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Best Credit Cards for Bad Credit 2020

Best Credit Cards for Bad Credit 2020

Have bad credit? Here are the top offers designed to help you rebuild your credit and improve your score. Make sure to pay on time and keep a low balance (relative to your credit limit) and this may improve your credit report each month. New to credit cards? See offers from our partners for students or those with no credit. Looking for more credit card options? Best Credit Cards for Bad Credit 2020

We believe the best credit cards for bad credit are secured cards. With these cards, you provide a security deposit, which protects the issuer in case you don’t pay. (When you close or upgrade the account, you can get your deposit back.) The deposit reduces the risk, making secured cards some of the easiest cards to get. Approval isn’t guaranteed, though — you still need to show you have income, and bankruptcies or other serious problems on your credit report can cause you to be denied.

First Progress Platinum Prestige Mastercard® Secured Credit Card – Best Credit Cards for Bad Credit 2020

Here is First Progress’ lowest APR secured card, but it charges a hefty $49 annual fee. A low APR is a valuable feature in an unsecured card, but it doesn’t make sense to carry a balance on a secured card; you’re paying interest to the bank on your own money. It’s a better idea to use a secured card with a lower annual fee to build your credit.

Pros

  • No minimum credit score or history required
  • Monthly Reporting to all 3 Major Credit Bureaus
  • Low APR

Cons

  • $49 annual fee
  • 3% foreign transaction fee
  • No rewards program
First Progress Platinum Prestige Mastercard® Secured Credit Card

REGULAR APR

9.99% (Variable)

ANNUAL FEE

$49

WELCOME BONUS

None

CREDIT SCORE

Bad Credit

OpenSky® Secured Visa® Credit Card

OpenSky offers a solid path to rebuilding credit, with no credit check or bank account required and a low $200 minimum security deposit.

Pros

  • No credit check
  • Low minimum security deposit of $200 to open account
  • No bank account required

Cons

  • 3% foreign transaction fee
  • $25 credit-limit-change fee after the first year
  • $35 annual fee

OpenSky® Secured Visa® Credit Card

 

REGULAR APR

18.89% (variable)

ANNUAL FEE

$35

WELCOME BONUS

None

CREDIT SCORE

No credit check

Indigo® Platinum Mastercard®

Indigo’s path to rebuilding credit comes with some of the highest fees and APR, but does not require a security deposit.

Pros

  • Pre-qualify without harming credit score
  • Reports to all three major credit bureaus
  • Low 1% foreign transaction fee

Cons

  • Max $300 credit limit, minus fees
  • High annual fee
  • High regular APR

Indigo® Platinum Mastercard®

 

REGULAR APR

24.90% (Fixed)

ANNUAL FEE

$0-$99

WELCOME BONUS

None

CREDIT SCORE

Fair Credit

Milestone® Gold Mastercard® – Best Credit Cards for Bad Credit 2020

If you have poor credit, you may still qualify for the Milestone® Gold Mastercard®. However, given the high annual fee and low credit limit, it’s not so great of an offer. If you can come up with a security deposit, there are secured cards available with a $0 to $29 annual fee and the same ability to help rebuild credit.

 

Pros

  • No impact on credit while applying for pre-approval
  • Payments reported to all three major credit bureaus
  • 1% foreign transaction fee

Cons

  • $25 account opening fee # $39 overlimit fee
  • Only $300 credit limit
  • Penalty APR of 29.9% may be applied if a late payment is made

Milestone® Gold Mastercard®

 

REGULAR APR

24.90% (Fixed)

ANNUAL FEE

$35-$99

WELCOME BONUS

None

CREDIT SCORE

Bad/Poor

Credit One Bank® Unsecured Visa® for Rebuilding Credit – Best Credit Cards for Bad Credit 2020

This card is a good option only for those who don’t have sufficient funds available to pay a security deposit, or who need a small emergency loan. For rebuilding credit, it’s less costly and easier to get a secured card.

 

Pros

  • No application fees
  • No monthly fees
  • Path to higher credit limit with good payment history
  • Free Experian ScoreX credit score

Cons

  • High 8% cash advance fee for some cardholders
  • $19 annual fee per authorized user
  • Annual fee ranges from $0-$99

Credit One Bank® Unsecured Visa® for Rebuilding Credit

 

REGULAR APR

19.49% to 25.49% Variable

ANNUAL FEE

$0 – $99

WELCOME BONUS

None

CREDIT SCORE

Bad Credit

NASCAR® Credit Card from Credit One Bank® – Best Credit Cards for Bad Credit 2020

If you have poor or limited credit, this is one of the few unsecured cards available to you. The cash back rewards are a plus, but at such a low monthly spend, won’t add up to much. Considering the low credit limit and potentially high annual fee, a secured card with a low annual fee might be a better option.

Pros

  • 1% cash back rewards on eligible purchases
  • Double cash back rewards at NASCAR.com
  • Ability to choose the date when monthly payment will be due

Cons

  • High APR
  • High annual fee for those with poor credit
  • 3% foreign transaction fee (min $1)
  • Very high cash advance fees

NASCAR® Credit Card from Credit One Bank®

 

REGULAR APR

19.49% to 25.49% Variable

ANNUAL FEE

$0 – $99

WELCOME BONUS

None

CREDIT SCORE

Good/Excellent

Capital One® Secured Mastercard® – Best Credit Cards for Bad Credit 2020

With its flexible security deposit requirement and ability to increase credit line beyond the initial deposit, the Capital One® Secured Mastercard® is a rare offering.

 

Pros

  • Qualify with limited or bad credit
  • No foreign transaction fee
  • No annual fee
  • Security deposit of $49, $99, or $200

Cons

  • High APR
  • Not available to borrowers with seriously damaged credit
  • No rewards program

Capital One® Secured Mastercard®

 

REGULAR APR

26.99% (Variable)

ANNUAL FEE

$0

WELCOME BONUS

None

CREDIT SCORE

Limited, Bad

 

Discover it® Secured – Best Credit Cards for Bad Credit 2020

In the secured credit world, the Discover it® Secured card stands above the competition. With an unlimited 1% cash back rate on all purchases, plus a 2% bonus category, no penalty APR and no annual fee, we love this card for those who need to rebuild their credit. The matching cash back reward at the end of your first year is a sweet bonus.

 

Pros

  • No foreign transaction fee
  • No penalty APR
  • Earn unlimited 1% cash back on all purchases
  • Earn double cashback rewards for the first year

Cons

  • $1000 quarterly spending cap on 2% bonus category
  • Relatively low maximum credit line
  • Security deposit doesn’t earn interest

Discover it® Secured

 

REGULAR APR

24.49% Variable

ANNUAL FEE

$0

WELCOME BONUS

Unlimited first year cash back match

CREDIT SCORE

New/Rebuilding Credit

First Access Visa® Credit Card

It’s hard to imagine cramming more fees into a single credit card than we see with the First Access Visa® Credit Card. True, even those with poor credit may qualify. But given the exorbitant fees and sky-high APR, it would make more sense to put that money towards the deposit for a secured card with a low or $0 annual fee.

 

Pros

  • Monthly servicing fee waived for the first year
  • Those with poor credit may qualify
  • Easy online application

Cons

  • Extremely high APR
  • One-time start fee and monthly fee
  • Checking account required

First Access Visa® Credit Card

 

REGULAR APR

See Terms*

ANNUAL FEE

See Terms*

WELCOME BONUS

None

CREDIT SCORE

Fair/Bad Credit

Green Dot Platinum Visa

A pure secured credit card, the Green Dot Platinum Visa is a straightforward way to rebuild your credit. Although it carries a $39 annual fee, the lack of monthly fees makes this card less expensive overall than some other secured cards.

 

Pros

  •  No monthly fees
  •  No credit check or bank account required
  •  Flexible security deposit (min $200)
  •  Reports to all 3 credit bureaus

Cons

  •  3% foreign transaction fee
  •  Has annual fee
  •  No pathway to earn an unsecured card
  •  Fee for in-person payments

Green Dot Platinum Visa

REGULAR APR

19.99% variable APR on purchases

ANNUAL FEE

$39

WELCOME BONUS

None

CREDIT SCORE

Bad/Poor

 

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