If your credit score isn’t quite where you want it to be, you’re not alone. Millions of people are working to rebuild their credit—and the good news is, the right credit card can help. In this guide, we’ll break down the best credit cards for bad credit in 2025, explain how they work, and show you how to use them responsibly to boost your credit score over time.
Why Your Credit Score Matters
Before diving into card options, let’s quickly talk about why credit matters. Your credit score influences everything from getting approved for a loan to the interest rate you’ll pay. A low score can cost you thousands of rupees (or dollars) over time.
Factors that affect your credit score:
| Factor | Weight (%) |
|---|---|
| Payment History | 35% |
| Credit Utilization | 30% |
| Length of Credit History | 15% |
| Credit Mix | 10% |
| New Credit Inquiries | 10% |
If you have bad credit (below 580), don’t worry—you can still qualify for credit cards designed to help you rebuild.
Types of Credit Cards for Bad Credit
There are two main categories:
- Secured Credit Cards
- Requires a refundable deposit.
- Ideal for people with no credit or damaged credit.
- Unsecured Credit Cards
- No deposit required.
- May have higher fees and interest rates.
Each type has its pros and cons, so choosing the right one depends on your financial goals and discipline.
Top 7 Best Credit Cards for Bad Credit in 2025
Let’s look at the best options, including a comparison of features, fees, and credit reporting.
1. Discover it® Secured Credit Card
Best for: Earning rewards while rebuilding credit
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Security Deposit | $200 minimum |
| Rewards | 2% cash back at gas stations & restaurants |
| Credit Reporting | Reports to all 3 bureaus |
✅ Why we like it: Unlike many secured cards, this one offers cash-back rewards and no annual fee.
2. Capital One Platinum Secured Credit Card
Best for: Low deposit requirements
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Deposit | As low as $49 for a $200 limit (based on creditworthiness) |
| Credit Reporting | Yes |
| Upgrade Option | Eligible for an upgrade with responsible use |
✅ Why we like it: Flexible deposit and a clear path to an unsecured card.
3. OpenSky® Secured Visa® Credit Card
Best for: No credit check required
| Feature | Details |
|---|---|
| Annual Fee | $35 |
| Credit Check | None |
| Security Deposit | $200–$3,000 |
| Credit Reporting | Yes, to all major bureaus |
✅ Why we like it: Ideal for those with very poor credit or no credit history at all.
4. Credit One Bank® Platinum Visa® for Rebuilding Credit
Best for: Unsecured access with rewards
| Feature | Details |
|---|---|
| Annual Fee | $75–$99 |
| Credit Limit | Starts at $300 |
| Rewards | 1% cash back on eligible purchases |
| Prequalification | Yes |
✅ Why we like it: No deposit needed and it comes with cashback, though fees are high.
5. Self Credit Builder Account + Secured Visa® Credit Card
Best for: Credit building with savings
| Feature | Details |
|---|---|
| Annual Fee | $25 |
| Security Deposit | Linked to your Self account |
| Additional Perk | Builds savings and credit at once |
| Reports to Bureaus | Yes |
✅ Why we like it: Innovative model that helps you save money while building credit.
6. Chime Credit Builder Visa® Credit Card
Best for: Fee-free secured option
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Credit Check | None |
| Security Deposit | Flexible through Chime account |
| Late Fees | $0 |
✅ Why we like it: No fees, no interest, and no credit check—great for young or new credit users.
7. Petal® 1 “No Annual Fee” Visa® Credit Card
Best for: Alternative credit evaluation
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Credit Check | Cash-flow based |
| Credit Limit | $300–$5,000 |
| Rewards | Up to 10% cash back at select merchants |
✅ Why we like it: Doesn’t rely only on your credit score; uses bank data to evaluate eligibility.
Comparison Table: Top Credit Cards for Bad Credit (2025)
| Card Name | Type | Annual Fee | Rewards | Credit Check | Deposit Required |
|---|---|---|---|---|---|
| Discover it® Secured | Secured | $0 | Yes | Yes | Yes |
| Capital One Platinum Secured | Secured | $0 | No | Yes | Yes |
| OpenSky® Secured Visa® | Secured | $35 | No | No | Yes |
| Credit One Bank® Visa | Unsecured | $75–$99 | Yes | Yes | No |
| Self + Visa® | Secured | $25 | No | Yes | Yes |
| Chime Builder Visa® | Secured | $0 | No | No | Yes |
| Petal® 1 Visa® | Unsecured | $0 | Yes | Bank Data | No |
What to Look for in a Credit Card for Bad Credit
Not all cards are created equal. Here’s what you should prioritize:
✅ Reports to All Three Bureaus
Ensure the card reports to Equifax, Experian, and TransUnion. This is essential for building or repairing credit.
✅ Low or No Annual Fee
You’re trying to build credit—not spend a fortune in fees.
✅ Reasonable Interest Rates
Interest rates tend to be high for bad-credit cards, but some are worse than others. Pay attention to the APR.
✅ Upgrade Path
Some secured cards offer a path to upgrade to an unsecured card after consistent payments.
How to Use a Credit Card to Rebuild Credit
Getting a card is just the beginning. Here’s how to use it wisely:
- Pay on time – Even one missed payment can hurt your score.
- Keep utilization low – Use less than 30% of your available limit.
- Don’t close old accounts – Length of credit history matters.
- Check your reports – Monitor for errors or fraudulent activity.
FAQs: Credit Cards for Bad Credit
Q: How long does it take to improve credit with a secured card?
A: You can start seeing improvements in as little as 3–6 months with consistent on-time payments.
Q: Can I get an unsecured card with bad credit?
A: Yes, but they often come with higher fees and lower limits.
Q: Will applying hurt my credit score?
A: Yes, a small drop from a hard inquiry is normal, but it’s usually temporary.
Q: Should I get more than one card?
A: Not at first. Focus on using one responsibly before applying for more.
Final Thoughts: The Smart Way to Build Credit
Rebuilding credit takes time, patience, and the right tools. With any of the best credit cards for bad credit listed above, you’re not just spending—you’re investing in your financial future.
Start with a card that fits your budget and credit profile. Make payments on time, keep balances low, and track your progress. Within a year, you’ll likely see your score rise, opening the door to better credit offers and financial freedom.