Best Credit Cards for Poor Credit Scores

If your credit score is low, you might feel out of options. Getting denied loans charged higher interest rates, or struggling to qualify for basic financial products is frustrating. But there’s a way to turn it around—and one of the most effective tools is a credit card designed for people with poor credit.

These cards don’t just give you access to credit. They help you rebuild your credit profile, create a positive payment history, and gain access to better financial products in the future. But not all credit cards for bad credit are created equal. Some are fair and practical. Others are expensive or risky.

What is a Poor Credit Score?

A poor credit score usually means a FICO® score below 580. It reflects your credit history and signals that lenders see you as a high-risk borrower. Poor scores can result from missed payments, defaults, high credit usage, collections, or little credit history.

For example, if you’ve been late on a loan or credit card more than once in the past 12 months or maxed out your cards, your score likely falls into the poor range. Bankruptcy or recent charge-offs will also push your score down. But poor credit isn’t permanent. With consistent, responsible use of a well-chosen credit product, your score can improve in months.

Why Credit Cards Matter for Low Credit Profiles

Many people with poor credit think credit cards will make things worse. In reality, the right card can help you rebuild. Here’s why:

Credit cards report to major credit bureaus every month.
Responsible use shows lenders that you can manage debt.
Paying on time builds your payment history, which is the biggest factor in your score.
Keeping balances low shows that you’re using credit responsibly.

Unlike payday loans or prepaid cards, credit cards—secured or unsecured—help build credit history over time, making them practical tools for financial recovery.

Types of Credit Cards for Poor Credit

Two main types of cards are available if you have poor credit: secured and unsecured.

Secured Credit Cards

Secured cards require a refundable deposit, which acts as your credit limit. If you deposit $300, that becomes your spending limit. The bank holds the deposit in case you don’t pay your bill. These cards are easier to qualify for because they reduce risk for the issuer.

Some secured cards even offer cashback rewards and automatic upgrades to unsecured cards after several months of on-time payments.

Unsecured Credit Cards

Unsecured cards don’t require a deposit. But they often come with higher fees and lower starting limits. These cards are useful if you don’t have cash for a deposit but still want to rebuild your credit. Approval is usually based on your income, recent credit activity, or alternative underwriting.

Key Features to Look For in a Card

When choosing a credit card to rebuild credit, pay close attention to the features. Not every card is worth applying for.

Look for:

No or low annual fee. You shouldn’t have to pay $75+ just to hold the card.
Reports to all 3 credit bureaus. If it doesn’t report to Experian, Equifax, and TransUnion, it won’t help your score.
Reasonable APR. You may not avoid interest entirely, but some cards have better terms than others.
Automatic credit limit reviews. This shows the issuer is open to increasing your limit or upgrading your card.
Deposit flexibility. For secured cards, make sure the deposit is affordable. Some let you build it up over time.
No hard credit check. This is helpful if you’ve been denied recently or just filed for bankruptcy.

How to Improve Approval Odds

To improve your chances of getting approved, follow these steps before applying:

Check your credit reports. Go to AnnualCreditReport.com and review reports from all three bureaus. Look for errors or outdated accounts.
Pay down existing debts. Lower your balances on other cards or loans to improve your credit utilization ratio.
Avoid applying for multiple cards. Space out your applications. Too many inquiries in a short time can hurt your score.
Use pre-qualification tools. Many card issuers offer “soft check” tools to estimate approval odds without impacting your score.
Have verifiable income. You must prove you can afford the monthly payments, even on a small credit line.

Secured vs. Unsecured Credit Cards

Choosing between secured and unsecured cards depends on your budget and recent credit activity.

When a Secured Card Makes Sense

A secured card is often the smarter option if you can afford a refundable deposit between $200 and $300. You’ll likely get:

Lower fees
Easier approval
A chance to upgrade to an unsecured card and get your deposit back

Top picks:

Discover it® Secured Card – $0 annual fee, $200+ deposit, 2% cashback at gas stations and restaurants, 1% on other purchases. Discover matches your first-year rewards. You’ll be reviewed for an upgrade after several months.
Capital One Quicksilver Secured – $0 annual fee, $200 deposit (some may qualify with $49 or $99), 1.5% cash back on every purchase. Easy to upgrade to an unsecured Capital One card.
Chime Credit Builder Visa® – No set deposit; your spending limit is based on what you move into your Chime account. No credit check, no interest, and no annual fee. Reports to all three credit bureaus.
Self Visa® Secured – Starts with a Self credit-builder loan that helps you save for the deposit. There is no hard credit check, and you build installment and revolving credit at once.
OpenSky® Plus Secured Visa – No credit check, no annual fee, and approval for those with serious credit issues. $300 minimum deposit.

When an Unsecured Card is Better

An unsecured card might work if you can’t set aside money for a deposit but can afford a small annual fee.

Good options include:

Petal® 1 Visa – $0 annual fee. Don’t rely on your credit score alone. Look at your bank history and income. Offers cashback at select merchants.
Prosper® Card – There is a $59 annual fee (waived the first year if you use AutoPay). The card offers up to a $3,000 credit limit, and after approval, half of your limit is instantly available in a digital wallet.
Mission Lane® Visa – Annual fee between $0–$59, depending on your credit profile. Earn up to 1.5% cashback and get reviewed for higher limits after seven on-time payments.
Credit One Bank® Platinum Visa – The Annual fee starts at $75. It offers 1% cashback on gas, groceries, and mobile service. However, there are high fees and interest, so only use it if other cards aren’t an option.

How Credit Cards Help Rebuild Credit

Every time you make an on-time payment, your credit score benefits. And the more time you spend managing the card correctly, the more positive history you build.

Here’s how it works:

Payment history makes up 35% of your FICO® score. Paying on time is the most important step.
Credit utilization is the second most important factor. Try to keep balances below 10% of your credit limit.
The length of your credit history improves the longer you keep the account open.
Account mix improves if you have both revolving (credit card) and installment (loan) accounts.

After six months of steady use, you’ll likely see an increase in your score—sometimes by 50 points or more, depending on where you started.

Common Fees and Costs to Watch

Many cards designed for bad credit include hidden costs. If you’re not careful, fees can eat into your credit-building progress.

Here are the main fees to watch for:

Annual fees. Some cards charge $59–$99 to keep the account open.
Monthly maintenance fees. Rare, but some lower-tier cards may charge $5–$10/month.
High APRs. Expect interest rates between 25% and 30%. Pay in full each month to avoid this.
Late fees. It can be as high as $41. Set up automatic payments to avoid them.
Processing or setup fees. Avoid cards that charge one-time fees just to activate your account.

Choose a card with no annual fee and no hidden charges when possible.

Mistakes to Avoid with Low Credit

Some missteps can undo your progress quickly. Avoid these common errors:

Missing a payment. Just one missed payment can drop your score by 60–100 points.
Maxing out your limit. High utilization hurts your score and signals risk to lenders.
Carrying a balance month to month. You don’t need to carry a balance to build credit. Pay it off in full.
Closing accounts too early. Keeping accounts open improves your average credit age.
Applying for too many cards. Every application causes a hard inquiry. Space them out.

When to Upgrade to a Better Card

Once your credit score reaches the “fair” range (about 600–640), you may qualify for cards with higher limits, better rewards, and lower interest.

Some secured cards, like Discover and Capital One, automatically review your account for upgrades. If not, you can apply for a new card and close the old one—after checking that closing won’t hurt your score too much.

Before upgrading, check that:

You’ve had at least 6 months of on-time payments
Your balance stays low every month
Your score has improved since opening the card
You’ve monitored your credit through tools like Experian

Conclusion

Getting a credit card with poor credit isn’t just possible—it’s one of the best ways to rebuild your score. Secured cards like Discover it® Secured or Capital One Quicksilver Secured offer low-cost access to credit with the chance to earn rewards and graduate to better terms. Petal 1 and Mission Lane offer smart, unsecured options if you can’t afford a deposit.

Whatever card you choose, the key to success is simple: pay on time, keep your balance low, and give it time. Credit rebuilding is a process, but with the right tools, it’s within reach.

Additional Resources for Borrowers

If you’re trying to rebuild your credit or looking for safe credit card options, several reliable U.S. government and nonprofit resources can help you make informed decisions. These tools offer free education, credit reports, and financial assistance guidance. Below are some trusted sources:

FTC Credit and Loans Consumer Advice. The Federal Trade Commission provides trustworthy information on credit cards, credit repair scams, and how to spot unfair practices. It’s especially helpful if you’re sorting through offers and want to know your rights.

AnnualCreditReport.com. This is the only official site authorized by federal law to get free credit reports from Equifax, Experian, and TransUnion. Reviewing your report regularly helps you track progress and catch errors that may hurt your score.

Consumer Financial Protection Bureau (CFPB). The CFPB offers detailed guides on secured and unsecured credit cards, credit-building strategies, and avoiding high-fee financial products. Their resources are unbiased and written to help consumers, not lenders.

National Foundation for Credit Counseling (NFCC). The NFCC connects consumers with certified credit counselors who can help create debt repayment plans, offer budgeting advice, and guide you through rebuilding credit. Many services are free or low-cost.

MyFICO. A service by FICO, the company behind the most widely used credit score. It provides information on how credit scores are calculated and tools to monitor your score over time.