The Best Credit Cards for Poor Credit of 2018

Have a low credit score but need a credit card? Here’s a list of credit cards to check out.

Obtaining a credit card when you have poor credit can be quite the challenge.  Often times, credit card issuers want nothing to do with your 600 FICO score because you’re seen as a risk.  Fortunately, if you look hard enough, there are a few unsecured credit cards tailored to consumers on the lower end of the FICO score ladder.

However, while you may be able to obtain unsecured credit, it will come at a price.  To compensate for the risk involved, card issuers generally charge high interest rates as well as mandatory annual fees.  You’ll find several credit cards for individuals with poor credit below.  If you own a card with a low interest rate and low fees that hasn’t made our list, please let us know and we’ll gladly add it.

Best Credit Cards for Poor Credit

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Capital One® Secured Mastercard® – There may be a temptation to own an unsecured credit card to build your credit but I believe the best option for those with poor credit is the Capital One® Secured Mastercard®.  There is no annual fee to own this card; a very reasonable 24.99% purchase APR and a handful of other perks that make this card an attractive option to improve your credit.

Your initial deposit needs to be $49, $99 or $200 based on your creditworthiness and after you receive your initial credit line, you can deposit more money for a higher credit limit.  After you make five successful monthly payments on time, you’ll have access to yet another higher credit limit.  The late payment fee is $35 and this card reports to all three major credit bureaus.  After owning the Capital One® Secured Mastercard® for a long period of time, you may be eligible to convert this card to an unsecured Capital One credit card.

  • Processing Fee – $0
  • Annual Fee – $0

Credit One Bank® Unsecured Platinum Visa® – Our favorite unsecured line of credit comes from Credit One Bank.  The Credit One Bank® Unsecured Platinum Visa® has a reasonable annual fee with a rewards program that provides cash back on your purchases.  The ongoing APR is a very nice 16.99% – 24.99% variable and there is a $19 authorized user participation fee, if you add someone else to your account.

The annual fee to own this card is $0 – $75 the first year and $0 – $99 each year after that.  The actual annual fee you receive will be based on your credit profile, but if you have bad credit, you can expect to see the high end of that scale.  As you improve your credit and make timely monthly payments, you can apply to have the annual fee reduced (or removed completely).  When you apply for the Credit One Bank® Unsecured Platinum Visa®, you’ll receive one of five cash back rewards programs.  Each program is a touch different, but they all offer 1% cash back on select everyday categories, OR 1% cash back on all purchases.  A nice incentive that credit cards for those with poor credit rarely offer.

  • Processing Fee – $0
  • Annual Fee – $0 – $75 the first year; $0 – $99 after that
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OpenSky® Secured Visa® Credit Card – Another great secured credit card option is the OpenSky® Secured Visa® Credit Card.  While you will find a small annual fee (of $35), there is no initial processing fee or other fees you have to worry about.  The purchase APR is a strong 19.14% (which is the best on our list) and this secured card reports monthly to all three major credit bureaus.

This card is perfect for those with poor credit or no credit, as the OpenSky® Secured Visa® Credit Card requires no credit check and no checking account.  It’s important to note that this card does charge an inactive fee and dormant fee.  If you’re account is inactive for 12 consecutive months, you will be charged $10 per month after that.  After 36 months of no activity, an additional $10 dormant fee is applied.  Make sure if you own this card, you’re using it routinely.

  • Processing Fee – $0
  • Annual Fee – $35

Milestone® Gold Mastercard® – Getting a little higher on the annual fee scale, the Milestone® Gold Mastercard® is likely the best unsecured card for the worst credit situations.  Milestone notes that previous bankruptcies are OK so improving your very poor credit is likely worth the $35 – $99 annual fee (based on creditworthiness).

The ongoing purchase APR is 23.9% and the penalty APR (if you miss a payment) is 29.9%. There is a $38 late payment fee, $38 overlimit fee and $38 returned payment fee.  The Milestone® Gold Mastercard® reports to all three major credit bureaus and it also has a surprising cash advance feature.  For the first year you own this card, there no fee for a cash advance.  After the first year, the cash advance fee is a more standard $5 or 5% (whichever is greater).

  • Processing Fee – Up to $50
  • Annual Fee – $35 – $99

The Worst Bad Credit Credit Cards

First PREMIER® Bank MasterCard® Credit Card – This unsecured line of credit is going to show you just how expensive building your credit can be without using a secured credit card.  The First PREMIER® Bank MasterCard® Credit Card includes a whopping 36% interest rate on purchases.  Anyone with poor credit that is able to obtain an unsecured line of credit should NEVER carry a balance.  There is also a $95 one time program fee and an annual fee that varies between $75 and $125 for the first year and $45 to $49 every year after that.

The higher your initial credit limit, the higher your initial annual fee.  Late payment fees are up to $38 and any return payment fees are up to $35.  In addition to the annual fee, would you believe this card charges you a monthly fee as well?  That fee is waived during the first year but after year one, the monthly fee is $6.25 per month – $10.40 per month.  So on top of a big interest rate, a processing fee and an annual fee, First PREMIER hits you with a recurring monthly fee.

No thanks.

  • Processing Fee – $95
  • Annual Fee – $75-$125 the first year; $45-$49 every year after that
  • Monthly Fee – Waived the first year, then $75 or $124.80 annually (broken into 12 months).

Total VISA® Unsecured Credit Card – We’re in a similar position with the Total VISA® Unsecured Credit Card.  This is an unsecured credit card that charges a processing fee, annual fee and monthly maintenance fee after the first year.  The APR isn’t quite as bad as the First PREMIER above … just 29.99% but you can still see the difference between a card like this and one of the better options above.

The late payment fee is $38 and the return payment fee is $38.  There is a $29 card fee for each additional card requested (for an authorized user).  This card has no rewards program but does report to the 3 major credit bureaus monthly.  The Total VISA® Unsecured Credit Card also includes the rare cash advance feature of no fee for the first year.

  • Processing Fee – $89
  • Annual Fee $75 the first year, $49 every year after that
  • Monthly Fee – Waived the first year, then $75 annually (brown down to $6.25 per month)
Topics: Credit Cards
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16 Responses to “The Best Credit Cards for Poor Credit of 2018”

  1. I have a 558 credit score an bad banking history it’s been more than 2 years since I closed my 3 credit cards because I had no control in understand in utilization an the interest flew up an I owed a ton of money I couldn’t afford to pay but I learned how important it is to have good credit for future perference an I working towards my goal out of the blue I was indeed blessed with a capital one credit card platinum an it’s not the sercured one I was approved 2 weeks ago an it gave me a small credit limit which I’m happy with I’m taking the responsibility to stay under 30 percent of my credit line an pay 3 days before the due date also because the credit bureaus report 3 days later an you won’t see a change in credit score for a couple of weeks also after bill is payed you can’t you your credit card right a way I heard at least wait a week or two so to make a long story short it’s always good to not give up to what you want my credit report is bad I have crazy inquiry an they approved me I guess their giving peoplele with a lack of credit a chance so keep looking for those cards an first permier is a great card to build credit as well. So dont give up always read everything an follow the rules of a credit card it’s not free money it’s feedom to a better future to build credit to getting what we really wish for like a house boat cars etc. But I really hope this helps …

  2. Sonja Buntman

    Hi Rob,
    One of the factors in rebuilding credit is indeed credit utilization but if in someones credit report lies accounts unpaid yet soon to fall off their report due to age it may be best to just wait a little longer.
    Since charge offs and such only last 7 years paying on the older credit accounts will bring them back up to the top of the report along with all the ugly that caused the scores to fall in the first place. Starting the cycle for another 7 years from the date they are paid upon lets new creditors still judge you from the past.
    Others have told me if the accts causing the damage are going to fall off within 1-3 years, depending on personal preferance to how long you can wait then just to let them fall off. If needed open a secured credit card with the money you have to begin building a positive rating on your report, most companies with move you to an unsecured account after a year, returning your deposit plus increases soon following.

  3. Can I really repair my credit history/score by paying off what is on my credit report? I’ve heard different sides of info/opinions but I’m confused. My score is in the high 400s?

    • Rob Berger

      Jenn, one key factor in your score is called credit utilization. We talk about it in an interview with FICO’s Tom Quinn–https://www.doughroller.net/credit/interview-ficos-credit-expert-tom-quinn-podcast-episode-002/

  4. Anonymous

    After reading your responses to comments, I am confused. Do the secure cards listed in this article help build credit or not? Thank you and you are doing a first class job of managing this blog.

  5. Hello,

    Which is the best card that doesn’t involve a security deposit? Do any of these NOT require a security deposit? The annual fee – is that automatically charged? My husband has credit score in the 400s.

    • Rob Berger

      All of the secured cards require a security deposit. That’s why the credit card company is willing to extend credit to those with low credit scores. The Credit One cards above, however, are not secured cards so they don’t require a security deposit.

  6. Qualifying for a credit card can be tough if you have a poor credit record, but a secured credit card may be one way you can obtain one. It’s also the best way to build or rebuild credit. Unfortunately, a lot of people don’t understand how a secured card works.

  7. Just an FYI, I was trying to use the valuable info you give on this page but the link to the
    Applied Bank® Secured Visa® Gold Credit Card, no longer works. Instead of taking me to an official looking site where I can apply for the card it took me to credit cards.com, another helpful site where you can search by specific credit score ranges and by brand such as visa or MasterCard plus some others and includes many more search refinements that are very helpful but the card I was looking for from your list above wasn’t there and as you suggested it as one of the best credit building cards I really wanted to apply for that one specifically. Anyway just an fyi

  8. Doug Younker

    Now I found another layer to consider. Health care costs wrecked me. I need a card for online purchases of what local retailers don’t carry in my rural location. For the moment a prepaid debit card is route I’ll take. In time I’ll get a secured card to build my credit rating back up. $2-$5 monthly fee isn’t that expensive, when there should never be no interest to pay, if I pay myself back on time every month.

    • Doug Younker

      Yes I understand I should have used the bad credit secured credit card. Higher interests rates that regular secured credits cards, interestingly similar monthly fees.

  9. Avery Lopey

    I do not even understand how I ended up right here, however I assumed this put up was once good. I don’t realize who you might be however certainly you are going to a famous blogger when you aren’t already 😉 Cheers!

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