7 Best Credit Cards for Bad Credit 2023

Without good credit (whether that’s personal credit or business credit), you may have a hard time getting a credit card. No matter if your low credit score is due to a lack of credit history or a problematic credit report, many card issuers won’t offer you a credit card―much less a good one.

But bad credit doesn’t have to mean you go credit card-less. It just means you need to find the right credit card company.

That’s why we’ve rounded up the best business and personal credit cards for bad credit. We found that there are a lot of great bad-credit cards for business owners, but we’ll show you all the best cards that offer good rewards and low fees―all while building credit.

Like any credit card, a credit card designed for poor credit gives you a credit limit that you can spend up to (and then repay). And as you use your card, your credit card company should report your usage to the major credit bureaus―Equifax, Experian, and Transunion―which allows you to build credit over time. (That’s why you want to use a credit card instead of a debit card or prepaid card.)

But unlike a credit card for good credit, a credit card for bad credit will probably come with a higher APR (annual percentage rate), a lower credit limit, and a less impressive rewards program. And many credit cards for poor credit are secured cards, which means you have to offer a security deposit as collateral.

As you can see, credit cards for bad credit have some downsides. They’re best used as a stepping stone toward better credit (and a better credit card). So make sure you use your credit line responsibly and repay your card balance each month. That way, you can improve your credit score and qualify for a better credit card.

One more thing to note: It’s harder to find a business credit card for bad credit than a personal credit card for bad credit. In fact, some of the business cards below (like the Spark Classic) are designed for a fair credit score, rather than a poor credit score. 

If you can’t qualify for a business credit card, you can use a personal credit card for your business. Just know that a personal credit card can make your business finances more complicated, will probably come with a lower credit limit, and won’t build business credit like a business credit card will.

The Spark 1% Classic from Capital One stands out from all the other cards on this list for one simple reason: it’s an unsecured credit card.

That means you don’t need to offer a security deposit to get the Spark 1% Classic. Instead, you can apply and get approved like any other unsecured card out there. But unlike most unsecured card options, Capital One designed the Spark 1% Classic for businesses with just fair credit. So it’s easier to get approved for than most unsecured cards, but it doesn’t require collateral like a secured card would.

Of course, that means that Spark 1% Classic does require some compromise on your part. It has just about the highest APR of any card on this list, and it earns a relatively low cash back rate of just 1% per $1 spent. In other words, it doesn’t have all the perks you’d find on the best business credit cards.

Still, the Spark 1% Classic offers a nice compromise for businesses that don’t want to offer collateral to get a credit card but can’t yet qualify for better unsecured cards.

If you’re looking for the highest credit limit you can get with bad credit, you’re looking for the Business Edition® Secured® Visa Card.

Like other secured credit cards, you’ll have to make a security deposit that determines your credit limit. But the Business Edition® Secured® Visa Card lets you give yourself a way higher credit limit than other secured cards on this list―up to $100,000. Plus, the Business Edition® Secured® Visa Card lets your security deposit do more for you by earning interest on your cash deposit amount. Neat, right?

Unfortunately, the Business Edition® Secured® Visa Card is another geographically limited credit card. You need to be in one of the seven states (Colorado, Illinois, Iowa, Kansas, Nebraska, South Dakota, and Texas) First National Bank of Omaha operates in. And while you’ll get a (potentially) high credit limit, this card also comes with an unwaivable annual fee and no rewards at all.

But if those issues don’t bother you, the Business Edition® Secured® Visa Card gives you the chance at a way higher credit line than you can get from other credit cards for bad credit.

As we said earlier, you can also use personal credit cards for your business or yourself. 

As you’ll see, these cards tend to have lower credit limits than the business cards above. And remember, these cards can help your personal credit score, but they won’t help your business credit score at all.

The Bank of America® Customized Cash Rewards Secured Credit Card is our favorite personal credit card for people with bad credit.

There are a couple reasons for that. First, the rewards program. The Bank of America® Customized Cash Rewards Secured Credit Card earns at least 1% cash back on all your purchases, with a 2% rate on eligible grocery store and wholesale club purchases and an even better 3% rate on one single category that you get to choose (like gas or dining). Put simply, that makes Bank of America’s rewards program better than any of the cards below.

And while the Bank of America® Customized Cash Rewards Secured Credit Card doesn’t have the highest credit limit, it does give you a higher credit limit than most personal secured cards (depending on your security deposit, of course). Plus, if you develop a good credit history, you may qualify to get your cash deposit refunded. Throw in the lack of an annual fee and competitive (if not stellar) APR, and you’ve got a card that checks a lot of boxes.

Of course, the Bank of America® Customized Cash Rewards Secured Credit Card has all the downsides you’d expect from a credit card for bad credit. The APR is higher than you’d get from most unsecured credit cards, for example, and the maximum credit limit is pretty low.

But for a secured card for bad credit, the Bank of America® Customized Cash Rewards Secured Credit Card does a lot right―making it our favorite personal credit card for bad credit.

The Discover it® Secured Credit Card doesn’t offer the highest cash back rate we’ve seen, but it does have a nice perk: cash back matching.

All your Discover it® Secured Credit Card purchases will earn between 1% and 2% cash back (with the higher rate applying to your first $1,000 in eligible gas and restaurant purchases every quarter). While those rates don’t blow us away, your cash back rewards will go a lot further thanks to Discover’s matching program. Discover will match all the cash back you earn during your first year, essentially doubling your rewards.

Rewards aside, the Discover it® Secured Credit Card has no annual fee (nice) but a maximum credit limit of just $2,500 (less nice). It’s definitely not a card you’ll want to use long-term. Fortunately, Discover will also automatically review your account after eight months to see if you can qualify for a better, unsecured card.

So if you want to build credit and get cash back matching at the same time, we recommend checking out the Discover it® Secured Credit Card.

Do a lot of local spending? The Petal 1 card might be the card for you, thanks to its rewards for staying local.

In fact, the Petal 1 offers up to 10% cash back on your eligible purchases. That sounds impressive, but it comes with a big caveat: it applies to select local merchants (and your cash back rate could be much lower, like 2%). The Petal app will tell you what merchants qualify for those stellar cash back rates (including showing you the exact rate). So if you plan to shop locally anyway, Petal 1 could be a great way to maximize your cash back.

But since not all merchants participate, a lot of your Petal 1 purchases will earn 0% cash back. Kind of a bummer, we know. At least Petal 1 doesn’t charge an annual fee for its card. Plus, it has the highest credit limit of the personal credit cards for bad credit on this list (though it’s still a pretty low $5,000).

Put simply, the Petal 1 credit card won’t be right for everyone―but it can offer big cash back bonuses for people who prefer to keep things local.

We’ve mentioned that a credit card for bad credit should be a stepping stone to a better card―and the Platinum Secured from Capital One takes that seriously.

While Capital One isn’t the only card issuer to review your account automatically, it does it earliest. At just six months, Capital One will review your account to see if you can qualify for a better credit limit. And as long as you have your Capital One Platinum Secured Credit Card, Capital One will look at your credit history to decide if you can get your security deposit back (as statement credit). With regular reviews, you may find yourself upgrading to a better card in no time.

Of course, those perks do depend on your spending and payment habits. If you don’t build a better credit history by making regular, on-time payments, you shouldn't expect to qualify for a better credit card or deposit refund. And while you have the Capital One Platinum Secured Credit Card, you’ll have to settle for a measly $1,000 credit limit and no rewards.

In other words, we wouldn’t want to use the Capital One Platinum Secured Credit Card for years on end―but its regular reviews make it a great short-term stepping stone to better credit.

Want a card issuer that won’t check your credit at all? Meet the OpenSky® Secured Visa® Credit Card.

Unlike the other cards on this list, OpenSky doesn’t do a credit check as part of your card application. That means you’ll never get rejected because of your low FICO credit score, and it means your personal credit score won’t take a hit due to a hard credit check. (Most other cards offer check-free pre-approval, but ultimately do a hard check when you submit your final application.)

And don’t worry―while OpenSky doesn’t check your credit, it does report your credit card activity to credit bureaus. So you’ll still build credit. Just know that you pay for the lack of credit check with an unwaivable annual fee and absolutely no way to earn rewards.

But if you really don’t want your card issuer checking your credit score, the OpenSky OpenSky® Secured Visa® Credit Card was made for you.

There are good business credit cards for bad credit, like the BBVA Secured Business Credit Card (for people who prefer point rewards), the Spark 1% Classic (if you want an unsecured credit card), and the Business Edition® Secured® Visa Card (for a higher credit line). 

Plus, you can use personal credit cards, like the Bank of America® Customized Cash Rewards Secured Credit Card, to build your personal FICO score―even if you use them for business expenses.

No matter which credit card company you go with, make sure you use your new card wisely and make regular payments. Before long, you’ll be building credit and be on your way to an excellent credit score―and a better credit card. 

Need more working capital for your business than a credit card can offer? Check out our rankings of the best business loans for bad credit.

We looked at more than 40 personal and business credit cards in our research to find the best credit cards for bad credit. After identifying credit cards with low credit requirements, we compared factors like fees, interest rates, reward offers, and more to come up with our scoring and rankings.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Business.org has partnered with CardRatings for our coverage of credit card products. Business.org and CardRatings may receive a commission from card issuers.