Best 2023 Credit Cards For People With Bad Credit
In today’s world, owning and using a credit card has become almost essential. This is particularly true because a significant portion of the economy operates online. Whether you’re purchasing goods, paying bills, or booking travel arrangements, a credit card is often required for online transactions.
For individuals with bad credit scores and a problematic credit history, obtaining a credit card can be a challenge. Most credit card issuers require applicants to have a credit score of 580 or above, making it difficult for those with bad credit to qualify. However, there are credit cards available that accept individuals with bad credit.
The majority of these cards are secured cards, which require a security deposit to obtain. Although some may find this unacceptable, responsible use of these secured cards can help rebuild credit and increase credit scores. Additionally, some secured cards offer cashback rewards. Some credit cards for poor credit are unsecured, meaning they do not require a security deposit, but often come with a low credit line and high interest rates.
Below is a list of the best credit cards for people with poor credit in 2023, including both secured and unsecured options.
Credit One Bank Platinum Visa
Receiving rewards on your regular expenses with an unsecured card is an uncommon benefit for a card designed for individuals with poor credit. Credit One offers this feature, along with the promise to frequently evaluate your account to determine if you’re eligible for a credit line increase. Furthermore, this unsecured card doesn’t demand any deposit and can assist you in enhancing your credit score. Additionally, you can apply for pre-qualification using a soft credit check, which will not have any impact on your credit score.
– Fee: $8.25 per month
– Interest: 24% per year variable
– Earn 1% cash back rewards on eligible gas, grocery purchases and others
– Automatic reviews for credit line increase opportunities
– With $0 Fraud Liability, you won’t be responsible for unauthorized charges
Petal 1 “No Annual Fee” Visa Credit Card
This credit card is particularly unique as it is unsecured, meaning you don’t have to make a security deposit, and there are no monthly or annual fees. Additionally, it’s designed to accept applicants who have little to no credit history. Another great feature is that they offer a soft credit check to see if you pre-qualify.
– Fee: None
– Interest: 22.99% – 32.49% (Variable) per year
– Initial Credit Limit: $300 – $5,000
– Earn a credit limit increase in as little as 6 months
– Petal reports to all 3 major credit bureaus, allowing you to improve your credit score
OpenSky Secured Visa Credit Card
The unique feature of the OpenSky Secured Visa Credit Card is that it doesn’t require a credit check or bank account to be approved, making it an ideal option for those with bankruptcies, back taxes, or no credit score. Unlike other secured credit cards, it can accept you regardless of these issues. However, you will need to make a minimum security deposit of $200 to get this card.
– Annual Fee: $35
– Interest: 20.39% variable annual
– Up to $200 unsecured credit line added in your first year
– No credit check to apply and find out instantly if you are approved.
– Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card
Discover it Secured Credit Card
While it may not belong to the Visa or MasterCard network, the Discover card is still an excellent option for individuals with bad credit. Not only does it have no annual fee or penalty APR, but it also offers a generous unlimited 1% cash back rewards rate on all purchases. In addition, you can earn 2% cash back at gas stations and restaurants, up to $1,000 in combined purchases per quarter. The Cashback Match feature doubles your cash back rewards earnings at the end of the first year.
– Interest: 25.99% Variable per year
– Your credit line equals your refundable security deposit of at least $200
– Ability to transition to an unsecured line of credit and return your deposit
– No minimum credit score required to apply
Bank of America Customized Cash Rewards Secured Visa Card
Not only is this card accessible to individuals with poor credit, but it also comes with an excellent cash back rewards program. You can select one of six spending categories as your enhanced cash-back earning category every calendar month. You can earn up to 3% cash back in the category of your choice, which includes gas, online shopping, dining, travel, drug stores, or home improvement and furnishings. Furthermore, they do not charge an annual fee.
– Fee: None
– Interest: 26.99% variable per year
– A minimum refundable security deposit of $300 (maximum of $4,900) is required
– Potential for an upgrade to an unsecured card and refund of your security deposit
– Can link with using Apple Pay or Google Pay