The best new credit card for bad credit is the Capital One Quicksilver Secured Cash Rewards Credit Card because it offers 1.5% cash back, with no limit on how much you can earn. Launched in July 2021, the card also comes with a $0 annual fee and requires a security deposit of at least $200 to open an account.
As you might expect, the best new credit cards for bad credit are mostly secured cards. That’s because secured cards typically charge lower fees and are often easier to get than unsecured cards designed for bad credit. Plus, secured cards report account activity to the credit bureaus every month – the same as unsecured cards.
However, if you’re in need of emergency cash, you’ll have to shop around for the least expensive unsecured option. If you need a starting point, our editors’ picks for the best credit cards for bad credit can help narrow your search.
The best high limit credit card for bad credit is the Bank of America® Customized Cash Rewards Secured Credit Card ($200+ limit). “High limits” for bad credit will be very different from high limits for better credit scores, though. Most people with high credit scores looking for high-limit credit cards want $10,000+. That’s not going to be possible with credit cards for bad credit, unless you place a deposit of $10,000+ too. … read full answer
You can aim for a limit of a few hundred dollars with poor credit. But just getting approved usually is the biggest priority for people with bad scores.
The Bank of America Custom Cash Secured Card minimum credit limit is $200+. However, this is a secured credit card, so you need to put down a deposit of at least $200, which equals your credit limit. The card offers 1 - 3% cash back on purchases and has a $0 annual fee.
The Surge Credit Card credit limit is $300-$1,000. The Surge Credit Card's potential for a high starting credit limit is perhaps its most appealing feature. However, it all depends on your overall creditworthiness when you apply. Plus, cardholders have the opportunity to double their credit limit after 6 on-time minimum monthly payments. This card does not offer rewards.
The Fortiva Cash Card offers a credit limit of $350-$1,000. It is an unsecured credit card that is available to people with bad credit, and it gives 1 - 3% cash back on purchases. However, it also has a high annual fee.
The Chime Credit Card credit limit is $200-$10,000. Your spending limit equals the amount of your deposit.
With secured cards, you always have to put down a security deposit. This deposit then acts as your credit line. Secured credit cards are a popular choice for individuals with bad credit since it’s easy to get approved. In addition to easier approval, secured cards usually have lower fees as well.
In general, you likely won’t get a very high credit limit with bad credit. However, these cards are a great place to start and you can always request a credit limit increase once you’ve had your account open for at least six months.
People in search of credit cards for bad credit with no processing fees have even more choices when they consider secured credit cards. For example, you’ll have to place a refundable deposit to get the Capital One Platinum Secured Credit Card, but it doesn’t charge an annual fee or a processing fee.
Some of the Best Credit Cards for Bad Credit with No Processing Fees:
If you’re worried about keeping costs down, try to get a credit card with no processing fee, no annual fee, and no monthly fee. You should try to pay your bill in full every month, too. Even the best cards for bad credit have really high interest rates.
The best secured credit card for bad credit is Discover it® Secured Credit Card because it has a $0 annual fee, rewards you with 1 - 2% cash back on purchases, doubles the rewards you’ve earned after the first year, and accepts people with bad credit. The Discover it Secured Credit Card’s main approval requirements are being 18+ years old and having enough income to afford monthly bill payments, plus a refundable security deposit of $200 or more.… read full answer
Most secured credit cards are open to applicants with bad credit. The more lenient approval requirements are due to the fact that your security deposit will act as collateral for your credit limit. There are several secured credit cards that people with bad credit might want to consider.
Best Secured Credit Cards for Bad Credit:
Best Overall:Discover it® Secured Credit Card$0 annual fee. Earn 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases. Minimum deposit of $200.
Low Deposit:Capital One Platinum Secured Credit Card$0 annual fee. Minimum deposit of $49, $99 or $200 (depending on factors such as income, debt, and creditworthiness) in exchange for a starting credit line of $200.
Cash Back:U.S. Bank Cash+® Visa® Secured Card$0 annual fee. Earn 5% cash back on two categories of your choice (up to $2,000 each quarter), 5% back on prepaid air, hotel and car reservations booked in the Rewards Travel Center, 2% back on your choice of one everyday category (like gas stations, EV charging stations, grocery stores or restaurants) and 1% back on all other purchases. Minimum deposit of $300.
In general, secured credit cards are the best type of credit card for people with bad credit. Secured cards offer the highest approval odds of any credit cards, and they tend to be a lot cheaper in the long run than unsecured cards for bad credit.
You just have to make sure to pay your bill on time and preferably in full, every month. If you do that, your credit should steadily improve. And that should help you qualify for a credit card upgrade sooner than you might think.
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