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Credit cards for bad credit are specifically designed to help you improve your credit score by establishing positive payment history and using credit responsibly. Most credit cards for bad credit are secured cards, as the required security deposit reduces the risk for lenders, making them easier to get.

Some secured credit cards can offer rewards, usually in the form of cash back, although this is not as common as in the prime credit card market. The primary aim with these cards is responsible use to raise your score for better cards in the future, so rewards are a bonus rather than a primary benefit.

For example, the Discover it® Secured Credit Card is considered one of the best for rewards because it offers 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases per quarter) and 1% on all other purchases.

The Discover it® Secured Credit Card requires a refundable security deposit, starting at a minimum of $200, which then becomes your credit limit. Also, the card has no annual fee, which makes it a cost-effective tool for building credit.

What's more, with a secured card from Discover, you can upgrade to an unsecured card and get your deposit back after six consecutive on-time payments and six months of good status on all of your credit accounts.

Another good option is the Chime Card™. It's a secured card with credit-building features and 1.5% cash back rewards on rotating categories (with direct deposit). Plus, the Chime Card has no monthly fees, annual fees, or overdraft fees.

Secured credit cards report your payment history, credit utilization, and account activity to the major credit bureaus (Equifax, Experian, TransUnion) just like regular cards, allowing you to build or rebuild credit by demonstrating responsible behavior, such as making on-time payments and keeping balances low.

tags : Credit Cards Credit Score Build Credit

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.