Having a bad credit score in the USA can significantly affect your financial flexibility. Whether it’s renting an apartment, applying for a car loan, or even getting a job in certain sectors, your credit score matters. A credit score below 580 is generally considered poor. But the good news is — there are credit cards designed specifically for individuals with bad or limited credit.
In this blog, we’ll explore the Top 5 Credit Cards for Bad Credit in the USA, including their features, pros, cons, and who they’re best for.
What to Look for in a Credit Card for Bad Credit
Before jumping to the list, let’s understand what features you should consider while choosing a credit card with bad credit:
1. Reports to All Three Credit Bureaus
Ensure the card reports your payment activity to Experian, Equifax, and TransUnion.
2. Low or No Annual Fee
Some cards charge high fees — avoid those unless the benefits outweigh the costs.
3. Upgrade Path
Choose a card that gives you the option to upgrade to an unsecured card as your credit improves.
4. Security Deposit (for secured cards)
Many cards for bad credit are secured, meaning you need to put down a refundable deposit. Check the minimum deposit requirement.
Top 5 Credit Cards for Bad Credit in the USA (2025)
1. Discover it® Secured Credit Card
Best for: Rewards + Credit Building
Key Features:
- Annual Fee: $0
- Minimum Security Deposit: $200
- Rewards: 2% cashback at gas stations and restaurants (up to $1,000/quarter), 1% on all other purchases
- Reports to all 3 bureaus
Pros:
- Cashback rewards, even as a secured card
- Free FICO® credit score access
- Automatic reviews starting at 7 months for upgrade to an unsecured card
Cons:
- No option for higher cashback after maxing quarterly limit
Why We Recommend It:
It’s rare to find cashback rewards on a secured card. Discover’s toolset and automatic upgrade path make it an excellent choice for anyone looking to build credit while earning.
2. Capital One Platinum Secured Credit Card
Best for: Low Security Deposit
Key Features:
- Annual Fee: $0
- Security Deposit: As low as $49 (based on creditworthiness)
- Credit Limit: Can increase with responsible use
- Reports to all 3 bureaus
Pros:
- Extremely low initial deposit possible
- No foreign transaction fees
- Access to Capital One’s CreditWise tool
Cons:
- No rewards program
- Initial credit limit may be low
Why We Recommend It:
Great option for beginners or those on a tight budget. Capital One may offer you a higher credit line after 6 months of on-time payments.
3. OpenSky® Secured Visa® Credit Card
Best for: No Credit Check Requirement
Key Features:
- Annual Fee: $35
- Security Deposit: Minimum $200
- No Credit Check
- Reports to all 3 bureaus
Pros:
- Doesn’t require a credit check to apply
- Great for rebuilding credit after bankruptcy
- Fast approval process
Cons:
- Charges an annual fee
- No option to upgrade to unsecured card
Why We Recommend It:
If you’ve been denied due to past financial mistakes, OpenSky is a solid option because it approves without checking your credit score.
4. Self – Credit Builder Account + Secured Visa® Credit Card
Best for: Saving + Credit Building
Key Features:
- Annual Fee: $25
- Security Deposit: Comes from your Credit Builder account
- Credit Check: Not required
- Reports to all 3 bureaus
Pros:
- Builds savings and credit at the same time
- You choose the amount to save (starting at $25/month)
- Access to Self’s mobile app and credit tracking
Cons:
- Takes time to access the secured card (need to first build savings)
- No rewards program
Why We Recommend It:
Unlike other cards, Self helps you build a savings habit and then gives you access to a credit card — perfect for those starting completely fresh.
5. Mission Lane Visa® Credit Card
Best for: Unsecured Credit Card for Bad Credit
Key Features:
- Annual Fee: $0–$59 (based on credit)
- No Security Deposit Required
- Quick Prequalification with soft pull
- Reports to all 3 bureaus
Pros:
- Unsecured credit card
- Potential for credit line increases
- Easy prequalification without affecting your credit score
Cons:
- Annual fee may apply based on your profile
- No rewards program
Why We Recommend It:
This is a rare unsecured credit card that accepts applicants with low credit scores. If you want to skip the deposit and still build credit, this is an excellent option.
Comparison Table: Top 5 Credit Cards for Bad Credit
| Credit Card Name | Type | Annual Fee | Rewards | Deposit Required | Best Feature |
|---|---|---|---|---|---|
| Discover it® Secured | Secured | $0 | Yes | $200 | Cashback + Upgrade Path |
| Capital One Platinum Secured | Secured | $0 | No | As low as $49 | Low Deposit |
| OpenSky® Secured Visa® | Secured | $35 | No | $200 | No Credit Check |
| Self + Secured Card | Secured | $25 | No | From Savings Plan | Credit + Savings |
| Mission Lane Visa® | Unsecured | $0–$59 | No | None | No Deposit Needed |
How to Use These Cards to Improve Your Credit Score
1. Always Pay on Time
Payment history makes up 35% of your credit score. Even one missed payment can hurt your score.
2. Keep Utilization Low
Try to use less than 30% of your credit limit. For example, if your limit is $300, try not to spend more than $90 at a time.
3. Use the Card Regularly
Make small, manageable purchases like gas or groceries. This helps establish a consistent payment history.
4. Monitor Your Credit
Use free tools like CreditWise (Capital One) or Discover Scorecard to track your FICO score progress.
FAQs
Q1: Can I get a credit card with a credit score under 500?
Yes, especially secured cards like OpenSky or Self don’t even require a credit check.
Q2: How long does it take to rebuild credit?
Typically, within 3 to 6 months of responsible use, you’ll see improvement. Full recovery can take 12–18 months depending on the situation.
Q3: Can I get an unsecured card later?
Absolutely. Many cards like Discover and Capital One offer automatic upgrade reviews.
Q4: Will these cards help me after bankruptcy?
Yes. Cards like OpenSky and Self are great post-bankruptcy options.
Conclusion: Choose the Right Card, Rebuild the Right Way
Having bad credit isn’t the end — it’s just the beginning of a comeback. With the right tools, like the credit cards listed above, you can rebuild your credit, gain financial confidence, and unlock better opportunities.
Whether you’re starting fresh or recovering from past mistakes, there’s a card on this list that fits your needs. Just remember to spend responsibly, pay on time, and monitor your progress.