Best Second Chance Credit Cards

The best second chance credit card companies are Continental Finance/Genesis Financial Solutions and First Progress.

Here are a few cards they offer for people with bad credit who made some financial mistakes in the past:

• Reflex Mastercard
• Milestone Mastercard
• Indigo Mastercard
• Surge Mastercard
• First Progress Platinum Elite Mastercard Secured
• First Progress Platinum Prestige Mastercard Secured
• First Progress Platinum Select Mastercard Secured

Keep in mind that secured credit cards are always cheaper and have the highest approval odds. That's why they're considered the best second chance cards overall.

The best second chance credit card with no security deposit is the Credit One Bank® Platinum Visa® for Rebuilding Credit. This credit card is good for a second chance because it accepts applicants with bad credit and offers 1% on purchases like gas, groceries, mobile phone service, internet, and cable. It’s less expensive than similar cards, too, charging an annual fee of $75 for the first year and $99 after that. The card doesn’t have a monthly fee, or any one-time fee associated with opening an account.

4 Second Chance Credit Cards with No Security Deposit

Applying for a second chance credit card is a good way to build your credit over time, as long as you pay the bills on time. WalletHub’s guide on paying your credit card can help you make the most of your second chance, as can keeping track of your credit score.

The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. Some even give rewards of 1% or more. To help people with no credit or bad credit maximize their odds of approval for a credit card, WalletHub’s editors compared the approval requirements for more than 1,500 credit card offers, along with their fees, rates and rewards.

Easiest Credit Cards to Get Approved For

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. 

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The best last-chance unsecured credit card is the Indigo® Mastercard® for Less than Perfect Credit because it allows people with bad credit to rebuild their score and offers an annual fee of $0 - $99. The Indigo Credit Card also has a 24.9% APR, which is comparable to or better than what other last-chance unsecured cards charge. Additionally, the offer doesn’t include a monthly fee, making it a bit more cost-effective than some of the other credit cards for rebuilding bad credit.  

In general, last-chance unsecured credit cards are best for people who need access to a line of credit, don’t have the money for a deposit, and want to rebuild damaged credit. On the other hand, people who mainly want to rebuild their credit should consider secured credit cards because they typically have lower fees. However, you typically can’t borrow with a secured card since your spending limit is usually equal to the amount you pay as a security deposit.

Best Last-Chance Unsecured Credit Cards

While pretty much any last-chance credit card can help you build your credit back up, your specific situation can change whether you want to prioritize cards based on their monthly fees, upfront costs, or APR. Whichever card you decide to get, use it responsibly by paying the monthly bills on time and keeping your credit utilization as low as possible. By doing so, you will help improve your credit, and you can track your progress for free on WalletHub.

The best way to get a $500 credit card limit with bad credit is to open a secured credit card account and put down a $500 security deposit. A secured card’s credit limit is generally equal to the amount of the deposit. Most secured cards require a refundable deposit of at least $200-$300. A bad credit score will make it difficult to get a $500 credit card limit without placing a $500 deposit.

Ways to get a $500 credit card limit with bad credit:

• Get an unsecured credit card: An unsecured credit card for bad credit could give you a $500 credit limit, but it depends on just how damaged your credit is. Your income, debts and overall ability to make credit card payments are also crucial factors that determine your credit limit. Like most unsecured cards for bad credit, the Credit One Visa starts with a $300+ credit limit. But it’s not all yours to spend right away, as you’ll owe an annual fee of $75 intro 1st yr, $99 after. Many other unsecured credit cards for bad credit charge one-time processing fees and monthly maintenance fees, which further reduce your spending power.
• Get a secured credit card: Unlike unsecured cards for bad credit, most secured cards, including Bank of America Custom Cash Secured Card and the U.S. Bank Cash+® Visa® Secured Card, have $0 annual fees. And the deposit is fully refundable when you close the account in good standing. As you build good credit, you may eligible for a credit limit increase without an additional deposit. In some cases, you’ll be allowed to graduate to an unsecured card with better terms and no fees.
• Alternatives: Another way to get a $500 credit card limit with bad credit is to become an authorized user. When you sign on as an authorized user on someone else’s credit card, you’ll share the account’s credit limit while you rebuild your credit history. Missed payments on the account can have a negative effect on the credit scores of both the primary cardholder and the authorized user. But as an authorized user, you have the right to dispute negative information to get it removed from your credit report.

Once you get approved, you can also look at ways to increase your credit limit. After several months of responsible credit card use, you can request a higher credit limit yourself, or you might even be offered an automatic increase by the issuer. In addition, most secured cards also allow you to add to your refundable security deposit.

Of course! If you’ve been turned down for a regular checking account but need access to traditional banking services, a second chance checking is a great option. Prepaid cards are another option, offering all of the features and functionality of a checking account/debit card combo – just without the physical checkbook. You can compare our picks here.

With this said, it’s important to mention that checking accounts and prepaid cards will not help you rebuild your credit. So in addition to a checking account or prepaid card, we suggest getting a secured credit card to help rebuild your credit. You can compare the best and apply for your favorite here. And if you want to keep track of your credit score and get credit improvement tips​​​​​​​, you can do it for free on WalletHub.

Self Lender (now known as Self) is not necessarily better than a second-chance credit card. Self offers credit-builder loans that help people with low scores improve their credit standing. Borrowers pay money into a CD every month, and then get access to that money at the end, but they're charged fees and interest.

With a second-chance credit card, you may have the opportunity to get a card with a $0 annual fee and can avoid interest if you always pay in full. Plus, a credit card helps you build credit indefinitely, while a credit-builder loan from Self is temporary.