Best Credit Cards for Bad Credit: Apply Smart Today

If your score is below roughly 630, you can still get the right card to rebuild credit and move toward better rates and rewards.

This guide shows you exactly which types of cards to target, which to avoid, and how to improve approval odds while keeping costs under control.

Start here: what to prioritize with bad-credit applications

When you’re rebuilding, your goal isn’t fancy perks—it’s approval, predictable costs, and fast credit-building traction. Look for cards that accept lower scores and report to all three bureaus (Experian, Equifax, TransUnion). That reporting turns on-time payments into score progress.

Next, weigh total cost. Some cards advertise easy approvals but bury you in setup and monthly fees; others ask for a refundable security deposit instead of junk charges. Favor the option that keeps fees minimal while helping you graduate to a better product.

Finally, use prequalification tools when available. A soft-pull “prequal” shows your approval odds without hurting your score, helping you avoid applications that would likely be declined.

Primary goal: build history and reduce costs—not earn rewards right away.
Must-have: reports to all three bureaus, clear upgrade path, fair fees.
Nice-to-have: autopay, credit-limit increase reviews, free credit score.

Unsecured vs. secured credit cards

Secured cards: fastest route to predictable approval

What they are: You provide a refundable cash deposit (often $200–$500+) that typically becomes your credit limit. Because the deposit reduces the lender’s risk, secured cards are usually available to consumers with damaged or limited credit.

Why they can be best: Low or no annual fee options exist, and many secured cards graduate to unsecured after 6–12 months of on-time payments. When you graduate, your deposit is returned, and you often keep the same account (preserving credit age).

What to check: Minimum and maximum deposit amounts, annual fee, whether the card reports as a regular revolving account, and a clear path to graduation and limit increases.

Unsecured cards: no deposit, but read the fee table carefully

What they are: Traditional credit cards that don’t require a deposit, sometimes marketed for “fair,” “limited,” or “rebuilding” credit. Approval can be possible under 630, but terms vary widely.

Why they can work: No cash is tied up as a deposit, and some issuers offer reasonable annual fees and automatic credit-limit reviews.

What to watch: Subprime unsecured cards can layer on a program fee, monthly maintenance fee, and even setup fees that eat into your limit. Prefer cards with a straight annual fee (or none), no setup charges, and clear reporting practices.

Fees and terms: what’s normal vs. what’s excessive

With credit cards for bad credit, reasonable costs are possible—if you compare carefully. Here’s how to read the fine print and avoid traps.

Annual fee: $0–$49 is common on many entry-level products; higher can be acceptable if there’s a clear upgrade path and no other junk fees.
Setup/program fees: Avoid cards that charge one-time “processing,” “program,” or “setup” fees just to open the account.
Monthly maintenance fees: These can add $60–$120 per year on top of an annual fee. Prefer $0 monthly fees.
APR: Expect higher rates while rebuilding. Plan to pay in full each month so APR is irrelevant.
Late/penalty fees: Policies vary by issuer and card; enable autopay to prevent them.
Foreign transaction fee: Not critical unless you travel; 3% is common.

Pro tip: If a secured card with a refundable deposit beats an unsecured card loaded with fees, the secured route is usually the smarter financial move.

Deposit requirements and how to size your limit

Typical deposits: $200–$500 to start; some issuers allow $1,000 or more. The deposit sits in a custodial account and is fully refundable when you close in good standing or “graduate.”

How to choose your amount: Your credit utilization ratio (balance ÷ credit limit) strongly influences scores. If you can afford it, a higher deposit can make it easier to keep utilization under 10–30% while using the card normally.

Adding to your deposit: Some issuers let you increase the deposit later to raise your limit. Ask whether increases trigger a hard pull and how soon they’re eligible for review.

Credit reporting practices that matter

Credit-building works only if your activity is reported. Confirm these points before applying:

Reports to all three bureaus: This is non-negotiable; some niche cards report to only one or two.
Reports as a revolving credit card: Most secured cards do; a few specialty products may not. You want a standard revolving tradeline for scoring models.
Monthly reporting cadence: Ask when the issuer reports so you can pay down before the statement cuts to keep utilization low.
Upgrade policy: Look for reviews at 6–12 months, automatic credit-limit increases, and graduation without a new account number (helps your average age of accounts).

Smart application strategy: avoid repeated rejections

1) Pull and fix your credit reports first. Review all three reports for errors, duplicate collections, or outdated negatives. Dispute inaccuracies and consider paying small collections you can resolve quickly—cleaner reports boost approval odds.

2) Use soft-pull prequalification. Many issuers offer a prequal form that estimates approval odds without a hard inquiry. Only submit a full application when prequalified or when an issuer clearly states they consider lower scores.

3) Time applications strategically. Space hard inquiries, especially after a denial. Address the reason codes from your adverse action letter (e.g., high utilization, recent delinquency) before trying again.

4) Match your profile to the product. Fresh out of bankruptcy or with thin credit? Start with a secured card or a credit-builder loan rather than subprime unsecured cards with high fees.

5) Leverage relationships. Your own bank or credit union may be more flexible, especially if you set up direct deposit or maintain savings—ask about member-only secured cards with low fees and clear graduation.

6) Apply for one or two targeted cards—not five. Shotgunning applications triggers multiple hard pulls and rejections. Focus on the card type that best fits your situation and budget.

Using the card to rebuild (not just spend)

Keep utilization low: Treat the card as a tool. Put a small recurring bill on it and pay in full each month. Aim to have 1–9% of your limit showing when the statement closes.

Automate on-time payments: Turn on autopay at least for the statement minimum, then manually pay in full to avoid interest.

Grow limits responsibly: After 6–12 months of perfect payments, request a credit-limit increase or graduation to unsecured. Avoid carrying balances to “prove” anything—on-time payments are what matter.

Diversify later: Once scores improve into the mid-600s and above, consider a second card or a credit-builder loan to strengthen your mix, but only if you can manage it flawlessly.

Quick comparison checklist before you apply

Does it accept scores under ~630 and report to all three bureaus?
Secured or unsecured—what’s the total first-year cost (fees + interest if you don’t PIF)?
If secured: deposit range, refundable terms, and graduation timeline.
If unsecured: no setup or monthly maintenance fees; fair annual fee.
Clear path to higher limits and/or an upgrade without a new account.
Prequalification available with a soft pull.
Tools: autopay, due-date selection, free credit score, mobile app quality.

Who this approach helps

Credit-building beginners: A low-fee secured card turns on-time payments into positive history quickly.

Recovery-focused consumers: After late payments, defaults, or bankruptcy, a secured card (or a carefully chosen unsecured rebuilder) can re-establish trust and pave the way to prime cards.

New-to-credit young adults: Start with a secured card or a student card that accepts limited history; use it as a growth tool, not a spending boost.

The bottom line

For most people under ~630, the best path is a low-fee secured card that reports to all three bureaus and offers a clear upgrade path. If an unsecured option avoids junk fees and offers soft-pull prequalification, it can work too. Either way, keep utilization low, pay on time every time, and you’ll unlock better terms faster than you think.