Best Credit Cards For Bad Credit of

July 2025

Compare top credit cards for bad credit, offering accessible approval, low fees, and tools to rebuild your credit history.

Best For No Interest
image-7d30368664b252bc3f1b901f17f44baa53b34844-3888x2448-jpg
5.0

MoneyAtlas

Rating

Chime® Credit Builder Visa®

Apply Now

Ongoing Annual Fee

$0

Ongoing Purchases APR

N/A

Credit Score Needed

Rate MeterRate Pointer
Poor, No Credit, Fair
image-77894f4f5c86524bee56adb93659f3978cae2a46-500x315-webp
4.6

MoneyAtlas

Rating

The Secured Self Visa® Credit Card¹

Apply Now

Ongoing Annual Fee

$0 intro annual fee; $25 thereafter*

Ongoing Purchases APR

28.24% Variable

Credit Score Needed

Rate MeterRate Pointer
Poor, No Credit, Fair

Best Credit Cards for Bad Credit 2025

A sub-580 credit score—or a thin file with no score at all—doesn’t lock you out of plastic. Tens of millions of Americans sit in that “subprime” bucket today, yet most rebuild their scores in under two years by using the right starter card and paying on time.

How Bad-Credit Credit Cards Work

Most options fall into two buckets:

ModelMechanics
Secured cards You place a refundable cash deposit—typically $200–$300—which becomes your credit limit. Use the card; pay at least the minimum by the due date; the issuer reports activity to the bureaus and reviews you for “graduation” after 6–12 on-time payments.
Unsecured subprime cards No deposit, but approval odds are lower and fees/APRs are higher. Some fintech “alternative-data” cards underwrite on bank-account cash flow instead of scores, then report your payments to build credit.

Either way, payments flow to at least one—and ideally all three—major business bureaus (Experian®, Equifax®, TransUnion®). Good habits raise scores; missed payments set you back.

Pros

  • Path to build or rebuild credit with responsible use.
  • Secured deposits are refundable.
  • Some products now carry modest cash-back rewards or graduation bonuses.

Cons

  • Security deposit ties up cash.
  • APRs often sit well above mainstream cards—never revolve a balance.
  • Setup fees, monthly maintenance fees, or high foreign-transaction fees on certain unsecured offers.

Types of Bad Credit Credit Cards

Card TypeIdeal UserInsights
Classic Secured Anyone who can front $200+ Lowest total cost; nearly universal approval if you have income.
Graduating Secured Rebuilders who want an upgrade path Issuer starts automatic reviews after 6–12 statements and refunds your deposit when you qualify.
Variable-Deposit Secured Cash-constrained applicants Tiered deposits ($49 / $99 / $200) for the same $200 limit reduce the upfront hit.
Unsecured Subprime No cash for a deposit Watch for setup + monthly fees that can exceed $100 the first year.
Alternative-Data / Fintech Builder Thin-file or gig-economy workers Approvals based on bank-cash-flow or subscription; reports like a traditional card.
Store Cards Frequent shoppers of one retailer Easier approval, but high APR and limited usability outside the brand.

Key Features That Matter

  1. Deposit & Credit Limit (Range usually $200–$5,000).
  2. Fee Stack Look for $0 annual + $0 monthly; avoid “program” or “maintenance” fees that eat your limit.
  3. Reporting Footprint Cards that hit all three bureaus speed score recovery.
  4. Graduation Policy Automatic reviews after 6-12 timely payments return your deposit and/or move you to an unsecured line.
  5. Credit-Monitoring Tools Free score updates and budgeting alerts keep you on track.

Five-Step Rebuild Framework

  1. Know Your Starting Point Pull your free annual credit reports; check scores and any derogatory marks.
  2. Save the Deposit First Set aside at least $200 so the deposit doesn’t stress your budget.
  3. Choose a Card that Reports to All Bureaus More data = faster score movement.
  4. Automate On-Time Payments One late payment wipes out months of progress—set autopay for the statement balance or minimum.
  5. Keep Utilization < 30 % If your secured limit is $300, avoid balances above $90 at any reporting date.

Smart Usage Tips

  • Pay Early & Often Multiple small payments each month keep utilization ultra-low.
  • Set Credit-Builder Alerts Many issuers ping you when you’re eligible to raise the limit or graduate—respond fast.
  • Avoid Cash Advances They skip the grace period and trigger fees plus interest immediately.
  • Leave the Account Open After Graduation A fee-free, aged line helps your length-of-credit-history metric forever.
  • Monitor Your Scores Monthly Free tools from issuers or apps flag errors you can dispute quickly.

FAQs