Credit Cards for Bad Credit
Updated: Jan 9, 2026 at 12:43 AM EST
To open a new credit card, most financial institutions require an established credit history and a good or excellent credit score from their clients. Banks use the credit score to evaluate customers’ credit risk, i.e., the likelihood that the debt will not be paid back. They also greatly rely on the customer’s credit score when extending new credit. The lenders consider you a greater credit risk if your credit score is lower. And the opposite, you are deemed low risk if you have a high credit score.
The credit score is based on the information in your credit report and calculated by three major credit bureaus: Equifax, Experian, and TransUnion. The most important factor that has the highest impact on your credit score is your payment history. Missed or late payments can quickly ruin your credit score and limit your borrowing opportunities like getting a new credit card, car loan, or mortgage.
To fix a bad credit score or establish a credit history, banks have designed Secured Credit Cards. Like other types of credit cards, all Secured Cards report your payments to at least one of the credit bureaus. A Secured Card usually requires some form of collateral which in most cases is a cash deposit and matches your credit limit.
If you make payments on time, control your spending, and manage your debt well, a Secured Credit Card can be an excellent way to rebuild your bad credit or establish a credit history if you are new to credit. As is the case with all kinds of debts, consistency and discipline are crucial factors to your financial well-being and peace of mind.
Below is our list of the best secured credit cards for those with no or bad credit history.
