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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
- Indigo Platinum Mastercard
- Milestone Mastercard
- Discover It Secured
- Capital One Secured Mastercard
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
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
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
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
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!
Brady Smith
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Brady is a writer, voice artist, podcaster and website designer. He holds a Bachelor’s Degree in Communication and specializes in crafting effective messaging designed to get results. Brady makes his home on the edge of society - close enough for good WiFi, but far enough out to not have to worry about traffic.
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