Best Low-Interest Credit Cards for People with Bad Credit

If your credit score took a hit and you think there’s no way out… take a breath! The truth is, you can get a decent credit card — and yes, even one with lower interest rates — even if your credit is not looking great.

A lot of people in the U.S. are in this situation, especially after missed payments, collections, or simply because they never built credit in the first place.

In this guide, we’re breaking down everything you need to know about low-interest cards for bad credit, how they work, what to look for, and the best options available in 2025. Let’s get into it!

What’s Considered “Bad Credit”?

Let’s be real — hearing that you have “bad credit” can sound like the end of the world, but it’s actually more common than you think. Life happens.

Maybe you missed a few payments, went through a rough patch, or just never had the chance to build credit properly. Whatever the reason, knowing where you stand is the first step to turning things around.

In the U.S., credit is measured using something called a FICO score — it ranges from 300 to 850. If your score falls below 580, it’s considered “bad.” Between 580 and 669 is “fair,” and anything above that is already on the right track.

Bad credit can happen for a bunch of reasons:

Late or missed payments
Accounts that went to collections
Maxing out your credit cards
Having little or no credit history at all

When lenders see this type of score, they flag you as “high risk,” which usually means fewer approvals, higher interest rates, and smaller credit limits. But don’t panic — having bad credit doesn’t mean you’re stuck there forever. Let’s break down how to work with what you’ve got.

Can You Get a Low-Interest Card with Bad Credit?

Absolutely! It’s not easy, but it’s definitely possible. Some credit card companies actually focus on helping people rebuild their credit. These cards may require a deposit (secured cards), but some don’t.

The key is to look for:

Lower-than-average APRs
Cards that report to all three credit bureaus (Equifax, Experian, TransUnion)
No sneaky fees

So yes, you can find cards designed to help you get back on track — without breaking the bank.

What to Look for in a Credit Card for Bad Credit

When your credit isn’t looking so hot, it’s super tempting to jump on the first card offer you see online — especially if it promises “instant approval” or “no credit check.” But hold up. A lot of these flashy deals vêm com taxas escondidas, juros altíssimos e termos que mais atrapalham do que ajudam. E ninguém quer cair numa furada dessas, né?

So, before you hit that “Apply Now” button, here’s what you should be looking for in a credit card when you have bad credit. These details can make a huge difference — not só no seu bolso, mas também na sua chance de reconstruir o crédito de verdade.

APR (Annual Percentage Rate)

This is basically the interest rate the card charges if you don’t pay your full balance. And for folks with bad credit, some cards hit you with APRs of 29% or even more. That’s heavy!

What to look for: Try to find cards with an APR below 25% if possible. The lower, the better. Even a few percentage points can save you serious money in the long run — especially if you ever carry a balance.

Annual Fee

Some cards charge you just for existing — we’re talking $75 to $99 a year, even if you don’t use the card much. And sometimes, they break it down into monthly “maintenance fees” that sneak up on you.

What to look for: Go for cards with:

No annual fee (ideal)
Or a very low fee that’s actually worth it (maybe if the card offers cashback or good upgrade options)

Don’t pay just to have a card in your wallet — unless it’s really helping you rebuild your credit.

Card Type: Secured vs. Unsecured

You’ll usually come across two types of credit cards:

Secured cards: You make a deposit up front (like $200), and that becomes your credit limit. They’re easier to get approved for, even if your score is low.
Unsecured cards: No deposit needed, but harder to get with bad credit and often come with higher fees.

What to look for:
If you’re just starting out or trying to bounce back, a secured card might be the way to go. Just make sure the issuer reports to all credit bureaus (we’ll talk about that next). Later on, you can move to an unsecured card once your score improves.

Credit Reporting

This part is crucial. The whole point of getting a credit card when you have bad credit is to rebuild your score, right? That only happens if the card issuer reports your activity to the three main credit bureaus: Equifax, Experian, and TransUnion.

What to look for: Make sure the card reports to all three bureaus — not just one. That way, your on-time payments and good usage habits actually help boost your credit across the board.

Limit Increases & Upgrade Opportunities

When you’re starting with bad credit, you’ll probably get a low credit limit — maybe $200 or $300. That’s fine to start. But it’s even better if the card gives you room to grow.

What to look for:
Choose a card that:

Offers automatic limit increases after a few months of on-time payments
Lets you upgrade to a better, unsecured card down the line (some even return your deposit if you started with a secured one)

A card that grows with you means you won’t need to open a bunch of new accounts later — and that’s great for your credit score.

Before applying, take a few minutes to read the fine print. Look out for:

Monthly service fees
Hidden processing charges
Fees for checking your balance or making payments

If it feels shady or confusing, skip it. You want a card that helps, not one that makes things worse.

Top 5 Low-Interest Credit Cards for Bad Credit (2025)

Finding a good credit card when your score is low can feel like trying to win the lottery — tons of options out there, but most come loaded with high interest, crazy fees, or just flat-out rejections.

The good news? You do have solid choices. Whether you’re rebuilding after a few bumps or just starting from scratch, there are cards in 2025 that keep the interest rates low and actually help you move forward.

Below, we’ve rounded up 5 of the best low-interest credit cards for bad credit. Each one has its own perks, and all of them are designed to give you a real shot at getting your credit back on track — without drowning in fees or fine print.

1. OpenSky® Secured Visa® Credit Card

If you’re tired of getting denied every time you apply for a credit card, the OpenSky® Secured Visa® might be your ticket in. This one doesn’t even check your credit score — seriously. All you need is a refundable deposit, and you’re good to go. It’s a solid option if you’re just looking to rebuild your credit without all the hassle and rejection.

APR: 25.64% (fixed)
Annual Fee: $35
No credit check required!
Requires refundable deposit
Great for rebuilding without worrying about approval

2. Capital One Platinum Secured Credit Card

Looking for a starter card that actually gives you a shot at growing? The Capital One Platinum Secured is a great pick. Depending on your situation, your deposit could be as low as $49 — which is way easier on the wallet. No annual fee, and if you use it right, Capital One might even upgrade you in a few months.

It’s a smart move if you want to rebuild without staying stuck.

APR: 30.74% (variable)
No annual fee
Deposit can be $49, $99, or $200 based on your profile
Can be upgraded after a few months of good use

3. Discover it® Secured Credit Card

Trying to rebuild your credit but still want some real perks? The Discover it® Secured card is one of the few that actually rewards you while you work on your score. You get 1–2% cashback on everyday purchases, no annual fee, and it reports to all three credit bureaus. So you’re not just fixing your credit — you’re earning a little something back too.

APR: 28.24% (variable)
No annual fee
1–2% cashback on purchases
Reports to all three bureaus

4. Credit One Bank® Platinum Visa®

If your credit’s not in great shape but you still want a shot at earning some cashback, the Credit One Bank® Platinum Visa® could work for you. It’s one of the few unsecured cards that accepts people with poor credit and still gives 1% cashback on select purchases.

Just watch out for the annual fee — it’s not the cheapest, but it might be worth it if you’re rebuilding and want some rewards along the way.

APR: up to 29.74% (variable)
Annual Fee: $75–$99
Accepts applicants with poor credit
1% cashback on eligible purchases

5. Mission Lane® Visa® Credit Card

Want a card that keeps things simple and doesn’t require a deposit? The Mission Lane® Visa® is a solid unsecured option for people with less-than-perfect credit. Depending on your profile, you might even skip the annual fee.

What stands out here is the transparency — no confusing fine print or hidden traps. Just a straightforward card that helps you rebuild without the drama.

APR: 26.99%–29.99%
May or may not have an annual fee (depends on application)
Unsecured card (no deposit required)
Transparent terms, easy to manage

Secured vs. Unsecured Cards: Which One Is Better?

If you’re rebuilding credit, one of the first decisions you’ll need to make is: secured or unsecured? And no, it’s not just a fancy banking term — the difference really matters.

Let’s break it down in real-life terms so você não cai em cilada.

Secured Credit Cards

These are the go-to option for most people starting from scratch or with bad credit.

You pay a deposit upfront — usually around $200.
That deposit becomes your credit limit. Spend $200, pay it off, reuse it.
Way easier to get approved, since the deposit lowers the risk for the bank.
Best for rebuilding your score slowly and safely.

Think of it like training wheels: you’re learning to manage credit, but you’ve got some backup in case things go sideways.

Unsecured Credit Cards

These are the “regular” cards you’re probably used to hearing about.

No deposit required — which sounds great, but…
Harder to qualify for if your score is low.
Higher risk = higher fees in many cases.
May come with lower limits and fewer perks for credit rebuilders.

They’re awesome once you’ve built some credit — but not always the best starting point if your score’s in rough shape.

So, Which One Should You Choose?

If your credit is poor and you’re just trying to get your foot in the door, secured is usually the smartest move. Use it the right way — pay on time, keep your balance low — and within 6 to 12 months, you could qualify for an unsecured card with better terms.

Some secured cards even upgrade you automatically once you prove you’re responsible — and you get your deposit back. Win-win!

How Interest Works on These Cards

When it comes to credit cards — especially the ones aimed at people with bad credit — understanding how interest works is a big deal.

Most of these cards come with a higher APR, or Annual Percentage Rate, which is the interest you’ll owe if you don’t pay off your full balance by the due date. And trust me, even a “low” APR can add up fast if you let the balance sit.

Here’s the deal: if you pay your bill in full every month, you won’t pay a single cent in interest — simple as that. But if you carry a balance, that’s where the charges start piling up. Interest gets added daily to whatever amount you still owe, and over time that can grow into something way bigger than you expected.

For example, with a 28% APR and a $1,000 balance, you might end up paying over $20 just in interest each month — and that’s without making any new purchases.

So even if the card advertises a “lower rate for bad credit,” the best way to avoid extra costs is to always try to pay off your full balance. Keeping that balance at zero whenever possible isn’t just good for your wallet — it’s also one of the best habits you can build while improving your credit.

How to Use These Cards to Rebuild Your Credit

Using a credit card the right way can be one of the fastest and most effective paths to rebuilding your score — but only if você joga limpo com o sistema. Aqui vão as práticas que realmente funcionam:

Keep your usage under 30% of your credit limit

If your card has a $300 limit, try not to spend more than $90 at a time. High utilization sends a bad signal to credit bureaus, even if you’re paying on time.

Pay your bill on time, every time

Even one late payment can do serious damage to your score. Set up automatic payments or calendar alerts to make sure you never miss a due date.

Always make at least the minimum payment

Skipping a payment is way worse than paying a little. If things apertarem no mês, pague o mínimo para proteger seu histórico.

Keep your card open, even if you’re not using it much

Closing a credit card can lower the average age of your accounts, which can knock points off your score. Leave it open to help build long-term credit strength.

Use the card monthly for small, manageable purchases

Buy something you were going to pay for anyway — like gas, groceries, or a Netflix subscription — and pay it off quickly. This builds a solid, consistent credit history over time.

Stick to these habits for 6 to 12 months, and chances are your credit score will start going up — slow and steady, but real and lasting.

Common Mistakes That Make Things Worse

Even with the best credit card for bad credit in your wallet, the wrong moves can still drag your score down — or keep it stuck no mesmo lugar. Rebuilding your credit takes more than just having the right tools — it’s about using them the right way. Unfortunately, a lot of people fall into the same traps without even realizing it.

Don’t let these common mistakes slow down your progress:

Only paying the minimum amount due
Paying late or skipping payments
Maxing out your card
Applying for too many cards at once
Closing your account too soon

Avoid these slip-ups, and you’ll be back on track faster than you think — with fewer fees and way less headache.

How to Improve Your Chances of Getting Approved

Getting approved for a credit card when you have bad credit isn’t always easy — but a few smart steps can seriously boost your odds. The more prepared you are, the more likely the bank is to see you as low risk, even if your score isn’t great.

Here’s what you can do to improve your chances:

Pay off old debts — Even small or partial payments show that you’re making an effort to take control of your finances. This helps lower your credit utilization and improve your profile.
Correct any errors on your credit report — Mistakes happen more often than you think. Head to AnnualCreditReport.com to check for issues like incorrect balances, accounts you don’t recognize, or late payments that were actually paid on time.
Show proof of income — Lenders want to know you have money coming in. Even if you work gigs, freelance, or get paid in cash, having documentation like bank statements or pay stubs helps show you can handle monthly payments.
Have a bank account or consistent payment history — A checking or savings account with regular activity adds credibility. If you’ve been paying rent or utility bills on time, that also helps build trust.
Don’t apply again right away if you’re denied — Each application triggers a credit check, and too many in a short time can hurt your score even more. If you get denied, take a few months to improve your profile before trying again.

By following these steps, you’ll put yourself in a stronger position — not just to get approved, but to qualify for better terms over time.

Tools to Estimate Interest Before You Apply

Before you apply for any credit card — especially when you’re rebuilding your credit — it’s important to know exactly what kind of deal you’re signing up for.

Guessing the interest or assuming it’s “probably fine” can lead to some expensive surprises later. The good news is, there are free and easy-to-use tools that help you see the full picture before you commit.

Bankrate.com – Credit card interest calculators
NerdWallet – Minimum payment estimators
Credit Karma – Compare cards and see rates before applying

That way, you can avoid surprises and pick the best fit for your budget.

Is It Worth Getting a Credit Card with Bad Credit?

If your credit score isn’t in great shape, it’s totally normal to wonder if getting a credit card is even a good idea. After tudo, a gente escuta tanto sobre juros altos, armadilhas escondidas e dívidas que saem do controle. But here’s the truth: a credit card can be a powerful tool — or a problem — depending on how you use it.

If your main goal is to rebuild your credit, keep your spending organized, or have a safer way to shop online, then yes — it can absolutely be worth it. But only if you’re ready to use it responsibly and treat it like a stepping stone toward better financial health.

You’re committed to paying on time
You don’t carry a balance every month
You’re using it as a stepping stone to better credit

If not, maybe go with a prepaid card or a credit-building app until you’re ready.

Having bad credit doesn’t mean you’re out of options. There are solid credit cards out there with low interest rates designed to help you get back on your feet.

Take your time, compare the terms, and don’t fall for flashy offers with hidden fees. Start slow, stay consistent, and your credit will bounce back before you know it.

Ready to start rebuilding your credit? Pick one of the cards from this list and take that first step today.