Introduction
If your credit score has taken a hit due to missed payments, high debt, or other financial setbacks, you’re not alone. Millions of Americans face the same struggle. The good news? You can begin repairing your credit with the right tools — and one of the most powerful tools is getting a credit card designed for bad credit.
In this guide, we’ll explore the best credit cards for bad credit in 2025, explain the difference between secured and unsecured cards, and help you choose a card that fits your financial goals.
What Is Considered “Bad Credit”?
In the U.S., credit scores are generally grouped into these ranges:
- Excellent: 800 – 850
- Very Good: 740 – 799
- Good: 670 – 739
- Fair: 580 – 669
- Bad: Below 580
If your score is below 580, most premium credit cards will reject your application. However, several credit card companies offer credit cards specifically for bad credit, giving you a chance to rebuild and improve over time.
Types of Credit Cards for Bad Credit
There are two main types of credit cards for people with poor credit:
🔐 Secured Credit Cards
- Require a refundable security deposit (usually $200–$500)
- Credit limit often equals the deposit
- Designed to help build or rebuild credit
- Ideal for beginners or those with no credit history
🆓 Unsecured Credit Cards
- No security deposit required
- Higher interest rates and lower credit limits
- May come with annual or monthly fees
- Best for those with fair credit or improving scores
Best Credit Cards for Bad Credit in 2025 (U.S.)
Here are some top-rated cards to consider this year:
1. Discover it® Secured Credit Card
- Type: Secured
- Annual Fee: $0
- APR: 28.24% (variable)
- Benefits:
2% cashback at gas stations and restaurants
Free FICO® score access
Automatic review after 7 months for upgrade eligibility
- Why It’s Great: Excellent for rewards while rebuilding credit
2. Capital One Platinum Secured Credit Card
- Type: Secured
- Annual Fee: $0
- APR: 30.49% (variable)
- Benefits:
Low deposit ($49, $99, or $200) based on creditworthiness
Potential for credit limit increase without additional deposit
- Why It’s Great: Flexible deposit options for those on a tight budget
3. OpenSky® Secured Visa® Credit Card
- Type: Secured
- Annual Fee: $35
- APR: 25.64% (variable)
- Benefits:
No credit check required to apply
Reports to all three major credit bureaus
- Why It’s Great: Ideal for people with no credit or damaged credit
4. Mission Lane Visa® Credit Card
- Type: Unsecured
- Annual Fee: $0–$59 (based on credit)
- APR: 26.99% – 29.99% (variable)
- Benefits:
Fast pre-qualification with no credit score impact
Possible credit line increases with responsible use
- Why It’s Great: A solid option for those trying to move away from secured cards
5. Petal® 1 “No Annual Fee” Visa® Credit Card
- Type: Unsecured
- Annual Fee: $0
- APR: 25.24% – 34.74% (variable)
- Benefits:
No security deposit
Cashback rewards on select purchases
Modern mobile app with budgeting tools
- Why It’s Great: Ideal for rebuilding credit while earning rewards
How to Choose the Best Card for You
When comparing credit cards for bad credit, consider these factors:
| Factor | Why It Matters |
|---|---|
| Annual Fee | Some cards have $0 fees, while others may charge up to $75+ |
| APR (Interest Rate) | If you carry a balance, a lower APR will save you money |
| Credit Reporting | Choose a card that reports to all three major credit bureaus |
| Credit Limit | Some cards start with low limits, which can affect your credit utilization ratio |
| Rewards or Perks | Some secured cards now offer cashback, free credit scores, or upgrade options |
Tips to Use a Credit Card Responsibly
- Pay on time every month — even the minimum payment
- Keep balances low (ideally under 30% of your credit limit)
- Avoid new debt while rebuilding
- Check your credit reports regularly for errors or improvements
- Upgrade your card when eligible — some cards offer a path to unsecured status
Frequently Asked Questions (FAQs)
Q1: Can I get approved for a credit card with a credit score under 500?
Yes, but your best bet is a secured credit card that doesn’t require a credit check, like OpenSky®.
Q2: How long does it take to rebuild credit with a secured card?
You may start seeing improvements within 3–6 months of responsible usage.
Q3: Will applying for multiple cards hurt my credit?
Yes, multiple hard inquiries in a short time can negatively affect your score. Pre-qualify first when possible.
Q4: What happens to my deposit on a secured card?
If you pay your balance and close the account or upgrade, your deposit is refunded.
Final Thoughts
Rebuilding credit can feel overwhelming, but the right credit card can put you back on the path to financial stability. Whether you choose a secured credit card with no fees or an unsecured option with manageable terms, your focus should be on timely payments and keeping balances low.
In 2025, credit card companies are offering more flexible, tech-savvy, and reward-friendly solutions for people with bad credit. So take control today — and choose a card that helps you rebuild, improve, and succeed.
