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    Best Credit Cards for Bad Credit in 2025

    If your credit score has taken a hit, a secured or credit-building credit card can help you get back on track. These cards report to all three credit bureaus, helping you rebuild your score with responsible use. While some require a security deposit, others use alternative data for approval. We've found the best options for every credit situation.

    Quick Comparison

    CardAnnual FeeRating
    Discover it® Secured Credit Card

    Best Overall for Bad Credit

    		$04.6/5
    Capital One Platinum Secured Credit Card

    Best for Low Deposits

    		$04.3/5
    Petal® 2 "Cash Back, No Fees" Visa® Credit Card

    Best Unsecured for Limited Credit

    		$04.2/5
    OpenSky® Secured Visa® Credit Card

    Best for No Credit Check

    		$353.8/5

    Detailed Card Reviews

    1

    Discover it® Secured Credit Card

    Discover

    Best Overall for Bad Credit

    Annual Fee

    $0

    Sign-Up Bonus

    Cashback Match: all cash back earned in the first year is matched

    Regular APR

    28.24% Variable

    Credit Score

    Bad to Fair (no minimum)

    Rewards Rate

    2% at gas stations and restaurants (up to $1,000/quarter), 1% on everything else

    4.6

    Why We Like It

    The Discover it Secured is the best secured card available because it actually earns meaningful rewards — 2% at gas stations and restaurants, plus 1% on everything else with Cashback Match doubling your earnings in Year 1. Most secured cards offer zero rewards, making this a standout.

    Pros

    • Earns cash back rewards (rare for secured cards)
    • Cashback Match doubles rewards in Year 1
    • $0 annual fee
    • Automatic review for upgrade to unsecured card after 8 months

    Cons

    • Requires security deposit ($200 minimum)
    • Higher APR than average (28.24%)
    • Discover not accepted everywhere

    Who Should Apply

    Anyone with bad credit who wants to rebuild while earning rewards. The automatic upgrade path means you can graduate to an unsecured card without applying for a new one.

    Apply Now
    2

    Capital One Platinum Secured Credit Card

    Capital One

    Best for Low Deposits

    Annual Fee

    $0

    Sign-Up Bonus

    None

    Regular APR

    30.49% Variable

    Credit Score

    Bad to Fair (no minimum)

    Rewards Rate

    No rewards

    4.3

    Why We Like It

    Capital One's secured card stands out for its flexible deposit structure. Depending on your creditworthiness, you may qualify for a credit line higher than your deposit — a rare feature among secured cards. Automatic credit line reviews and no annual fee make it a solid rebuilding tool.

    Pros

    • Potential for credit line higher than deposit
    • $0 annual fee
    • Automatic credit line increase reviews
    • Reports to all three credit bureaus

    Cons

    • No rewards program
    • High APR (30.49%)
    • No sign-up bonus

    Who Should Apply

    People with bad credit who want the lowest possible barrier to entry. If you can't afford a large security deposit, Capital One may give you more credit than you put down.

    Apply Now
    3

    Petal® 2 "Cash Back, No Fees" Visa® Credit Card

    Petal

    Best Unsecured for Limited Credit

    Annual Fee

    $0

    Sign-Up Bonus

    None

    Regular APR

    18.24% – 32.24% Variable

    Credit Score

    Fair (uses alternative data — no credit history OK)

    Rewards Rate

    1% cash back, increasing to 1.5% after 12 on-time payments

    4.2

    Why We Like It

    The Petal 2 is one of the few unsecured cards available to people with limited or no credit history. It uses alternative data (like banking history) for approval, so you don't need a traditional credit score. The rewards rate increases as you demonstrate responsible use.

    Pros

    • No security deposit required (unsecured)
    • Uses alternative data for approval (banking history)
    • Rewards increase to 1.5% after 12 on-time payments
    • $0 annual fee and no foreign transaction fees

    Cons

    • Starting rewards rate is low (1%)
    • No sign-up bonus
    • APR range is wide (up to 32.24%)

    Who Should Apply

    People with limited credit history who want an unsecured card without putting down a deposit. If you have a steady banking history, Petal's alternative underwriting may approve you when traditional issuers won't.

    Apply Now
    4

    OpenSky® Secured Visa® Credit Card

    OpenSky

    Best for No Credit Check

    Annual Fee

    $35

    Sign-Up Bonus

    None

    Regular APR

    22.64% Variable

    Credit Score

    Bad (no credit check required)

    Rewards Rate

    No rewards

    3.8

    Why We Like It

    The OpenSky Secured Visa is the go-to card for people who can't pass any credit check. There's no credit inquiry at all — approval is based solely on your ability to make the security deposit. It reports to all three bureaus, making it an effective credit-building tool.

    Pros

    • No credit check required
    • Reports to all three credit bureaus
    • Choose your deposit ($200–$3,000)
    • Visa network (accepted almost everywhere)

    Cons

    • $35 annual fee
    • No rewards program
    • No upgrade path to unsecured card
    • No banking relationship benefits

    Who Should Apply

    Anyone who has been denied by other secured cards due to credit history. If you need a guaranteed-approval card that reports to credit bureaus, the OpenSky is a reliable option despite the $35 annual fee.

    Apply Now

    Frequently Asked Questions

    A secured credit card requires a cash security deposit (typically $200–$500) that serves as collateral and usually equals your credit limit. This reduces risk for the issuer, making approval easier for people with bad or no credit. Your deposit is refundable when you close the account or upgrade to an unsecured card.

    With consistent on-time payments and low utilization, most people see meaningful credit score improvement within 6-12 months. Some issuers (like Discover) review your account for an unsecured upgrade after just 8 months of responsible use.

    If your credit score is below 580, a secured card is likely your best option. If you have limited history but a score above 580, an unsecured card like the Petal 2 may be available. Secured cards offer more guaranteed approval but require a deposit.

    Most credit card applications result in a hard inquiry, which can temporarily lower your score by 5-10 points. However, the OpenSky Secured Visa performs no credit check at all. Once approved, responsible use will help your score more than the inquiry hurts it.