Easy Approval Credit Cards for Poor Credit


The Best Credit Cards For Bad Credit

Best Overall

Petal® 1 "No Annual Fee" Visa® Credit Card

Regular APR

21.49% - 30.99% (Variable)

Why We Picked It

Those whose credit score is less than perfect may be able to build a stronger credit profile by using the Petal 1 Visa Credit Card responsibly. It's one of a tiny batch of credit cards aimed at those without great credit that don't require an upfront security deposit.

Pros & Cons

  • No security deposit required
  • No annual fee
  • Limited rewards program
  • Rewards only available at select merchants
  • No balance transfer option available

Card Details

  • $0 Annual Fee
  • Variable APRs range from 21.49% – 30.99%
  • $300 – $5,000 credit limits
  • Earn a credit limit increase in as little as 6 months. Terms and conditions apply.
  • No credit score? No problem. If eligible, we'll create your Cash Score instead.
  • 2% – 10% cash back at select merchants
  • See if you're pre-approved within minutes without impacting your credit score.
  • No annual or foreign transaction fees.
  • Build credit alongside hundreds of thousands of Petal card members.
  • Petal's mobile app makes it easy to manage your money, track your spending, and automate payments.
  • Petal reports to all 3 major credit bureaus
  • No deposits required
  • Card issued by WebBank, Member FDIC

Best for No Credit Check

OpenSky® Secured Visa® Credit Card

No Rewards

The OpenSky® Secured Visa® Credit Card does not offer rewards on purchases.

Regular APR

18.14% (variable)

Credit Score

No credit check

Why We Picked It

OpenSky offers a solid path to rebuilding credit, with no credit check or bank account required. However, you'll have to come up with a minimum of $200 for the security deposit.

Pros & Cons

  • No credit check
  • Relatively low APR for a "bad credit" card
  • No bank account required
  • 3% foreign transaction fee
  • Has annual fee

Card Details

  • No credit check to apply and find out instantly if you are approved.
  • OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years
  • Get considered for a credit line increase after 6 months, with no additional deposit required
  • You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months
  • Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card
  • Nearly half of OpenSky cardholders who make on-time payments improve their FICO score 30+ points in the first 3 months
  • Your refundable* deposit, as low as $200, becomes your OpenSky Visa credit limit
  • Easy application, apply in less than 5 minutes right from your mobile device
  • Offer flexible payment due dates which allow you to choose any available due date that fits your payment schedule
  • * View the cardholder agreement

Best for First-Year Bonus

Discover it® Secured Credit Card

Up to 2% Reward Rate

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earnRead More

Welcome Bonus

Cashback Match™

Regular APR

24.49% Variable APR

Credit Score

New/Rebuilding Credit

Why We Picked It

In the secured credit world, the Discover it® Secured Credit Card stands above the competition. With an unlimited 1% cash back rate on all purchases, plus 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, 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 & Cons

  • No annual fee
  • Cash back rewards earning is uncommon for a secured card
  • Free FICO score access each month
  • Cashback Match doubles cash back rewards earning at the end of the first year
  • Rewards are capped
  • Secured cards don't provide many of the perks unsecured cards do
  • Secured cards require refundable deposits

Card Details

  • No credit score required to apply.
  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • Establish your credit line by providing a refundable security deposit of at least $200. That means a $200 deposit for a $200 credit line. Or a $500 deposit for a $500 credit line. Bank information must be provided when submitting your deposit, and the security deposit equals your credit limit.
  • Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • NEW! Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • Click "Apply Now" to see terms and conditions.

Best for Newcomers to the U.S.

Tomo Credit Card *

Regular APR

No interest charges

Credit Score

No credit check or credit history required

Pros & Cons

  • No credit check required
  • No annual fee
  • No APR charges
  • Not all financial institutions can easily be linked to your account for approval
  • Other alternative credit cards may offer better rewards and other benefits
  • Have to be preapproved before getting an actual card application

Card Details

  • Up to $10,000 credit limit
  • No interest charges
  • No annual fee
  • Earn unlimited 1% cash back on all eligible purchases
  • Expedited autopay including weekly, bi-weekly, and monthly payments
  • Non-U.S. citizens are eligible to apply
  • No security deposit
  • No credit check or credit history required
  • Reports to all 3 major credit bureaus

Best for Everyday Rewards

Bank of America® Customized Cash Rewards Secured Credit Card *

Bank of America® Customized Cash Rewards Secured Credit Card

Up to 3X Reward Rate

Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvementRead More

Regular APR

25.49% variable

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

A secured card with no annual fee and the ability to earn rewards, this Bank of America card can provide a way forward for those needing to build their credit profile.

Pros & Cons

  • No annual fee
  • Earns cash-back rewards on eligible purchases
  • Potential for an upgrade to an unsecured card
  • The rewards system can be complicated to track
  • An opening deposit of $200 is required
  • There's a foreign transaction fee

Card Details

  • Add your Bank of America® credit card to your mobile device then shop in-store or in-app using Apple Pay®, Google Pay™ or Samsung Pay
  • 25.49% variable for APR on purchases and balance transfers
  • No annual fee
  • Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement & furnishings
  • Earn 2% cash back at grocery stores and wholesale clubs
  • Earn unlimited 1% cash back on all other purchases
  • You'll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
  • A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
  • Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking

Methodology

Forbes Advisor analyzed dozens of credit cards marketed toward subprime borrowers. Factors taken into consideration for each category included the annual fee, any monthly fees, security deposit requirements, annual percentage rate (APR) and other benefits that come with card ownership like rewards and other extras.


Best Credit Cards For Bad Credit


What Is a Bad Credit Score?

There are many different credit scoring models and each lender may have a particular version they use which means that the definition of a bad credit score may vary somewhat between lenders. While there's no exact number that counts as the threshold between "bad" and "good" credit, generally a FICO score below 580 is considered very poor and between 580 and 669 is generally considered fair.

Credit Cards and Credit Scores

The lower your credit score, the more limited your options when it comes to credit cards. Someone with bad credit will typically only be able to get approved for a secured card or a card with higher-than-average interest rates and other additional fees.

What causes bad credit?

Bad credit doesn't happen overnight. Typically someone ends up with a damaged credit score because they repeatedly miss payments or default completely on what they owe. Filing for bankruptcy will also have a negative impact on your credit score. Other actions that can lower your score include maxing out your cards, repeatedly making just the minimum payments or paying late multiple times.


How to Tell if You Need a Credit Card for Bad Credit

If you aren't quite sure whether or not a credit card for bad credit is the most suitable for your circumstances, here are a few things to consider.

Determine Your Credit Score

If you're looking to apply for a credit card and aren't quite sure what you might qualify for, you should check your credit score first to get an idea of where you stand. Depending on your results, it may be best to get a card with more lenient underwriting circumstances and work on improving your credit so you can apply for a better card down the line.

Consider Your Credit History

If you already know you've had some major financial missteps like a bankruptcy or loan default, it's likely that a credit card for bad credit will be a more realistic option than applying for a card designed for those with good or better credit. If you aren't clear on what your credit profile might look like, you can get a free credit report once a year from each of the three major credit reporting agencies at annualcreditreport.com.


How to Choose Credit Cards for Bad Credit

If you have bad credit, getting a credit card can be an opportunity to improve your credit profile. Here's what to look for in a card for bad credit:

  • Reporting on-time payment behavior. You should choose a card that reports to at least one of the three major credit bureaus: Equifax, Experian and TransUnion. Over time, consistent payments will show up on your credit report and can help improve your credit standing. It's even better if you choose a card that reports to all three credit bureaus.
  • Light on fees. Most cards for bad credit come with punishing fees like sky-high annual fees that can eat away at your credit limit, account opening fees or even fees for requesting a higher credit limit. Aim for a card that seeks to minimize your out-of-pocket costs just owning it.
  • Ability to upgrade. Some secured cards will allow you to "graduate" to an unsecured card after several months of good payment behavior. This can be beneficial since you won't have to open another account once your credit has improved. Opening and closing new credit lines can have a negative effect on your score and undo some of your hard work.

How to Apply for Credit Cards With Bad Credit

If you know you have bad credit and are looking to apply for a credit card, you should still know where you stand in the spectrum of bad credit and have an idea of what your goals are in acquiring a credit card and what's realistically attainable.

Secured Credit Cards for Bad Credit

When you're brand new to credit or you've had some big credit missteps in your past, a secured credit card might be your best bet. Lenders who may be hesitant to issue credit to borrowers who have struggled financially may be more likely to approve applicants for a secured credit card, as it requires a deposit that can be seized if the debt is unpaid. That makes the borrower less of a risk to the lender.

Each secured card is different and comes with its own minimum and maximum credit limits, typically starting at a minimum required opening deposit of a few hundred dollars up to several thousand dollars, depending on the card maximum limit and how big of a deposit you're willing and able to part with.

Unsecured Credit Cards for Bad Credit

If you're simply lacking credit history or you haven't been building credit long enough to earn a good or better credit score, an unsecured card may be attainable. There are several unsecured cards on the market aimed at those without great credit. Just be aware that not all unsecured cards for better credit are created equal. Many of these cards come with annual fees and/or other fees like account opening fees that can eat away at your available credit. Unsecured cards for bad credit typically will also come with sky-high APRs which can make it expensive to carry a balance.

Credit Cards After Bankruptcy

Starting over financially after bankruptcy can be tricky. You can't apply for a card until your bankruptcy is discharged. But once it is, your best bet is to apply for a card as soon as the bankruptcy process is completed, so you can start rebuilding your credit right away.

There are steps you can take to rebuild your credit after a bankruptcy but depending on what type of bankruptcy you filed for, it will show up on your credit report for seven to ten years. However, that doesn't completely eliminate all credit card prospects.

There are a small handful of credit cards you can get even with a bankruptcy on your credit report, including ones that don't require a credit check. Make sure to read the terms and conditions of any card you're interested in to see if your financial circumstances match with the card's requirements and restrictions.


How to Get Approved for Credit Cards With Bad Credit

There's no guaranteed method of getting approved for a credit card. But you can improve your odds of success by knowing where you stand and only applying for a card that's designed for someone with your specific financial circumstances.

How to Prequalify for Credit Cards With Bad Credit

If an issuer offers prequalification for one or more of their credit cards, they'll typically show it on their website. To see if you prequalify, you'll be asked to enter a few details about yourself like your name, address and the last four digits of your Social Security number. This is so the issuer can run what's known as a soft check of your credit. This type of credit check, unlike a "hard" pull of your credit, won't have any impact on your score. Running a soft check doesn't mean you're starting the application process either, but it does allow an issuer to get an idea of what you may or may not qualify for when it comes to the cards they offer.


How to Improve Your Credit Score

Improving your credit score is synonymous with building better credit. There's no quick fix but there are moves you can make to get on the right track. For starters, always pay your bills on time. Your payment history makes up 35% of your credit score. If you're finding it a challenge to remember the due dates you can use autopay to keep you on track.

You should also do your best to keep your credit utilization ratio below 30%. This is measured by comparing your credit card balances to your overall credit card limit. Lenders use this ratio to evaluate how well you manage your finances. A ratio of less than 30% and greater than 0% is generally considered good.

Applying for too many new lines of credit can also hurt your credit score. Each time you apply for credit, the lender will run a hard credit check. This can drop your score by one to five points and if approved, lower your average account age which also can drop your credit score.if possible try to avoid applying for too many lines of credit when working on improving your score.

Bottom Line

Getting a credit card when you have bad credit is possible and can be a good stepping stone towards building better credit habits. However, not all credit cards targeting those without great credit are created equally. Choosing the right card for you will depend on a combination of your personal financial history and your financial goals.


Frequently Asked Questions

Can I get a credit card with bad credit?

You can get a credit card with bad credit but your choices will be limited to either a secured credit card or one of a small handful of unsecured credit cards available to those with bad credit.

If you do choose one of these options, a worthy goal is to use the card to help build your credit so you can eventually qualify for a card with better rewards and perks.

What should I look for in a credit card for bad credit?

If you have bad credit, getting a credit card can be an opportunity to improve your credit profile. The main things you want in a credit card designed for those without great credit is that the card reports on-time payment behavior to the major credit bureaus (Equifax, Experian and TransUnion) and ideally all three of them.

You also want to try and avoid cards that come with high annual fees and other charges like account opening fees. Finally, it can be a benefit to choose a card that will allow you to "graduate" to an unsecured card after several months of good payment behavior so you won't have to open another account once your credit has improved.

Can you do a balance transfer with bad credit?

If you're applying for a card with a 0% APR balance transfer offer or a lower interest rate than your current card has, it will be challenging to qualify with bad credit. Typically, these types of cards are available to those with the best credit.

When an issuer allows a cardholder to transfer a balance from another bank, it's a way for them to take on new customers. But an issuer takes a risk on anyone they extend a line of credit to. If your credit score deems you too risky to an issuer, you aren't likely to be approved for a balance transfer.

If you're looking for help taming a high-interest credit card balance and your credit doesn't qualify you to transfer your balance to another card, consider a personal loan, which may have more favorable rates. Or, speak to a credit counselor who might be able help you work through options to help improve your credit and pay down your debt.

What is a good APR for a credit card?

A good APR is generally one that is at or below the current average credit card interest rate. As of August 2021, the average credit card interest rate was 17.13%, according to data from the Federal Reserve. Someone with excellent credit can likely expect to qualify for a rate at or below the average. Someone with bad credit will likely have an APR higher than the average.


Other Credit Cards To Be Considered

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author's alone and have not been provided, approved, or otherwise endorsed by our partners.

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Source: https://www.forbes.com/advisor/credit-cards/best/bad-credit/

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