Experian and CreditMatch logo

Best Credit Cards for Bad Credit of 2023

At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Some of the best credit cards for people with bad or poor credit are unsecured and secured cards with low annual fees. Often, these cards can serve as stepping stones, giving you access to credit now and—with responsible use—helping you improve your credit scores. You may be able to upgrade or move on to better cards later. Getting a credit card with bad credit and managing it properly by making on time payments may be a good approach to building credit.

3 Partner Offers

Our Picks for the Best Credit Cards for Bad Credit
AvantCard

AvantCard

30.24% Variable APR

No deposit required

$59 annual fee

The OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card

22.64% Variable APR

$200 minimum refundable deposit

$35 annual fee

Credit One Bank® Secured Card

Credit One Bank® Secured Card

28.99% Variable APR

$200 minimum refundable deposit

No annual fee

AvantCard

The AvantCard is an unsecured credit card for people who are new to credit or rebuilding their credit. The card isn't available to residents of Hawaii, Iowa, Massachusetts, Vermont, West Virginia or Wisconsin. But it could be a good option if you can qualify.

One of the biggest benefits of the AvantCard is that you can use it to build credit without having to pay a security deposit. You also won't have to pay foreign transaction fees when using the card, which can save you money if you're outside the country or ordering items from other countries online. There is a $59 annual fee.

Read full review
Apply

on Avant's website

Rates and Fees

Poor - Good, Rebuilding

APR

30.24% Variable

Intro APR

N/A

Rewards

None

Annual Fee

$59

Card Details
  • No deposit required
  • Report to all three major credit bureaus
  • No hidden fees
  • We may periodically review your account for credit line increases
  • Fast and easy application process
  • Help strengthen your credit history with responsible use
  • Zero fraud liability for unauthorized charges. See the Mastercard Guide to Cardholder Benefits here (https://www.avant.com/cardholder-benefits/)
  • Checking your eligibility does not affect your credit score
  • Avant branded credit products are issued by WebBank
  • Disclosure: If you are charged interest, the charge will be no less than $1.00. Cash Advance Fee: 3%, Min: $10.

The OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card is a secured card with a minimum $200 refundable security deposit (which becomes your credit line) and $35 annual fee. The card doesn't offer any rewards and it won't be a good fit for everyone. There's no credit check required, however, which means it could be a good option if you're having trouble getting approved for other cards. And it reports payments to all three credit bureaus (Experian, TransUnion and Equifax), helping you build credit on all three credit reports.

The OpenSky® Secured Visa® Credit Card is also one of the few secured cards available to people who don't have or want a bank account. Instead of making an electronic transfer, you can choose to send the deposit with a Western Union wire transfer, or mail a check or money order.

Read full review

The OpenSky® Secured Visa® Credit Card

Apply

on Capital Bank N.A.'s website

Rates and Fees

Poor, New to Credit, Rebuilding

The OpenSky® Secured Visa® Credit Card

APR

22.64% Variable

Intro APR

N/A

Rewards

None

Annual Fee

$35

Card Details
  • No credit check to apply. Zero credit risk to apply!
  • Looking to build or rebuild your credit? 2/3 of cardholders receive a 48+ point improvement after making 3 on-time payments
  • With an 87% average approval rate for the past 6 months, OpenSky gives everyone an opportunity to improve their credit
  • Extend your $200 credit line by getting considered for an unsecured credit line increase after 6 months - no additional deposit required!
  • Get free monthly access to your FICO score in our mobile application
  • Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and Transunion
  • Fund your card with a low $200 refundable security deposit to get a $200 credit line
  • Choose the due date that fits your schedule with flexible payment dates
  • Fund your security deposit over 60 days with the option to make partial payments
  • Join over 1.2 million cardholders who’ve used OpenSky to build their credit

Credit One Bank® Secured Card

The Credit One Bank® Secured Card is a good no-annual-fee secured card that also offers a rewards program. You'll earn 1% cash back rewards on eligible gas and grocery purchases as well as mobile phone, internet, cable and satellite TV services. Terms apply.

The standard $200 security deposit applies when you open this card.

Credit One Bank® Secured Card

Apply

on Credit One Bank's website

Terms Apply

Rates and Fees

Poor - Exceptional

Credit One Bank® Secured Card

APR

28.99% Variable

Intro APR

N/A

Rewards

1% Cash Back on Eligible Gas, Grocery Purchases and Mobile, Internet, Cable and Satellite TV Services

Annual Fee

$0

Card Details
  • Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services, terms apply
  • With $0 Fraud Liability, you won’t be responsible for unauthorized charges
  • Looking to rebuild credit? We report to the major credit bureaus monthly
  • Earn interest on your required security deposit account (minimum deposit $200)
  • Never miss an account update with customizable text and email alerts
  • Manage your account on-the-go with the Credit One Bank mobile app
  • Show off your personality by selecting from a variety of card designs, a fee may apply

How to Decide Which Card Is Right for You

Picking the right card depends on which cards you'll likely be able to get and why you want to get a credit card.

If you primarily want a credit card to improve your credit, the exact card doesn't matter as much as how you use it. Credit scores don't distinguish between secured and unsecured credit cards, and cards' rewards programs, fees and interest rates don't impact credit scores.

Make sure that the card issuer reports your account to all three major credit bureaus—most major issuers do—and then only make a small purchase each month before paying the bill in full. Also, make at least your minimum payment on time to avoid late payments, which can lead to fees and hurt your credit.

Credit building aside, if you want a card for everyday use and will likely be able to pay the bill in full, a card with a rewards program could be a good fit. But if you want a card for emergency expenses that will likely take some time to pay down, a low interest rate or promotional offer may be more important than rewards.

What Is the Difference Between a Secured and Unsecured Card?

In terms of how you use the card, secured and unsecured cards are identical in many ways. The main difference is that you need to provide the card issuer a security deposit to get a secured card; unsecured cards don't require a security deposit.

There's generally a minimum deposit requirement for secured cards, such as $200, and your card's credit limit will often be based on your security deposit. You may be able to provide a larger deposit if you want a higher limit. Just keep in mind that you might not get the security deposit back until you close the account or the card issuer upgrades you to an unsecured card (not all cards have this option).

Secured cards are sometimes a good option for people who have bad credit. Whichever type of card you choose, make sure it reports payments to the credit bureaus to help you build credit. And with either type of card, avoid using a large portion of your card's credit limit if possible and always pay your bill on time. Paying your bill in full each month will also help you avoid paying interest.

How to Improve Your Credit Before Applying for a Credit Card

There are different steps you can take to improve your credit before applying for a new credit card. Depending on why you have bad or poor credit in the first place, it could take some time to move into a new credit score range (such as fair or good). However, here are some actions that can help:

  • Pay down current credit card debt.
  • Get a new credit card, only use a small portion of its credit limit and make at least the minimum payment on time.
  • Open a credit-builder loan and make on-time monthly payments.
  • Rehabilitate defaulted federal student loans.
  • Use Experian Boost®ø to add on-time phone, utility and streaming service payments to your Experian credit report.

You may also want to review your credit reports for erroneous negative marks. Disputing errors could get the negative marks corrected or deleted, which could help your credit scores.

What to Do if You're Denied for a Credit Card

If your credit card application is denied, the card issuer will send you an adverse action letter explaining why. You have the right to get a free copy of your credit report to get a better understanding of why you were denied.

You may also want to call the issuer and ask why your application was denied. In some cases, the decision can be reversed. But often, you may need to improve your creditworthiness before trying again later—or try to get a different credit card if you want one now.

A few card issuers might let you apply with a cosigner, which could help your chances. Or, if you initially tried for an unsecured card, you could apply for a secured card instead. You can also try to get prequalified for a credit card, which will tell you if you're likely to get approved or denied without impacting your credit scores.

Get Matched With Credit Cards

Finding your next credit card could be difficult, particularly when a low credit score limits your options. We've highlighted some of the top picks above for people with bad or poor credit. You can also use Experian CreditMatch™ credit card marketplace to get matched with our partners' cards and offers, filter options based on your preferences and create a side-by-side comparison of your top picks.