Managing finances with a bad credit score can be challenging, especially when it comes to qualifying for a credit card. However, there are credit card options in the USA specifically designed for individuals with poor or limited credit history. This guide explores the best credit cards for bad credit in 2025, highlighting features, pros, cons, and how you can use them to rebuild your credit.
What Is Considered Bad Credit?
Understanding Credit Score Ranges
Your credit score is a crucial factor that determines your creditworthiness. Here’s how credit scores are generally categorized:
- Excellent: 750 – 850
- Good: 700 – 749
- Fair: 650 – 699
- Poor/Bad: 300 – 649
If your credit score is below 650, you may fall into the “bad credit” category, which can affect your ability to get loans, rent apartments, or qualify for premium credit cards.
How Can a Credit Card Help Improve Bad Credit?
Building Credit with Responsible Use
Credit cards designed for bad credit often report to all three major credit bureaus—Experian, Equifax, and TransUnion. Responsible use, like paying on time and keeping balances low, can significantly improve your credit over time.
Types of Credit Cards for Bad Credit
1. Secured Credit Cards
These require a refundable security deposit that acts as your credit limit. They are the most accessible for people with bad credit.
2. Unsecured Credit Cards
Offered without a deposit, but often come with higher fees and interest rates. A few good unsecured options are available for those with bad credit.
3. Store Credit Cards
Retail credit cards can be easier to qualify for and help build credit, but they usually come with higher interest rates.
Top 10 Best Credit Cards for Bad Credit in the USA (2025)
1. Discover it® Secured Credit Card
Features:
- No annual fee
- 2% cashback at gas stations and restaurants (up to $1,000 quarterly)
- Reports to all three credit bureaus
- Free access to FICO score
Pros:
- Cashback rewards
- Graduation to unsecured card available
Cons:
- Requires a minimum deposit of $200
2. Capital One Platinum Secured Credit Card
Features:
- $0 annual fee
- Variable security deposit starting at $49
- Access to higher credit line after on-time payments
Pros:
- Low deposit requirement
- No foreign transaction fees
Cons:
- No rewards program
3. OpenSky® Secured Visa® Credit Card
Features:
- No credit check required
- Reports monthly to credit bureaus
- $35 annual fee
Pros:
- Easy approval with poor credit
- No credit history required
Cons:
- No upgrade path to unsecured card
4. Credit One Bank® Platinum Visa® for Rebuilding Credit
Features:
- Unsecured card
- 1% cashback on eligible purchases
- Free credit score tracking
Pros:
- No deposit required
- Rewards program
Cons:
- Annual fee varies ($75 – $99)
- High APR
5. Chime Credit Builder Visa® Secured Credit Card
Features:
- No credit check
- No annual fee or interest
- Connects to Chime Spending Account
Pros:
- No fees
- Safe and controlled usage
Cons:
- Requires Chime bank account
6. Self – Credit Builder Account + Secured Visa® Credit Card
Features:
- Combine savings plan with a secured credit card
- Build credit and savings simultaneously
Pros:
- Helps establish savings
- Reports to all bureaus
Cons:
- Setup takes longer
7. Secured Mastercard® from Capital One
Features:
- $0 annual fee
- Credit line increases with responsible usage
Pros:
- Easy account management
- Reports to all credit bureaus
Cons:
- No rewards
8. Mission Lane Visa® Credit Card
Features:
- Unsecured card
- No hidden fees
- Credit limit increases possible
Pros:
- Straightforward terms
- Pre-qualification available
Cons:
- Interest rates can be high
9. Milestone® Mastercard®
Features:
- Designed for rebuilding credit
- Unsecured card
- Monthly reporting to credit bureaus
Pros:
- No deposit needed
- Fast application process
Cons:
- Annual fee up to $99
10. Reflex® Platinum Mastercard®
Features:
- Initial credit limit up to $1,000
- Monthly credit bureau reporting
Pros:
- Soft credit inquiry for pre-qualification
- Possibility of higher limits
Cons:
- High fees and interest rates
What to Look for in a Credit Card for Bad Credit
Key Factors to Consider
- Annual Fees: Look for cards with low or no annual fees.
- APR (Interest Rates): Lower APRs are better if you plan to carry a balance.
- Security Deposit: For secured cards, check how much deposit is required.
- Credit Reporting: Ensure the card reports to all three credit bureaus.
- Upgrade Options: Some cards offer a path to unsecured credit.
How to Improve Your Credit with a Credit Card
Best Practices
- Pay on Time: Late payments hurt your score.
- Keep Balances Low: Aim to use less than 30% of your credit limit.
- Avoid Multiple Applications: Each inquiry affects your score.
- Monitor Your Credit: Use free tools to track your progress.
Final Thoughts: Rebuilding Credit with the Right Card
Bad credit doesn’t have to hold you back. With the right credit card and responsible use, you can rebuild your credit score, gain financial independence, and eventually qualify for premium financial products.
In 2025, options for credit cards for bad credit are more user-friendly than ever—featuring no annual fees, rewards, and even graduation paths to better cards. Choose wisely and commit to improving your financial habits.
FAQs About Credit Cards for Bad Credit
Q1. Can I get a credit card with a 500 credit score?
Yes, many secured cards and some unsecured cards accept applicants with scores around 500.
Q2. How long will it take to improve my credit?
You can see improvement in as little as 3–6 months with consistent on-time payments and low credit utilization.
Q3. Will applying for a card hurt my score?
Yes, slightly. Each application causes a hard inquiry which can lower your score temporarily.
Q4. Can I upgrade my secured card?
Some cards like Discover and Capital One offer upgrades to unsecured cards after a period of responsible use.
Disclaimer: Credit card terms can change frequently. Always check the official website for the latest information and eligibility criteria.