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If you have bad credit, you are not alone. In fact, roughly 30% (or, 668 million people) of Americans have a credit score that is lower than 601. However bad your credit might be, credit cards are still important to have in order to help make big purchases and to help make ends meet when cash flow is tight.

Additionally, if you stop using your credit cards, your credit score can actually begin to sink even lower.

So, if you have bad credit, which credit cards can or should you apply for? That’s what this article is all about. We will walk you through the five best credit cards for people with bad credit.

The 5 Best Credit Cards for People with Bad Credit:

Credit One Bank Platinum Visa Credit Card

Good For Rebuilding Credit

The Credit One Bank Platinum Visa credit card is great if you’re looking to rebuild your credit score. It is very easy to apply for this card and you will have an answer within 60 seconds if you apply online. Many cards that accept bad credit do not offer cashback or rewards; however, this card offers 1% on all eligible purchases.

We’ll break down other reasons to love this card below. 

  • Rewards: 1% Cashback on eligible purchases
  • Annual Fee: $0-$99
  • APR: 19.49% - 25.49% dependent on credit usage
  • Minimum Credit Score Needed: Bad to Medium credit

Other Reasons to Love This Card:

  • Easy to apply and will give you an answer in 60 seconds
  • Free access online and via the Credit One mobile app to pay your card and check your credit score
  • Credit One automatically reviews accounts looking for opportunities to maximize users’ credit line

Cons:

  • Initial credit limits start very low, at or around $300

Indigo Platinum Mastercard

Indigo Platinum Mastercard

Good For Bad Credit

The Indigo Platinum Mastercard is an excellent choice if you have really bad credit. 

That’s because this card will accept your credit card application even if you have previously filed for bankruptcy. Because this card was designed with bad credit in mind, it is an excellent choice if you are in need of a credit card and can’t seem to get approved by other cards. However, keep in mind, this card offers a very low initial credit line (likely to help make it easier to pay it off month to month and build your credit score).

  • Rewards: None
  • Annual Fee: $0-$99
  • APR: 24.90% Fixed
  • Minimum Credit Score Needed: Bad - this credit card will even accept your application if you have bankruptcy listed in your credit history.

Other Reasons to Love This Card:

  • Designed specifically for users with bad credit
  • Easy to apply for

Cons:

  • It can take up to two weeks for card payments to post online, which has been a frustration to current cardholders.

Milestone Mastercard

Milestone Mastercard

Good For Bad Credit

The Milestone Mastercard is very similar to the Indigo Platinum Mastercard. Milestone accepts customers who have a bankruptcy in their credit history and offers a very low initial credit line. A fun perk to this card, however, is that customers can pick out their own card design at no additional cost.

  • Rewards: None
  • Annual Fee: $35-$99
  • APR: 24.90% Fixed
  • Minimum Credit Score Needed: Bad - this credit will accept your application even if you have bankruptcy listed in your credit history.

Other Reasons to Love This Card:

  • Customers can choose their own card design at no additional cost

Cons:

  • This card has a very low initial credit limit at $300
  • It can take up to two weeks for card payments to post online

Discover It Secured

Discover It Secured

Best Overall Credit Card for Bad Credit

Our pick for the best overall credit card for bad credit is the Discover It Secured credit card. Not only is this card a secured credit card, it also offers cashback - not to mention a cash back match at the end of your first year. There is also no annual fee for this card. The only con for this card is that not every vendor accepts Discover.

  • Rewards: 1% - 2% cashback. At the end of your first year, they offer a cashback dollar for dollar match 
  • Annual Fee: None
  • APR: 24.49% variable
  • Minimum Credit Score Needed: Poor to Fair

Other Reasons to Love This Card:

  • Discover app features a free credit score tracker
  • Secured credit card (many credit cards that accept bad credit are unsecured)

Cons:

  • Not every vendor accepts Discover cards

Capital One Secured Mastercard

Capital One Secured Mastercard

Runner-Up For Best Overall

Second to the Discover It Secured credit card is the Capital One Secured Mastercard. The only reason that this card is the runner-up is because it does not offer any rewards or cashback and the APR is quite high. However, they accept customers who have low credit scores and it is a secured credit card. Additionally, this card is accepted in most places in the US and even abroad.

  • Rewards: None
  • Annual Fee: None
  • APR: 26.74% variable
  • Minimum Credit Score Needed: Poor

Other Reasons to Love This Card:

  • Secured credit card
  • No foreign transaction fee

Cons:

  • High APR

If you’re one of 30% of Americans looking to rebuild your credit score after filing for bankruptcy or just having bad credit in general, any of these five cards would be an excellent choice for you. However, depending on your particular needs and credit goals, we hope this article helped make your choice a little bit easier.

Making a comeback after having bad credit is not impossible, and choosing one of these five credit cards can help make it even easier. Which of the five best credit cards for people with bad credit will you choose? Let us know!

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Posted 
Jan 29, 2020
 in 
Money
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