Best Credit Cards for Bad Credit History in June 2021

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A credit score below 580 puts you in bad credit category. If you fall into this range, you are likely to have trouble getting a credit card. But this does not mean that all hope is lost. If you become authorized user to someone else’s account is not an option, there are several cards that are sold to people with less than a stellar credit history.

Protected cards usually the best choice for people with bad credit… These cards require a security deposit (often $ 200), which becomes your line of credit. If you use your secure card responsibly – on time and in full every month – you can start improve your credit rating

Once you install Fair (580-669) or good credit rating (670 to 739), you can upgrade to an unsecured card or apply for a new card. (Check the difference between secure and unprotected cards.)

Act now: Check your credit score for free

To choose breaks down the best credit cards for people with bad credit, so you can choose a card designed to help you build credit.

Best credit cards for bad credit history

Winner

Discover it® Secured Credit Card

On the secure Discover site

  • Awards

    Earn 2% cashback at gas stations and restaurants on combined purchases of up to $ 1,000 every quarter. Plus, automatically get 1% unlimited cashback on all other purchases.

  • Welcome Bonus

    Discover will match all cashbacks you earned at the end of the first year.

  • Annual fee

  • APR introduction

  • Regular annual interest rate

  • Balance transfer fee

    Commission for the transfer of the initial balance 3%, commission up to 5% for balance transfers in the future (see Terms and Conditions) *

  • Foreign transaction fee

  • Credit required

pros

  • Money back program
  • Generous welcome bonus
  • Discover automatically checks your credit card account starting at eight months to see if they can transfer you to an unsecured line of credit and get your deposit back.

Minuses

  • Cashback program caps income: 2% cashback at gas stations and restaurants for combined purchases up to $ 1000 every quarter, then 1%
  • Low line of credit prevents cardholders from charging high-value items or many expenses

Who is it for? IN Discover it® Secured Credit Card is a well-designed secure card that offers many of the benefits typically found in unsecured cards. Cardholders can earn cashback, receive a generous welcome bonus, use the card abroad without additional fees, and more – all without an annual fee.

Cardholders earn 2% cashback at gas stations and restaurants on combined purchases of up to $ 1,000 each quarter, followed by 1%. Plus, you can automatically earn 1% unlimited cashback on all other purchases. The welcome bonus is also unique: for new card members only in the first year, Discover will automatically match all cashbacks you earned in end your first year. If you earn $ 25 cashback at the end of the first year, Discover will give you another $ 25.

This card requires a $ 200 security deposit, which is pretty standard for secured credit cards… It stands out from the crowd because cardholders have a clear path to switch to an unsecured card (and get their deposit back). Eight months after you open an account, Discover will automatically check your credit card account to see if they can transfer you to an unsecured line of credit and get your deposit back. This saves you the guesswork when you will be eligible for an unsecured credit card.

Best for a low deposit

Secure Mastercard® from Capital One

Capital One’s Secure Mastercard® information has been independently compiled by CNBC and has not been verified or provided by the card issuer prior to publication.

  • Awards

    This card does not offer cashback, points or miles.

  • Welcome Bonus

  • Annual fee

  • April introduction

    Not applicable for purchases and balance transfers

  • Regular annual interest rate

    26.99% variable for purchases and balance transfers

  • Balance transfer fee

  • Foreign transaction fee

  • Credit required

pros

  • No annual fee
  • Refundable deposit of $ 49, 99 or $ 200
  • Get access to a higher line of credit after making your first five monthly payments on time
  • There is no commission for purchases made outside the United States.
  • Possibility to change the due date

Minuses

  • High variable annual interest rate of 26.99%
  • No bonus program
  • After submitting an application and making a deposit, it will take 2-3 weeks to receive a card.
  • Capital One periodically checks your account to see if it is possible to switch to an unsecured card, but unlike the secure Discover it® card, there is no clear time frame for when this will happen.

Who is it for? If you are looking for a secure low deposit card, Capital One® Secured Mastercard® is your best bet. This card has no annual fee and has no minimum security deposit of $ 49, 99, or $ 200 depending on your credit standing.

If you are eligible for a $ 49 or $ 99 deposit, you will still receive a $ 200 credit limit. This is a great feature considering that many secured cards require a $ 200 deposit to qualify for an equivalent line of credit.

Capital One also gives cardholders access to a higher credit limit after you make your first five monthly payments on time – a good incentive to keep your payment history on time (which is important when you’re trying to raise your credit rating). In addition to paying on time, make sure you pay in full as this card has a very high variable annual interest rate of 26.99%.

Best for low interest rates

DCU Visa® Platinum Secured Credit Card

DCU Visa® Platinum Secured Credit Card credit card information has been independently compiled by CNBC and has not been verified or provided by the card issuer prior to publication.

  • Awards

  • Welcome Bonus

  • Annual fee

  • April introduction

  • Regular annual interest rate

  • Balance transfer fee

  • Foreign transaction fee

  • Credit required

pros

  • No annual fee
  • 11.50% variable annual interest rate
  • No foreign transaction fees

Minuses

  • Minimum security deposit of USD 500, which is above average
  • Credit union membership required, which can cost a minimum of $ 10 if you are not eligible.
  • No bonus program
  • There are no clear deadlines for switching to an unprotected card

Who is it for? IN DCU Visa® Platinum Secured Credit Card offers one of the lowest interest rates for a secured card with no annual commission at a variable of 11.50%.

While we do not recommend keeping a balance on a monthly basis (especially when trying to create or repair a loan), it may be a good idea to opt for a secured card with a low interest rate if you have a history of having balances or are looking for a safety net.

A minimum deposit of US $ 500 above average is required to open the card. But it does have some additional perks, including travel insurance, waiver of the right to rent a car in the event of an accident, and extended warranty coverage.

Membership in the Digital Federal Credit Union is required, but anyone can join in one of several ways: if you are a friend or family member of a DCU member, live in select communities, work for select employers, or make a one-time contribution. ($ 10 total) to a participating organization.

Best without a credit check

OpenSky® Visa® Secured Credit Card

  • Awards

    This card does not provide cashback, points or miles.

  • Welcome Bonus

  • Annual fee

  • April introduction

  • Regular annual interest rate

    17.39% variable for purchases and balance transfers

  • Balance transfer fee

  • Foreign transaction fee

  • Credit required

pros

  • No credit check whether or not you have a credit rating

Minuses

  • 35 USD per year
  • 3% commission on purchases made outside the US.

Who is it for? If you have bad credit and have struggled to get approval for cards in the past, you may want to consider a card that does not perform a credit check. IN OpenSky® Visa® Secured Credit Card does not take your loan when you apply.

As with other secure cards, a minimum deposit of US $ 200 is required to open the card, and you can deposit up to US $ 3,000.

While this card is great for credit checks, it has an annual fee of $ 35, unlike the other cards mentioned above that do not have an annual fee. An annual fee may be appropriate if you are trying to increase your credit and have problems qualifying for other cards.

Best credit cards for bad credit history

Best for … Credit card
Winner Discover it® Secured Credit Card
Best for a low deposit Capital One® Secured
Best for low interest rates DCU Visa® Platinum Secured Credit Card
Best without a credit check OpenSky® Visa® Secured Credit Card

Our methodology

Editorial note: The opinions, analyzes, reviews or recommendations expressed in this article are solely owned by the Select editors and have not been reviewed, endorsed or otherwise endorsed by any third party.

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