[Disclosure: Cards from our partners are reviewed below.]
Are you looking to establish credit as a young adult? Maybe you are trying to build your credit back up after a rough period. No matter what your objective might be, a credit card is one of the best options available to you. However, the type of card you can be approved for is dependent on your credit score.
There are two types of cards are available, secured and unsecured. Secured credit cards usually have lower FICO score requirements, which make them easy credit cards to get approved for when you have bad credit or no credit at all. With a secured credit card, you are usually required to make a cash deposit. This will act as your credit limit. Secured cards tend to help boost your FICO score quickly, allowing you to move to an unsecured card faster.
An unsecured card doesn’t have all the limitations that you will find on most secured cards. An unsecured card is available to most borrowers with average credit and above. They have generous reward opportunities and a lower APR on purchases. (Not sure where your credit stands? You can check two of your scores for free on Credit.com.)
So now that you have made the decision to apply for a new card to work on your credit score, you need to decide what card is right for you. Once you know that, you can simply apply online and possibly have an approval in minutes. To help you in the right direction, here are four of our favorite credit cards for those with bad credit.
Credit One Bank® Unsecured Platinum Visa®
- See if you Pre-Qualify without harming your credit score
- This unsecured card requires no deposit and can help build your credit
- Track your progress with free online access to your Experian credit score, terms apply
- Build your credit history—we report to the credit bureaus monthly
- Accounts are automatically reviewed for credit line increase opportunities
- Enjoy the flexibility to choose your payment due date, terms apply
- Receive 1% cash back rewards on eligible purchases, terms apply
- No need to fret—you’re covered by $0 Fraud Liability
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The Credit One Bank Unsecured Visa is one of the few credit cards geared toward people with bad credit that is actually unsecured. That means you will not be required to put down any kind of a cash deposit. One nice feature with this card is that you can get pre-approved in minutes. Without performing a hard inquiry on your credit report, they can let you know if you are likely to receive approval or not.
Another feature that you won’t find in many other secured cards is the ability to earn rewards on purchases. With the Credit One Bank Unsecured Visa, you will receive 1% cash back when you use your card at gas stations and grocery stores. Finally, Credit One Bank will report to all three major credit bureaus each month. The card carries a variable APR of 19.99% - 25.99% Variable.
Indigo® Mastercard® for Less than Perfect Credit
- Less than perfect credit histories can qualify, even with prior bankruptcy!
- Choose your custom card design - Free
- Quick pre-qualification available with no impact to your credit score
- Fast and easy decision on your application
- Access your account online or from your mobile device 24/7
- Protection from fraud, if your card happens to be lost or stolen
- Accepted worldwide at most locations
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Another unsecured card that is good for anyone with bad credit is the Indigo Platinum Mastercard. You can get a pre-qualification on this card without it affecting your credit score. Depending on your credit score, there will be an annual fee of $0 - $99*. The variable APR on purchases is 23.90%.
Because the Capital One Secured Mastercard is a secured credit card, you are required to put down a deposit when you’re approved. Typically the deposit you make will be equal to the credit line you receive. However, with this card you can receive a $200 credit limit with a deposit of either $49 or $99, depending on your credit score. Over time you might even be able to have your credit limit increased without any additional deposit required. This card has an annual fee of $0, which is a nice perk. However, it does have a high APR of 26.99% (Variable) on purchases and balance transfers.
U.S. Bank Secured Visa Card
With the U.S. Bank Secured Visa Card, you can receive up to a $5,000 credit limit if you have the cash to put down for a deposit. This card is great for those hoping to move to an unsecured card with more benefits. After 12 months, U.S. Bank will assess the job you have done as a borrower and consider moving you to a new product. A lot of secured cards will make you wait at least 18 months, so this provides a great opportunity. The U.S. Bank Secured Visa Card has a $29 annual fee and a 19.99% variable APR on purchases.
At publishing time, the Credit One Bank Unsecured Visa Credit Card, Indigo Platinum Mastercard and Capital One Secured Mastercard are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for these cards. However, these relationships do not result in any preferential editorial treatment. This content is not provided by the card issuers. Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuers.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.