Best credit cards for bad credit of October 2026

Even with bad or limited credit, getting a credit card is possible, and the right one can improve your score. CardRatings editors reveal the best cards for bad credit.

A good credit score impacts everything from credit card offers to loans and mortgages. Your score is based on your credit history, including payment history, accounts, debt, and collections. Those with poor credit may struggle to qualify for loans, apartments, jobs, or good credit card offers. Responsibly using a credit card can help build or rebuild credit. While top rewards cards may be out of reach, there are credit cards for low credit scores, some even with rewards. These include secured cards (requiring a deposit) and unsecured cards (with a spending limit). Unsecured cards for low credit often have high fees. Below are our experts’ top picks for credit cards to help build bad credit, including both secured and unsecured options.

What to look for in a credit card for bad credit 

There isn’t a single card that will meet the needs of every cardholder. There are, however, a handful of features that any card should have to put it in the running for a spot in your wallet. 

Reports to all three major credit bureaus 

The primary job of a credit card for bad credit is to help you rebuild your credit score. It can’t do that if the issuer doesn’t report monthly to all three credit bureaus. 

Some card products — especially prepaid and fintech cards — don’t report to Equifax, Experian and TransUnion, but reporting to all three is necessary to build credit. You want your responsible card use to reflect on your score, after all, so skip the cards that skip the reporting. 

Secured deposit vs. no-deposit unsecured option 

A secured credit card, like Capital One Platinum Secured or Discover it Secured, requires a refundable security deposit to establish your line of credit, while an unsecured card, like Credit One Bank Platinum Visa for Rebuilding Credit, doesn’t. 

Unsecured cards for bad credit often charge higher fees, so the right choice depends on whether you can afford the deposit. 

Low or predictable fees 

Speaking of fees, credit cards for bad credit are notorious for charging a lot of them, but you don’t have to accept that. There are plenty of options with low or reasonable fees. 

Be on the lookout for stacked fees such as an annual fee, plus a monthly maintenance fee, one-time program fee and a setup fee. A single, low annual fee isn’t necessarily a dealbreaker. In fact, that will often end up costing less than a card that advertises “No annual fee!” but charges monthly maintenance or transaction fees. 

A clear graduation path to unsecured 

If you choose a secured card, make sure it’s one with a plan for transitioning to an unsecured card. Capital One, for example, periodically reviews secured accounts for eligibility to upgrade, while Discover notes you can earn your way to an unsecured card when you “establish a positive track record.” 

Other issuers may require you to request to graduate; either way, ensure there’s an obvious transition plan in place. 

Rewards are a bonus, not the main event 

It’s true that there are credit cards for bad credit that offer rewards. card_name, for example, offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%). But rewards shouldn’t be the main consideration when choosing a card. 

Prioritize credit reporting, reasonable fees and, for secured cards, a graduation path. Rewards are simply a bonus. 

Secured vs. unsecured credit cards for bad credit 

There are two primary options when it comes to credit cards for bad credit: secured and unsecured cards. There are good options in both camps, so the decision will come down to your needs and preferences. 

How secured credit cards work 

Secured credit cards require a security deposit — often $200-$300 — to establish your line of credit. Usually, the amount of your deposit equals the amount of your credit line. Your security deposit is only used if you default on the card. Your deposit is fully refundable when you close the account in good standing or graduate to an unsecured card. 

Otherwise, secured cards work like unsecured cards: You make monthly payments and manage your card responsibly, and the issuer reports your card activity to the three credit bureaus. 

When a secured card wins 

You’ll likely have more secured than unsecured options if your score is below 580, you have charge-offs or collections in your record or you have a thin credit file. Secured cards are generally easier to qualify for than unsecured cards because the deposit reduces the issuer’s risk. 

Additionally, many secured cards have lower fees than unsecured options for people with bad credit, and they offer the clearest graduation paths to unsecured credit cards. 

When an unsecured bad-credit card makes sense 

If you have a score of 580-620, you’ll likely have some unsecured options to choose from. That can be a better option if you don’t have the cash on hand for a secured card deposit. 

There’s often a tradeoff, though. Unsecured cards for bad credit typically charge higher fees. Therefore, you should still look to avoid cards with stacked fees or other setup fees on top of an annual fee. 

The deposit-fee tradeoff in dollars 

Paying a security deposit may sting in the beginning, but you could come out ahead in the end. 

For example, suppose you pay a $200 deposit on a secured card with no annual or monthly fees and graduate to an unsecured card after six months of on-time payments. Your $200 deposit is returned, so it ultimately costs you nothing. 

By comparison, six months with an unsecured card charging a $75 annual fee plus $9 per month would cost $129, and none of that money comes back. 

How to use a credit card to rebuild your score 

Opening the credit card is just the first step in rebuilding your credit. Using it well is the truly critical part. 

Keep utilization under 30% — ideally under 10% 

Credit utilization is the amount of credit you’re using compared to the amount available to you, and it’s a major factor affecting your credit score. 

It’s best to keep your utilization under 30%, but it’s even better if you can keep it under 10%. On a card with a $300 limit, you should try to keep your balance below $90 or, even better, below $30. 

Issuers generally report balances once a month, often using your statement balance. Paying down your balance before the statement closes can therefore help keep reported utilization low. 

Consider this: If you put a $250 charge on your card with a $300 limit right before the statement closes, that’s 83% utilization. If, however, you pay that charge down to $25 before the statement closes, that’s just 8% utilization. 

Pay on time, every time — set autopay for the minimum 

Payment history makes up 35% of your FICO score and is the largest single factor. Therefore, missing payments is one of the fastest ways to negatively affect your credit score. 

Help protect yourself by setting up autopay for the minimum balance so you never miss a payment. Ideally, you’ll still pay the full statement balance, but this at least keeps you from missing a payment completely. 

Use the card lightly and consistently 

Simply opening the card isn’t enough; you have to demonstrate that you can use it responsibly. Additionally, issuers may close an unused card. 

It’s best to put a few small charges on the card — maybe a streaming subscription or monthly tank of gas — and then pay it off each month. That’s enough to keep your credit utilization low and also show responsible credit use. 

Consider waiting six months before applying for anything else 

Opening a credit card triggers a hard inquiry and can ding your score by several points. Additionally, each new card shortens your average age of accounts. Your length of credit history is another factor affecting your score. 

As a rule of thumb, consider giving each new account six months of responsible use and payment before applying for another card. You can reassess at that time whether the current card is still working for you or whether it’s time to apply for a new product. 

When to move beyond a bad-credit card 

Your credit card for bad credit is a stepping stone. Used wisely, you’re setting yourself up to move on to better credit products in the future. 

Signs it’s time to upgrade 

After six months with your current card, assess your situation. Do you have six-plus months of on-time payments? Is your utilization consistently below 30%? Have you avoided new derogatory marks in your credit file? Has your FICO score risen into the fair-credit range? 

If you can answer “yes” to all those questions, you might qualify for a card for fair credit. That opens doors to lower fees, higher limits and better rewards, and it could be time for you to upgrade. 

Ask for a graduation, don’t just apply elsewhere 

Before applying for a card elsewhere and triggering another hard inquiry, talk to your current issuer about graduating to another card in their lineup. 

This is particularly relevant if you have a secured card. Your issuer may have an automatic path to move you to a new card after a period of on-time payments, while other issuers will require you to call. Graduating to an unsecured card can refund your security deposit and help you avoid a new hard inquiry. 

Next-step card categories 

Moving into the fair-credit range opens up far more credit card options, especially if you’ve been hoping to enter the rewards credit card space. 

For example, card_name charges a $39 annual fee and offers 1.5% cash back on every purchase. Petal 2 Visa awards 1-1.5% cash back with no annual fee. These and other cards for fair credit are solid next steps in your credit journey. Continue using credit responsibly and you may eventually qualify for cards for good credit, opening up options such as 0% intro APRs, welcome bonuses and richer rewards.