Poor credit can crash your creditworthiness to card issuing companies. Specifically, with Chase, which mostly accepts excellent credit scorers, your chances are slim. Currently there is only one Chase card geared towards those with bad credit, the Chase Freedom Rise. However, I wanted to give you other options as well, and have included cards from other issuers to help you find the right one for you.
Our Top Credit Card for Bad Credit Recommendations
You might assume that bad credit means the end of your credit-building journey. That is not the case. I have picked the cards that offer amenities other than helping you to hold on for dear life.
Although you can get approved for the best Chase credit card for bad credit, you can weigh more options.
- Best Overall: Chase Freedom Rise
- Best for Flat Rate Cash Back: Capital One Quicksilver Secured Cash Rewards
- Best for Rewards: Discover It Secured
- Best for No Credit Check: OpenSky Secured Visa
- Best for Rebuilding Credit: Capital One Platinum
Best Overall Card for Bad Credit: Chase Freedom Rise
A significant feature of this card, among others, is that you do not have to pay a security deposit. Also, if you make timely payments for the first six months, Chase extends your credit limit. It will help you balance your credit utilization ratio and redeem or repair your score.
Chase Freedom Rise is the best card that rewards you for responsible behavior. You get a $25 statement credit if you sign up for automatic payments. It is also a sort of welcome bonus. Most of the other credit-building cards do not have welcome offers.
You are exempt from the annual fee like most of this card’s counterparts. However, a high APR of 26.99% can dampen this aspect. It is variable. Nonetheless, you might find it outrageous if you plan to carry a statement-to-statement balance. The best practice is to pay off your dues each month to avoid APR.
I was overwhelmed when I found out that you can earn 1.5% cash back on all your purchases! You will not find this feature in most cards for bad credit. Also, you can make as much as you want because this offer has no reward cap.
The actual charm lies in the perks this card offers. Their value is the same as other high-tiered Chase cards. Most of these benefits are unusual for typical Credit-redeeming cards.
- You get up to $6,000 coverage for trip cancellation or delay, so your money is not wasted.
- Chase allows up to $50,000 purchase compensation per account. If you bought a product through Freedom Rise that arrived damaged or was lost, the bank pays you.
- You get access to My Chase Plan. It is a program that allows you to clear significant payments in a series of small installments. You will feel at ease knowing you won’t have a monthly financial dent.
- You get an extra year extended warranty on selected US-based products. The original warranty should be at most three years. You can avail free repairs or replacements for one more year.
- You can get approved for Freedom Rise quicker if you open a Chase account for a minimum of $250. You don’t need to keep that amount in your account after approval. You can withdraw it.
- It is an unsecured card, i.e., you don’t pay a security deposit.
- You get 1.5% cash back on all purchases. You can earn and redeem credit simultaneously.
- You have to pay a $0 annual fee. It saves you money.
- You get trip cancellation compensation along with purchase damage coverage.
- It charges a high interest of 26.99%. You must not carry a monthly balance to avoid paying it.
- It does not offer a conventional welcome offer.
Best Flat Rate Cashback Card for Bad Credit: Capital One Quicksilver Secured Cash Rewards
You will find that Capital One Quicksilver Secured Cash Rewards does a good job for a bad credit card. You have to pay a $200 security deposit, like most cards in this category. That said, you get it back when Capital One ensures you have a responsible payment record.
There is no specific time frame for when you will get your deposit back, though. I find it vague compared to the condition for Freedom Rise. You don’t need to hold your $250 for a period there. On the better side, you can get a credit limit increase in six months for paying on time. It’s also one best family credit cards.
In my opinion, this card is generally low cost like Freedom Rise because:
- It has a $0 annual fee.
- Your security deposit is refunded.
- It has a flat-rate cashback reward margin.
You get a flat 1.5 % cash return on everyday purchases. You do not have to worry about a reward cap here, as you can earn unlimited. In comparison to most credit-building cards that have only a 1% cash return in this category, Quicksilver Secured is generous.
Additionally, you get a 5% cash back if you reserve hotels and rental cars through Quicksilver Secured. It is good news for you if you are a traveler.
- You have to pay a $0 annual fee on this card, which helps you to focus on clearing your debt.
- It offers a generous flat rate cashback of 1.5% on recurring expenses. Additionally, you get a 5% cash back on hotel and rental car reservations through Capital One Quicksilver Secured.
- You can apply for it on a soft credit check. Although you get a complex review once you apply, you will have decided after ensuring you will get it.
- Although Quicksilver Secured collects a security deposit, you can have it back as a statement credit if you keep paying on time.
- The APR is dizzyingly high. If you carry a balance, you must pay a 30.74% interest.
- There is no welcome offer or an initial grace period for you to settle into a payment routine gradually.
Best Rewards Card for Bad Credit: Discover It Secured
You will find the intro offers of Discover It Secured above average compared to its counterparts in the market. You will incur a 10.99% APR for the first six months before you switch back to the unsettling 30.74% variable ongoing rate.
Moreover, the company matches your cash back dollar-by-dollar at the end of your first year. If you earned a $100 cashback in the initial year, you will get an extra $100 before another year starts. Also, you have to pay a 3% intro charge for balance transfers. Most bad credit cards do not offer this facility.
Your credit limit for this card is the exact amount of security deposit you paid. You can pay any amount from $200 to $2,500. However, you can only get your deposit back once you upgrade or close your account with full payment. With zero annual fees and upgrading to an unsecured card after seven months, this is best for those looking for credit card rewards programs.
I find the Discover It Secured to be the best for its rewards. You get a cashback on bonus categories and the usual 1% return on other purchases. A 2% on gas stations and restaurants is atypical for other bad credit cards. These categories have a spending cap of $1,000 every four months, though. fquick
- It matches the cashback you earned throughout your first year. You get a solid dollar-for-dollar match before starting your second year with Discover It Secured.
- You get a chance for an upgrade card after seven months of responsible payment behavior.
- You get an introductory APR of 10.99% on balance transfers for the first six months. However, the ideal practice is to avoid carrying a balance.
- You get a dual opportunity to earn through bonus categories and everyday purchases.
- You must pay a high APR of 30.74% if you carry a balance. You are charged a 5% balance transfer fee for each transfer.
- You can only get this card if you have an account.
Best No Credit Check Card for Bad Credit: Opensky Secured Visa
You get the best edge here among other cards because it doesn’t require a credit check. The OpenSky Secured Visa is a pure credit-building card without rewards or additional perks. You should consider it as a temporary arrangement before you upgrade to a better card.
It has a low APR, seconded by Freedom Rise only. A 25.64% variable interest rate is unusual with cards for bad credit. You are at an advantage if you plan to carry a monthly balance. However, I think it is a minimal advantage against additional charges:
- Up to 40% for late payments
- $25 return payment fee
- 5% cash advance charges
- 3% foreign transaction fee
You can avail yourself of the characteristic perks of the Visa network, like all Visa cards. You have a $0 liability in case of fraudulent activity on your card. Also, Visa offers 24/7 surveillance if your card is stolen.
You will get an ID Navigator that alerts you if your identity is found on the dark web. Furthermore, you will get pay-per-use roadside assistance if you have an accident.
- You do not need a credit check to get approved for this card. It is beneficial because your credit score is reduced upon a hard check.
- It has perks that focus on managing your financial behaviors so that you can upgrade quickly.
- It has a higher credit limit of $3,000 than most credit-building cards. It allows you enough room to maintain a low utilization ratio.
- You have to pay a $35 annual fee and several other charges. These fees can make your card expensive.
- This card does not have a rewards system. You must get a higher-tiered card to earn cash back or reward points.
Best Rebuilding Credit Card for Bad Credit: Capital One Platinum Secured
My favorite feature of Capital One Platinum Secured is its flexible security deposit. You can get approved for a starting $200 limit by paying $49, $99, or $200. It is peculiar as most cards for bad credit require the exact deposit amount as the credit limit.
Capital One refunds your deposit as a statement credit if you pay on time. Although there is a massive 30.74% APR for balance carriers and no rewards, you don’t incur a foreign transaction fee. You can get an upgrade after six months of responsible usage like some credit building cards.
- You can get a higher credit line than your security deposit. The minimum deposit amount is $49 against a minimum $200 credit line.
- You get your deposit back as a statement credit if you maintain a positive financial attitude.
- You can access Credit Wise from Capital One to keep track of your credit score. As soon as you reach good or excellent credit, you can apply for a better card.
- This card does not support a reward system.
- You have to pay the highest APR if you carry a monthly balance.
Features to Consider Before Getting a Credit Card for Bad Credit
You must be wary while choosing a card to redeem your credit score. You have already been through losses. Instead of rushing to lay your hands on the first card you find, know what to look for. You need a card that protects your present and builds your future.
Comparison of Credit Cards for Poor Credit
|Type of Card
|Chase Freedom Rise
|1.5% flat rate cash-back on all purchases;$25 statement credit on signing up for automatic payments within the first three months
|Capital One Quicksilver Secured Cash Rewards
|1.5% flat rate cash-back on all purchases; 5% cash-back on hotel and travel bookings
|Discover It Secured
|28.24% variable; 29.99% on cash transfers;10.99% intro APR for six months on balance transfers
|1% cash back on all purchases; 2% cash back on gas stations and restaurants
|Capital One Platinum Secured
You should decide if a secured or unsecured card is a better option for you. Although you do not have to pay collateral on unsecured cards, they have downsides. You will likely get a low credit limit, few or no perks, and high additional fees. Chase Freedom Rise is an exception with a $0 annual fee, credit and cashback rewards, and a higher credit limit.
Contrarily, Secured cards allow more room to spend and refund your security deposit if against a record of timely payments. They are easier to get approved for bad credit, too. You should look for a card that collects the minimum security deposit.
You will find that most cards for bad or low credit have an exorbitant interest rate. Although the average interest on all the other cards is around 23%, credit-building cards don’t. You might even have to pay up to 30% APR on some cards.
Your credit score also determines your interest rate. The lower your score, the higher the rate you have to pay. Do your research to find a card that is as close to the median rate as possible. If you plan to carry a monthly balance, you should get a card with a lower APR.
We all will be in a hurry to get a card to reinstate our creditworthiness. However, this should not let us skip reading the fine print. You must understand all the fees and additional payable charges your selected card incurs.
The card issuing company can charge you for:
- Late payments
- Missed payments
- Spending over the limit
- Balance transfers
- Cash advances
- Returned payments
Check for a grace period to avoid most of these expenses.
Remember to check your credit score before setting out on the card hunt. You might have a fair score instead of a poor one. You can apply for better cards if that is the case. If not, go for the highest limit you can get.
The benefit of a higher limit is that your credit utilization ratio will be less. The lower the ratio, the higher your score will be. If your credit limit is $300 and you spend $150, your credit utilization is 50%.
However, the best ratio to build a credit score is less than 30%. An increased credit line will allow you to plan your expenditures better.
What Is the Minimum Credit Score to Get a Credit Card?
The minimum credit score to get a card is 700 or above if you want a conventional card. You can get a secured card for a score below it.
Which Credit Card Does Not Require a Credit Score?
A prepaid card does not need a credit score. You will pay the card company, and they will set a credit limit against that amount. You will have to pay again to renew that limit.
Can I Build Credit Without a Credit Card?
Yes, you can increase your credit score without a credit card by becoming an authorized user. Alternatively, ask your landlord and utilities to register your timely payments. Your creditworthiness will increase that way.
I recommend Freedom Rise as the best Chase card for bad credit. Its comparatively low APR and high-tier perks, along with an early credit limit increase, make it a wise choice for credit-builders. You must consider the security deposit, interest rate, and allowed credit limit to get a suitable card. Moreover, read the fine print to know about all the additional charges.