Best Credit Cards for Bad Credit: Secured Cards and Safe Ways to Rebuild
Which cards approve people with damaged credit, what they really cost and a step-by-step plan to rebuild your score without falling into fee traps.
Key takeaways
- Secured credit cards are the most reliable way back: your refundable deposit lowers the issuer's risk, so approval is much easier.
- Cards for bad credit carry high interest rates, often around 28% to 40%. Never carry a balance on them.
- Avoid cards with high application, monthly or "program" fees; good rebuilding cards cost $0 to $39 a year.
- On-time payments and low balances can noticeably improve a score within 6 to 12 months.
Missed payments, a collection account or a past bankruptcy can make it hard to get approved for a regular credit card. The good news: credit scores are built on recent behavior, and a well-chosen card is one of the fastest ways to show lenders that you are a reliable borrower again. The bad news: the market for "bad credit" cards is full of expensive products. This guide shows the difference.
Please note
Card details below were published by issuers and major review sites in September and October 2026. They are examples, not personal recommendations, and we have no affiliate relationships. Approval is never guaranteed.
How secured cards work
With a secured card, you pay a refundable security deposit, and the issuer gives you a credit line, usually equal to your deposit. You use it like any credit card, and your payments are reported to the credit bureaus. After months of responsible use, many issuers review your account to raise your limit or turn it into a regular unsecured card and refund your deposit. If you close the account in good standing, you get the deposit back.
A secured card is not a debit card: you still receive a bill, and if you do not pay in full, you pay interest.
US cards for bad or rebuilding credit
| Card | Annual fee | Deposit | Purchase APR | Highlights |
|---|---|---|---|---|
| Capital One Platinum Secured | $0 | $49, $99 or $200 for a $200 limit | 29.24% variable | Automatic review for a higher line in as little as 6 months |
| Capital One Quicksilver Secured | $0 | From $200 | 28.99% variable | 1.5% cash back; path to the unsecured Quicksilver |
| OpenSky Plus Secured Visa | $0 | From $300 | 28.24% variable | No credit check |
| Discover it Secured | $0 | From $200 | Variable | 2% at gas stations and restaurants (up to $1,000 a quarter), 1% else, Cashback Match. Applications were paused in June 2026 during Capital One's changes; check current availability. |
| Chime Card | $0 | No security deposit | No interest | No credit check; requires a Chime checking account and works differently from a classic credit line, so read Chime's terms |
APRs are those reported by CNBC Select in September 2026 and change with market rates.
If you have fair credit rather than bad credit
If your score is in the high 500s to 600s, unsecured cards such as the Capital One QuicksilverOne ($39 annual fee, 1.5% cash back) may approve you without a deposit. Compare the annual fee with the deposit you would otherwise tie up.
UK credit builder cards
In the UK, "credit builder" cards serve the same purpose. They are unsecured but have low starting limits and high rates.
| Card | Representative APR | Typical starting limit |
|---|---|---|
| Tesco Bank Foundation Credit Card | 27.5% | From £200 |
| Capital One Classic | 34.9% | Low starting limit, increases with responsible use |
| Vanquis Credit Builder | 37.9% | £250–£2,500 |
| Aqua Classic | 39.9% | £250–£1,500 |
Representative APRs as reported in September 2026. Use eligibility checkers, which run a soft search that does not affect your credit file, before applying.
Fees and traps to avoid
- High upfront or monthly fees. Some subprime cards charge application, processing, monthly maintenance or "program" fees that eat into a small limit before you have bought anything.
- Carrying a balance at 30% to 40% APR. On a $500 balance, 30% APR costs about $12.50 a month.
- "Guaranteed approval" offers from unknown companies, especially if they ask for upfront payments.
- Credit repair companies that promise to remove accurate negative information. Only incorrect items can be removed, and you can dispute those yourself for free.
- Late fees: after a court struck down the CFPB's planned $8 cap in 2025, typical late fees are back around $30 to $41.
A 12-month plan to rebuild your credit
- Month 0: Get your free credit reports at AnnualCreditReport.com and dispute any errors with the bureaus.
- Month 1: Open one secured or credit builder card. Avoid multiple applications.
- Every month: Put one small recurring bill on the card and pay the full statement balance automatically.
- Keep utilization under 30%, ideally under 10%. On a $200 limit, that means a statement balance below $60, ideally around $20.
- Months 6–12: Watch for automatic credit line reviews or an upgrade to an unsecured card.
- After 12 months: With a clean record, you may qualify for a no-annual-fee card with rewards. See best cards with no annual fee.
Negative items fade over time: most late payments and collections stay on US credit reports for seven years, but their impact shrinks as you add positive history. More strategies are in our guide to building credit.
Frequently asked questions
Can I get a credit card with a 500 credit score?
Yes, usually a secured card. Some secured cards, such as the OpenSky Plus, do not check your credit at all.
Do secured cards help build credit?
Yes, as long as the issuer reports to the major credit bureaus, which the major secured cards do. On-time payments and low balances build your history just like a regular card.
Will I get my security deposit back?
Yes, when you close the account with no balance or when the issuer upgrades you to an unsecured card.
How fast can I rebuild bad credit?
Many people see meaningful improvement within 6 to 12 months of on-time payments and low utilization. Serious items like bankruptcies take longer to lose their impact.
Is a prepaid card the same as a secured card?
No. Prepaid cards do not report to credit bureaus and do not build credit.
