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Credit Cards for Bad Credit
Finding a credit card for bad credit can be difficult. Bad credit cards often come with high fees and interest rates which can cost you hundreds of thousands of dollars over the life of the card. At Credit Karma, we review all of the credit cards for bad credit and make recommendations based on the fees, customer service, and user feedback. From guaranteed approval to secured cards, we have reviews and recommendations for each credit card type for bad credit.
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Featured Cards by Credit Score:
Updated: 2/1/2012
Poor Credit Score (549 or Lower)
With poor credit, your options for credit cards are somewhat limited. Most companies won't provide a credit line without a deposit and virtually all credit cards are going to charge monthly fees. However some of these cards will offer guaranteed approval and are the best ways to start rebuilding your credit. You may build, rebuild, or reestablish your credit history by making on time monthly minimum payments to all of your creditors and maintaining your balances below credit limits. Of these pre-paid and secured cards, these are the 2 best options for bad credit:
Orchard Bank Classic MasterCards
Best Credit Card for Building Credit
- An excellent credit card for help rebuilding credit scores; reports to 3 major credit bureaus monthly!
- Acceptance at millions of locations worldwide, including website purchases and reservations
- Your account information is updated and at your fingertips 24/7 so you can manage it your way
- Email and text messages are available to remind you of your upcoming payment due date
- On-call customer service representatives to assist you with questions or concerns
Why we recommend it...
The Orchard Bank Secured MasterCard is consistently the highest rated secured credit card by Credit Karma users. The annual fee is waived the first year. It has been reported that Orchard Bank has good customer service. Members have also reported healthy credit limit increases and upgrades to unsecured cards with responsible payment history.
It is important to note that Orchard Bank does have a unique application process. When you apply, Orchard Bank will perform a soft credit inquiry (does not lower credit score) to determine the best product for you. If you have strong credit, they will provide an unsecured card. The secured MasterCard has an APR of 7.90%-19.90%, an annual fee of $0 - $60 for the first year and $35 - $79 per year thereafter, and no processing fee for people with poor or no credit. The minimum security deposit is $200
Pros:
- No Processing Fee. Annual Fee Waive Year One
- Builds Credit History
- Upgrades to Unsecured Credit Card
Cons:
- Requires a $200 Deposit
Credit Score Approval Data †
599
Average Credit Score Approved for this Card
494
Lowest Credit Score Approved for this Card
Capital One® Secured Mastercard®
Best Secured Credit Card
- Get the credit you need with no processing fees or application fees
- Automatic reporting to the 3 major credit bureaus
- Track credit with access to your credit score and other tools
- Your refundable security deposit can get you a line up to $3000
- You may qualify for credit line increases with no further security deposit required
- Use it like any MasterCard credit card, accepted at millions of locations worldwide
Why we recommend it...
Capital One’s Secured MasterCard helps you build credit without breaking the bank. With no set up or processing fees and a hard-to-beat annual fee of $29, Capital One Secured MasterCard reports to all 3 major credit bureaus so you can take steps to build your credit history.
Additionally, Capital One provides credit resources, like access to your credit score, to help you monitor and better your overall credit health. After continued smart and responsible credit use, Capital One rewards eligible cardholders with a credit line increase without additional security deposits. Initial security deposit requirements start at $200, and can secure you a credit line up to $3,000.
A secured card is one of the best ways to turn around poor credit or establish good credit history, and Capital One’s Secured MasterCard is the right tool to help you do it an easily and affordably.
Pros:
- Low annual fee
- No processing or application fees
Cons:
- High interest rate
Credit Score Approval Data †
552
Average Credit Score Approved for this Card
488
Lowest Credit Score Approved for this Card
* See the online Provider's credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Now" button, you can review the credit card terms and conditions on the provider's website.
† Credit Karma members have received approvals with these Credit Karma credit scores. These approval metrics are only guidelines and approval is not guaranteed. You can learn more about credit card approval through our in-depth article.
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