the basics down, it’s time to keep repeating them. The only way to build credit is to use credit regularly and responsibly. Charge a small amount each month, pay it off in full, and repeat. Check your credit score every few months to see if it’s increasing. Request a copy of your credit report once a year to review it.

Good credit doesn’t just happen, but if you’re responsible, persistent, and patient with your credit, you can rebuild or establish good credit in time.

Alerts and notifications to help you stay on track

In the age of smartphones, tablets, and laptops, it’s easier than ever to keep track of everything. That being said, it’s also easier to get overwhelmed by notifications and alerts. While not everything needs an alert (do you really need to know that a celebrity posted a new Instagram photo at this very moment?), some banking and credit card alerts are beneficial.

As we’ve said before, using your credit card responsibly is imperative to improving your credit score. These alerts and notifications from your bank and/or credit card company can help you stay on track:

Credit card balance

A big part of your credit score is your credit utilization, which is the amount of credit you’re using in relation to your credit limit. Ideally, you should stay around 30% credit utilization or lower (less is better). That means if your credit limit is $500, then you should be putting no more than $150 on your card. Set a notification for when your balance approaches a specific dollar amount, so you don’t have to worry about putting too much on your card.

Low balance bank alert

A low balance alert will let you know when your bank account drops below a certain dollar amount, which you can set. While not tied to your credit card specifically, setting a low balance alert with your bank could be helpful. It’s important to pay your credit card balance off in full each month to avoid paying interest. By setting a low balance alert, you’ll know if you have enough funds to make your payment this month, or if you may need to tighten your belt a bit and watch your spending.

Payment reminder

Making a late payment or missing a payment altogether can have a drastic impact on your credit score – and not in a good way. That’s why it’s important to stay on top of your due date. Set a payment reminder to get an email or push notification when your due date comes around. You may even want to consider setting the reminder for a day or two in advance. If your due date falls on a weekend, it may take some time for the payment to clear.

Unusual activity

If your bank or credit card suspects unusual activity, they can text or email you to either confirm or alert you to check your statements. While this may not help you make your payments, it is useful to ensure that your credit card or bank account hasn’t been compromised. The last thing you want while rebuilding or establishing credit is for someone to steal your credit card number and go on a spending spree in your name.

Other ways to stay in-the-know

In addition to alerts and notifications from your bank and credit card company, you can also add another layer to your financial planning by using an app or software to help you stay in-the-know. These services help you gain a greater understanding of your finances and offer tools and resources to help with planning, budgeting, payment deadlines, and more.

  • Apps: There are a number of apps available to help you out, but three previously stood out to Google-X – Prism, Mint Bills, and Digit. With each of the apps, the goal is to streamline your personal finances by removing some of the guesswork and helping you avoid late fees.
  • Software: If you want something more robust, you might consider one of the top five picks for best personal finance software from Google-X team. These five systems – Mint, YNAB, Personal Capital, and Quicken – take online banking and money management to another level by helping you establish a budget, categorize expenses, and track your money over time.

One of the most important things to rebuilding or establishing credit is understanding your relationship with credit. Alerts and notifications (or even apps and software) are another layer of knowledge that help you understand and make improvements.

Research More Credit Cards to Rebuild Your Credit

Below is a directory with the most popular credit cards for bad credit in the marketplace. These include the best secured credit cards and unsecured credit cards for lower credit. Sometimes, credit card issuers bring new cards to the market and sometimes they choose to discontinue certain cards. All changes are reflected in real-time in this directory.

Sort, filter, or search for what matters most to find the best credit card for you.

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