Best Credit Cards for Bad Credit in June 2025

FICO, the credit score used by 90% of top lenders, considers a score ranging from 300 to 580 to be bad or poor. According to Experian, 16% of Americans fall within that range.

FICO’s competitor, VantageScore, considers a range of 500 to 600 to be poor, and 300 to 499 to be very poor.

Your credit score is determined by the information that lenders give to the three major credit bureaus (Equifax, Experian and TransUnion) in your credit reports. The five factors that make up this score are:

• Your payment history
• The amount of debt you owe
• The length of your credit history
• New lines of credit
• Your mix of credit accounts

 

 

• Secured credit cards for bad credit

  If you have bad credit, your best bet will likely be a secured credit card. Unlike traditional credit cards, secured cards require a security deposit — usually starting at $200 — which will serve as your line of credit. The deposit essentially acts as collateral for the credit card company in case you don’t pay your bill. However, if you upgrade to an unsecured card or pay your balance in full and close your account, you’ll get your deposit back.

  The Discover it^® Secured Credit Card is currently our pick for the best secured card. It accepts applicants with limited / poor credit, requires a refundable security deposit ranging from $200 to $2,500 and even offers cash back on every purchase.

• Unsecured credit cards for bad credit

  Unsecured credit cards for bad credit accept applicants with poor or limited credit without charging a security deposit. But in lieu of the deposit, these cards often come with higher interest rates and may charge fees. Some cards charge more than $200 per year in fees, including set-up fees, annual fees and monthly maintenance fees. You should carefully scan the terms and conditions for such fees before you apply.

  The Petal^® 2 Cash Back, No Fees Visa^® Credit Card is currently our top pick for an unsecured credit card for bad credit.

• Store credit cards for bad credit

  Store cards or retail cards tend to be some of the easiest cards to qualify for. They usually have more relaxed credit requirements than traditional cards, and often come with rewards programs designed to get you to spend more than you normally would at the store — but also sky-high interest rates.

  Our current top pick for a store credit card for bad credit is the Amazon Secured Card, which unlike most store credit cards has an extremely low 10.00% non-variable APR.

• Student credit cards for bad credit

  Student credit cards for bad credit offer an affordable way for students to build their credit. While most student cards require at least a limited credit history, there are options available for those with bad credit, including secured cards.

  Our top pick for the best student credit card for bad credit, the Firstcard^® Secured Credit Builder Card with Cashback, doesn’t require a credit check or Social Security number to get approved.

The two most common types of credit cards available if you have bad credit are secured and unsecured credit cards. Secured credit cards are often the best option for those with bad credit because they tend to be more affordable than unsecured cards, usually have little to no annual fee and some even offer rewards programs. They’re also more transparent about their terms, so you’re less likely to find surprise fees or interest on your billing statement.

Secured credit cards require you to put down a security deposit to act as your credit line. However, that deposit is refundable when you close your account in good standing or graduate to an unsecured credit card. Unsecured credit cards for bad credit don’t require a security deposit, but they often come with very low starting credit limits, and unlike secured cards, you can’t increase the limit by adding a larger deposit. Many unsecured credit cards for bad credit also come with expensive fees, high interest rates and bad terms. In some cases, you might end up paying more in fees than you would for a security deposit on a secured card.

 

 

1. Check to see if you’re preapproved. Many issuers let you see if you prequalify for a credit card before applying. While preapproval doesn’t guarantee you’ll be approved for a card, it can help you gauge your chances without affecting your credit score.
   Check your mail or email for prescreened offers: Make sure the offer is legitimate before you apply.
   Use online prequalification tools: Some websites allow you to prequalify for cards from a number of issuers.
   Go directly to the issuer site: Most credit card issuers have prequalification tools.
   Apply through a bank branch
   Apply through your favorite store
2. Apply for a credit card for bad credit. The next step is to complete a credit card application online, in-person at a bank, over the phone or through the mail. You’ll need to submit basic information, like your name, Social Security number, birth date, address, phone number, employment status, income and housing costs.
3. Submit a security deposit if necessary. You’ll need to submit your deposit after being approved. You’ll likely need a bank account to make an electronic deposit. Though less common, some issuers may allow you to use other methods to make a deposit, like a check or money order. If you can’t pay the whole deposit at once, ask your issuer if you can pay it in increments.
4. Build your credit for a chance to upgrade. If your objective is to get a credit card with better rewards or a lower interest rate, you’ll need to boost your credit profile by displaying responsible card usage. This includes paying your bills on time every month.

By using a credit card responsibly, you can improve your credit score over time. Following these steps can help you qualify for credit cards with better rewards programs, more benefits and lower APRs in the future:

1. Pay your bill on time and in full every month. Because your payment history is the most important factor affecting your credit score, you should always pay your bill on time. We also recommend paying your balance in full whenever possible to avoid racking up expensive interest charges. But, even if you can’t pay in full, you should make at least the minimum payment, so you won’t be reported as late to the credit bureaus.
2. Don’t use your entire line of credit. Experts recommend using no more than 30% of your credit limit. This means if you have a $3,000 line of credit, you shouldn’t carry a balance of more than $900 at any given time.LendingTree research found that consumers with poor credit scores have the highest utilization ratio, averaging 75.7%.

   Credit score range	Average credit card utilization rate
   300 to 579 (deep subprime)	75.7%
   580 to 619 (subprime)	63.1%
   620 to 659 (near-prime)	52.8%
   660 to 719 (prime)	36.2%
   720 to 850 (super-prime)	10.2%

3. Avoid applying for additional credit unless absolutely necessary. When you apply for new credit, it generates a hard inquiry and lowers your average age of accounts. Both of those actions negatively impact your credit score.
4. Use your card regularly to make small purchases. Issuers like to see that you’re using your card, but that you’re also keeping your spending under control. Note that you don’t need to use your card at all to generate a credit report. As long as your account is open and you don’t make late payments, you’ll generate a positive payment history. However, the issuer may close your account if it’s inactive. To avoid this, you can charge small, recurring transactions to your card, like monthly streaming or magazine subscriptions. Then, set up autopay to ensure you never miss a payment.

 

 

1. Take out a credit builder loan. With a credit builder loan, a lender sets aside a certain amount of money into a savings account and the balance is released to you after you make all of your monthly payments. Payment history is reported to the three major credit bureaus, helping you improve your credit.
2. Become an authorized user. An authorized user is someone added to a credit card account by the primary cardholder. As long as the primary cardholder uses the card responsibly, an authorized user can build credit through the primary cardholder’s account and eventually become eligible for their own credit card.
3. Stay current on student loans. Staying current with student loan payments can help the payment history part of your credit score, which is the most important factor.
4. Use personal loans or auto loans. In addition to credit cards, other types of credit can contribute to improving your credit score. Your FICO score also considers your credit mix, which includes the various types of credit you manage.
5. Use rent payments. Sometimes you can ask your landlord or property manager to report rent payments to the credit bureaus, which can be another way to build credit. There are also third-party companies that will report these payments for free.

 

• Upgrade to a different credit card with the same issuer

  If you have a secured credit card, you may be able to upgrade to an unsecured card after making a certain number of on-time payments. For example, after you’ve had the Discover it^® Secured Credit Card for seven months, Discover will begin automatic account reviews to see if you qualify to get your deposit back and upgrade to their unsecured card. Some issuers also let you switch to a different credit card within your account without a hard inquiry or affecting your credit history length.

• Keep your current credit card and apply for another with a different issuer

  It’s always best to keep your credit cards open if possible. Closing a credit card can negatively impact your credit utilization ratio and average length of accounts, which are both major factors in your credit score. The best option is to set up a small recurring payment, such as a subscription, to keep the card active. Then, you can look for a card that fits your lifestyle, like a rewards credit card, which you now qualify for.

  Tip: If you decide to have multiple credit cards, make sure you continue to make on-time payments to maintain a good credit score. You can set your payment due dates to be the same across cards to help with this.

• Close your credit card and look for a new credit card with a different issuer

  If your secured credit card doesn’t have an option to upgrade to an unsecured credit card, closing the card and opening a new one might be the best option so you can get your security deposit back.