Having bad credit doesn’t mean you’re locked out of using credit cards forever. Several financial institutions offer credit cards tailored for individuals with poor or limited credit histories. When used responsibly, these cards can help rebuild your credit, demonstrate financial reliability, and access better financial products in the future. 

How credit cards for bad credit work

Credit cards for bad credit typically require a security deposit or mandate specific fees to offset risk for issuers. You can compare options on websites like NerdWallet or Credit Karma, which showcase cards designed for rebuilding credit. These cards often report your payment behavior to the credit bureaus—translating consistent on-time payments into credit score improvement.

– Secured cards: You deposit collateral (e.g. $200–1,000) which becomes your credit limit.

– Unsecured “subprime” cards: No deposit required, but interest rates and fees tend to be higher.

– Store cards: Easier approval in specific retailers, but usually limited to that store’s purchases.

– Credit-builder cards: Designed for very limited credit history, with low limits and guaranteed approval based on income.

– Upgrade paths: Some cards allow you to graduate to unsecured status once you've demonstrated responsible behavior.

What to look for in a bad credit credit card

With so many options, focusing on key features ensures you choose a card that helps, not hurts, your credit recovery. Here are top criteria worth evaluating:

– Annual fee: Some cards waive the fee, while others charge $25–$100. Avoid exorbitant fees when possible.

– Interest rate (APR): Expect high APRs (20–30%+); carry no balance if you can.

– Security deposit amount: Low deposit or refundable deposit is ideal.

– Credit reporting: Ensure the card reports to all three major credit bureaus (Equifax, Experian, TransUnion).

– Upgrade options: Check whether you can graduate to a better card after good use.

– Additional fees: Watch for activation, monthly maintenance, and foreign transaction fees.

Top credit cards for bad credit (2025 options)

Here are some credit card options available in 2025 that are more forgiving toward bad credit. Always verify eligibility and terms before applying:

– Capital One Platinum Secured: No annual fee and the opportunity to adjust your deposit based on credit behavior.

– Discover it® Secured: Earns rewards (e.g. 2% at restaurants/gas) and matches your rewards in the first year.

– OpenSky® Secured Visa: No credit check needed for approval, though it requires a deposit.

– Milestone® Gold Mastercard: Unsecured option with higher fees but no security deposit required.

– Petal® 2 “Cash Back, No Fees”: Builds credit using bank account history, not just credit scores.

How to use a bad-credit card responsibly

Owning a credit card is only helpful if used wisely. The following practices help you rebuild credit instead of damaging it further:

– Make payments on time: Late payments damage credit history and incur late fees.

– Keep utilization low: Use less than 30% of your available credit to improve score.

– Pay in full: Avoid carrying a balance to minimize interest charges.

– Set reminders or auto-pay: Automating payments helps avoid missed due dates.

– Monitor credit reports: Use free services like AnnualCreditReport.com to track progress.

When to upgrade your credit card

Once your credit score improves, it’s wise to move to better cards with lower rates and rewards. Watch for these signs:

– Consistently paying on time for 12–18 months

– Credit utilization under 10%

– Increasing your credit score above 620–650 thresholds

– Offers from issuers for upgrades or reviews based on performance

Final thoughts

Credit cards for bad credit offer a structured path to rebuilding your financial reputation—if used carefully. Choose a card with reasonable fees and guaranteed credit bureau reporting, then follow disciplined habits like making timely full payments and keeping balances low. Over time, you’ll demonstrate your creditworthiness and unlock access to more favorable financial opportunities. Need help comparing specific card offers in your country? I can help with that too.