Credit scores can feel like a daunting aspect of personal finance, especially if your score is on the lower end. Whether you’re just starting your credit journey or bouncing back from a financial setback, having access to the right credit card can make all the difference in rebuilding your credit score. Forbes Advisor has done the heavy lifting to find the best credit cards for people with bad credit, making the process a little less stressful and a lot more rewarding. Read on to discover our top picks and recommendations.
Best Credit Cards for Low Credit Scores
When your credit score falls into the “bad” range, typically under 580, it can seem like your options are limited. However, there are multiple credit cards designed specifically to help people in this situation rebuild their credit. One of the most popular options is the Discover it® Secured Credit Card. This card requires a security deposit, but it operates just like a regular credit card. It also offers cash back on purchases and even matches all the cash back you’ve earned at the end of your first year.
Another great option for those with low credit scores is the Capital One Platinum Secured Credit Card. This card can be an excellent choice because it allows for a low minimum deposit and provides a credit line equal to your deposit. Additionally, responsible use can lead to an increase in your credit line without needing an additional deposit. This card does not offer rewards, but its primary purpose is to help you build your credit score over time.
For those who prefer a card with no annual fee, the OpenSky® Secured Visa® Credit Card might be the best pick. This card stands out because it doesn’t require a credit check, making it accessible to virtually anyone trying to rebuild their credit. While it also requires a security deposit, it’s a straightforward, no-frills card that reports to all three major credit bureaus, ensuring your positive payment history helps improve your credit score.
Forbes Advisor’s Top Recommendations
According to Forbes Advisor, the Discover it® Secured Credit Card consistently ranks as a top recommendation for individuals with bad credit. Not only does it offer a smooth path to rebuilding credit, but it also provides tangible rewards like cash back on every purchase. The card’s user-friendly features, such as quarterly rotating categories and dollar-for-dollar cash-back match at the end of the first year, make it an attractive option for those looking to turn their credit around while earning some perks along the way.
The Capital One Platinum Secured Credit Card is another highly recommended option, primarily for its flexibility in terms of the required security deposit. With the opportunity to start with a low deposit, users can gradually increase their credit line without needing to deposit more money. Forbes Advisor appreciates this card for its balance between accessibility and functionality, providing a solid foundation for those who need to rebuild their credit responsibly.
Rounding out Forbes Advisor’s top picks is the OpenSky® Secured Visa® Credit Card, notable for its lenient application process. With no credit check required, this card offers a lifeline to individuals who might struggle to get approved for other secured cards. Although it doesn’t come with rewards, its primary strength lies in its simplicity and effectiveness in helping users rebuild their credit. Forbes Advisor values this card for its ease of access and straightforward approach, making it ideal for individuals who need a no-hassle solution to improve their credit standing.
Rebuilding your credit score may seem like an uphill battle, but with the right tools and dedication, it’s entirely achievable. The credit cards recommended by Forbes Advisor are designed to provide a stepping stone towards better credit health. Whether you’re looking for rewards, low deposit requirements, or an easy approval process, there’s a card out there to fit your needs. Start your journey to better credit today with one of these top picks, and remember, responsible use and timely payments are key to improving your credit score over time. Happy rebuilding!