Best Unsecured Credit Cards for Bad Credit or Limited Credit 2024

We used an objective rating system to evaluate dozens of the best unsecured credit cards for bad or limited credit. We’ve identified the best cards to help you take control of your finances and avoid expensive fees that unsecured cards for bad credit often charge. Our top picks have low or no annual fees, offer credit-building tools and provide an avenue to build credit through responsible use. Some even earn rewards for spending.

An unsecured credit card is a credit card that doesn’t require a security deposit. Typically, the credit card company (or issuer) will perform a hard credit inquiry to decide whether to approve you for the card.

The primary difference between unsecured and secured credit cards is that secured cards require a security deposit. Because of this, secured credit cards often have lower credit requirements because they can use your security deposit to offset the loss if you don’t make payments on your card.

Aside from the security deposit, the benefits offered by unsecured and secured credit cards are similar. Both card types can help you build credit through responsible use. You can earn rewards with both types of cards, although unsecured credit cards generally offer better rewards and perks.

	Unsecured credit cards for bad/limited credit	Secured credit cards
Require a security deposit
Often come with high fees
Credit limit based on your deposit
Credit limit based on your credit history
Can earn rewards
Report payment history to credit bureaus

Whether you want to rebuild your credit or just need a card that’s easy to get, we’ve broken down the different types of credit cards for bad credit and limited credit below.

What do you want?	We recommend	Pros	Cons
Higher approval odds	Easiest credit cards to get	Accessible to people with bad or limited credit Often offer credit-building tools	Often charge high interest rates and fees Rarely offer rewards
Improve your credit score	Credit cards to build credit	Offer tools to build credit and boost credit score Typically offer path to graduate to card with better benefits	May charge high interest rates and fees May not offer rewards
Build credit from scratch	Credit cards for no credit	Access to tools designed for first-time credit users Accessible to students and others with limited credit history	May not offer sign-up bonus or rewards Can charge fees and high interest rates
Higher approval odds and better terms	Secured credit cards	Often have lower fees and interest rates than unsecured cards for bad credit, making them less expensive in the long run Potential to get security deposit back after upgrading to unsecured card	Must submit security deposit
Avoid a credit check/hard credit pull	No-credit-check credit cards	Applying does not affect your credit score	Typically require security deposit for approval Usually do not offer rewards or sign-up bonus
Rebuild credit after an event like bankruptcy	Credit cards to rebuild credit	Accessible to consumers with damaged credit Typically offer credit-building tools	Often charge high interest rates and fees Typically don’t offer rewards
Know in advance if you’re likely to get the card	Preapproved credit cards	Prequalification doesn’t damage credit score Many top-notch cards offer this feature	Prequalification/preapproval is not a guarantee of approval Applying for the card will still require a credit check

• Start with a secured credit card

  Open a secured card first and use it responsibly, making on-time payments each month to improve your credit score.

• Apply through a bank, credit union or store

  Applying for a credit card through a financial institution or business you already have a working relationship with may increase your chances of approval. Plus, many store cards come with lower credit requirements (beware, though, as they often have high interest rates).

• Pay your bills on time

  Few factors affect your credit as much as payment history. By paying your bills on time, you can build up a strong credit history and qualify for a good unsecured credit card.

• Pay off debt

  One of the best ways to boost your credit score is to pay off credit card debt. Your credit utilization ratio — how much you owe divided by your total credit limit — makes up a significant part of your credit score.

• Prequalify

  Some card issuers allow you to check eligibility for a card before officially applying for it. Prequalification relies on a soft credit inquiry, which doesn’t affect your credit score, and lets you know whether your credit is good enough to get an unsecured credit card.

Whether you apply for a secured or an unsecured card, it’s important to use it responsibly in order to build a positive credit history. This includes:

1. Paying on time and in full each month. Paying your credit card bill on time is the most important thing you can do for a good credit score. Plus, by paying in full by the statement due date, you can avoid interest charges.
2. Keeping your card account active. You need to actually use your card so that the payment activity can be reported to the credit bureaus. A good way to do this is to put a recurring charge on your card (like a Netflix or Spotify subscription), then set up automatic payments so your bill is always paid in full and on time.
3. Not overspending. Maxing out your credit card will hurt your credit score, so it’s best to use less than 30% of your available credit. This also helps prevent credit card debt.

To bring you the list of credit cards for building credit, we use an objective rating and ranking system that compares features across a large set of credit cards (over 200 of them from over 50 issuers). We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor statistics.

For credit-building cards, we devote a large part of the score to features that help build credit — we want to help you locate cards that don’t cost a lot to own and get help you upgrade to better card offers.

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We detract points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.

Note, that our ratings are a starting point for comparing and choosing the best credit card for building credit. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories and which benefits you value to choose the best card for you.