Having bad credit can make it challenging to qualify for many financial products, especially credit cards. However, it’s important to know that poor credit doesn’t mean you’re out of options. In fact, many banks and financial institutions now offer credit cards specifically designed to help people rebuild their credit scores.
In this guide, we’ll cover everything you need to know about getting a credit card with bad credit, how to use it wisely to improve your credit, and a list of some of the best credit cards for bad credit in 2025.
Understanding Bad Credit
Before choosing a credit card, it’s essential to understand what “bad credit” means.
Credit scores typically range from 300 to 850, and the higher your score, the better your credit. Here’s a general breakdown:
- Excellent: 750 – 850
- Good: 700 – 749
- Fair: 640 – 699
- Bad: 300 – 639
If your score falls in the “bad” range, it may be due to missed payments, high credit utilization, bankruptcy, or limited credit history. But the good news is that with responsible use of the right credit card, you can gradually rebuild your credit score.
How Credit Cards Can Help Rebuild Your Credit
Credit cards for bad credit are specifically designed to help you demonstrate responsible financial behavior. Here’s how they can help improve your credit:
- Payment History:
Making on-time payments is the most important factor in your credit score. Even one missed payment can hurt your credit, so always pay on time. - Credit Utilization:
Keeping your balance low compared to your credit limit shows lenders that you’re managing credit responsibly. - Credit Mix:
Having a variety of credit accounts (credit cards, loans, etc.) can boost your score over time. - Length of Credit History:
The longer you keep an account open and in good standing, the more it helps your credit score.
Types of Credit Cards for Bad Credit
There are two main types of credit cards designed for people with bad credit:
1. Secured Credit Cards
A secured credit card requires a refundable security deposit—usually between $200 and $500. The deposit acts as your credit limit. For example, if you deposit $300, your credit limit will be $300.
These cards are the easiest to get approved for and are ideal for rebuilding credit. As you make payments and keep your balance low, your credit score will gradually improve.
2. Unsecured Credit Cards for Bad Credit
Unsecured credit cards don’t require a deposit, but they often come with higher interest rates and lower credit limits. These cards are best for people who already have some credit history but need to rebuild after past mistakes.
Best Credit Cards for Bad Credit in 2025
Let’s look at some of the top-rated credit cards available for people with bad credit in 2025. Each card offers unique features, approval requirements, and benefits for rebuilding credit.
1. Discover it® Secured Credit Card
Key Features:
- Security deposit: $200 minimum
- 2% cash back at gas stations and restaurants (up to $1,000 per quarter)
- Reports to all three major credit bureaus
- No annual fee
Why It’s Good:
This is one of the best secured cards on the market. It offers cash-back rewards, no annual fee, and automatic reviews after seven months to see if you can upgrade to an unsecured card.
2. Capital One Platinum Secured Credit Card
Key Features:
- Minimum deposit: $49, $99, or $200 (based on creditworthiness)
- Reports to all major credit bureaus
- No annual fee
Why It’s Good:
Capital One’s secured card is ideal for those who want flexibility. Depending on your credit profile, you may qualify for a lower deposit while still getting a $200 credit limit. Over time, responsible use may help you qualify for an upgrade to an unsecured card.
3. OpenSky® Secured Visa® Credit Card
Key Features:
- Minimum deposit: $200
- No credit check required for approval
- Reports to all three credit bureaus
Why It’s Good:
OpenSky doesn’t require a credit check, making it perfect for people with extremely poor credit or no credit history at all. Consistent payments can significantly improve your score within a few months.
4. Petal® 1 “No Annual Fee” Visa® Credit Card
Key Features:
- No deposit required
- No annual fee
- Credit limits range from $300 to $5,000
- Uses alternative approval criteria (banking history, income)
Why It’s Good:
The Petal 1 card is an unsecured option that looks at your financial habits rather than your credit score. It’s a great choice for people working to rebuild their credit without paying a deposit.
5. Credit One Bank® Platinum Visa® for Rebuilding Credit
Key Features:
- No security deposit
- Reports to major credit bureaus
- 1% cash back on eligible purchases
Why It’s Good:
Credit One Bank specializes in credit cards for people with poor credit. It’s a solid unsecured option, but it comes with an annual fee (typically $39–$99).
How to Choose the Right Credit Card for Bad Credit
When comparing cards, consider the following factors to find the best option for your situation:
- Fees:
Avoid cards with excessive annual fees or hidden charges. Some bad-credit cards charge application fees or monthly maintenance fees—these are usually not worth it. - Interest Rates:
Look at the APR (Annual Percentage Rate). Since bad-credit cards often have higher interest rates, aim to pay your balance in full every month to avoid paying interest. - Credit Reporting:
Make sure the card reports to all three major credit bureaus (Equifax, Experian, and TransUnion). Otherwise, your good payment history won’t help your score. - Upgrade Path:
Choose a card that allows you to upgrade to an unsecured version once your credit improves. - Rewards and Benefits:
While not essential, some secured cards offer cash back or travel rewards. If two cards are similar in fees, choose one with better perks.
Tips to Use a Credit Card for Bad Credit Wisely
Having a credit card is only part of the process. To rebuild your credit successfully, follow these responsible habits:
- Pay on Time:
Your payment history makes up 35% of your credit score. Set up automatic payments or reminders to avoid missing due dates. - Keep Balances Low:
Try to use less than 30% of your credit limit. For example, if your limit is $300, keep your balance below $90. - Avoid Applying for Too Many Cards:
Each application can lower your score slightly. Focus on one card and use it responsibly. - Check Your Credit Report Regularly:
Review your reports from all three bureaus for errors. You can get a free report once a year at AnnualCreditReport.com. - Upgrade When Ready:
After six to twelve months of responsible use, ask your issuer if you qualify for an unsecured credit card or higher credit limit.
How Long Does It Take to Rebuild Credit?
Rebuilding your credit score takes time and consistency. Most people start to see improvement within three to six months of responsible credit use. However, major issues like bankruptcies or charge-offs can take longer to recover from.
The key is patience. Keep making on-time payments, maintain low balances, and avoid new debt. Over time, your credit score will rise, unlocking access to better financial products.
The Bottom Line
Having bad credit doesn’t mean you can’t have a credit card—it simply means you need to choose wisely. The best credit cards for bad credit, such as the Discover it® Secured or Capital One Platinum Secured, provide opportunities to rebuild your financial reputation through responsible use.
Start with a secured card if necessary, make consistent payments, and monitor your progress. With discipline and time, your credit score will improve, giving you access to better credit cards, lower interest rates, and stronger financial freedom.