Introduction
Struggling with a low credit score can feel discouraging, but here’s the good news: you can still qualify for a credit card. In fact, the right card can help you rebuild your credit over time. In 2025, more U.S. lenders are offering credit card options tailored for individuals with bad credit, making it easier than ever to get back on track financially.
Whether you’ve missed payments, gone through bankruptcy, or have little credit history, this guide covers the best credit cards for bad credit in the U.S. It also explains how they work, what to look for, and how to use them responsibly to improve your credit score.
What Is Considered “Bad Credit”?
Before choosing a card, it’s important to understand your credit standing. Credit scores typically range from 300 to 850. Here’s a quick breakdown:
- 300–599: Poor credit
- 600–669: Fair credit
- 670–739: Good credit
- 740+: Excellent credit
If your score is below 600, you likely fall into the bad credit category. While that might limit your options, there are still plenty of credit card products designed with you in mind.
Types of Credit Cards for Bad Credit
Not all cards for bad credit are created equal. Here are the main types available in 2025:
1. Secured Credit Cards
These cards require a refundable deposit—usually $200 or more—which acts as your credit limit. They’re a great way to demonstrate responsible usage.
2. Unsecured Credit Cards
These don’t require a deposit but often come with higher interest rates and fees. Some are predatory, so choose carefully.
3. Store Credit Cards
Offered by major retailers, store cards are easier to get approved for but can only be used at specific stores.
4. Credit Builder Cards
Specifically designed to report to all three major credit bureaus, these cards help you build or repair your credit history efficiently.
Top 7 Best Credit Cards for Bad Credit in 2025 Let’s dive into the most recommended options available to U.S. consumers this year.
1. Discover it® Secured Credit Card
- Annual Fee: $0
- APR: 27.24% (variable)
- Deposit: $200 minimum
- Benefits: Earn 2% cash back at gas stations and restaurants, free FICO score, automatic reviews for upgrade
Why it’s great: This is one of the few secured cards that offers rewards, making it ideal for someone looking to rebuild credit without sacrificing perks.
2. Capital One Platinum Secured Credit Card
- Annual Fee: $0
- APR: 30.74% (variable)
- Deposit: $49, $99, or $200 (based on creditworthiness)
- Benefits: Access to a higher credit line after 6 months of on-time payments
Why it’s great: Flexible deposit requirements make it more accessible, and there’s a clear path to graduation.
3. Chime Credit Builder Visa® Card
- Annual Fee: $0
- APR: 0%
- Deposit: None (requires Chime account and secured funds)
- Benefits: No credit check, reports to all major bureaus, no interest
Why it’s great: This card is perfect for beginners or those afraid of traditional credit card traps. There’s no APR to worry about.
4. OpenSky® Secured Visa® Credit Card
- Annual Fee: $35
- APR: 25.64% (variable)
- Deposit: $200 minimum
- Benefits: No credit check needed
Why it’s great: If your credit history is severely damaged, OpenSky gives you a chance to rebuild without a hard inquiry.
5. Mission Lane Visa® Credit Card
- Annual Fee: $0 to $59 (based on credit profile)
- APR: 26.99% to 29.99%
- Deposit: None
- Benefits: Fast pre-qualification, regular credit line reviews
Why it’s great: This unsecured option offers a path to improvement without requiring a deposit, though fees vary.
6. Petal 1 “No Annual Fee” Visa Credit Card
- Annual Fee: $0
- APR: 25.24% to 34.74%
- Deposit: None
- Benefits: Uses cash flow, not just credit score, to approve
Why it’s great: If your score is low but your income is steady, this card offers a fresh opportunity.
7. Self Visa® Credit Card
- Annual Fee: $25
- APR: 26.24%
- Deposit: None directly (requires Self Credit Builder Account)
- Benefits: Reports to all bureaus, helps build savings and credit simultaneously
Why it’s great: It blends credit-building with savings habits, ideal for long-term financial health.
Comparison Table
| Card Name | Type | Annual Fee | APR | Credit Check | Rewards | Deposit Required |
|---|---|---|---|---|---|---|
| Discover it® Secured | Secured | $0 | 27.24% | Yes | Yes | $200 |
| Capital One Platinum Secured | Secured | $0 | 30.74% | Yes | No | $49+ |
| Chime Credit Builder | Builder | $0 | 0% | No | No | Linked Account |
| OpenSky® Secured | Secured | $35 | 25.64% | No | No | $200 |
| Mission Lane Visa® | Unsecured | $0–$59 | Up to 29.99% | Yes | No | None |
| Petal 1 Visa | Unsecured | $0 | Up to 34.74% | Yes | No | None |
| Self Visa® | Builder | $25 | 26.24% | Yes | No | Builder Account |
How to Use a Bad Credit Card Responsibly Using your new credit card wisely is key to improving your score. Here are some crucial tips:
- Always pay on time: Late payments hurt your score more than anything else.
- Keep your balance low: Try to use less than 30% of your limit.
- Avoid unnecessary applications: Too many credit inquiries can drag your score down.
- Monitor your credit: Many cards offer free FICO score tracking.
- Upgrade when ready: Once your score improves, switch to a better card with more perks.
FAQs About Credit Cards for Bad Credit
💳 Can I get approved with a 500 credit score?
Yes, especially with secured or credit builder cards. Many issuers are more flexible in 2025.
❓ Will applying hurt my credit score?
A hard inquiry can cause a small dip, but using the card responsibly will help in the long run.
📈 How fast can I rebuild my credit?
Most people see improvement within 3 to 6 months of on-time payments and low balances.
⚡ Are there cards with guaranteed approval?
No card guarantees approval, but cards like OpenSky and Chime come close by skipping credit checks.
Conclusion: Start Rebuilding Today
Bad credit doesn’t have to define your financial future. With so many 2025 options available, there’s a card for almost every situation. Whether you choose a secured card like Discover it® or a unique tool like Chime’s builder card, you can take control of your credit.
Compare features, understand the fees, and most importantly, use your card responsibly. Because every on-time payment and low balance gets you one step closer to good credit.
Want to learn more about building financial strength?
Check out our guide on High-Yield Savings Accounts or explore tools at NerdWallet.
Written by Smart Money Brief Team | Join our Telegram Group for daily money tips and updates
