Top Bad Credit Cards

You might have heard about bad credit card products in the past, but that doesn’t mean they aren’t out there. There are plenty of credit cards that are specifically designed to help you build your credit and have better credit while improving your spending behavior. Let’s look at the top 10 bad credit card products so you can choose the ones that are right for you.

What are the top bad credit cards?

The following bad credit cards are what you should consider. Each of them is designed to have better spending behaviors, improve your credit score, help you build your credit score, and take away from a bad credit score. Let’s take a closer look at each of these bad credit cards to help you make the best choice possible for your situation.

Amex Gold

The Amex Gold is an American Express credit card that is geared toward users who have less than $20,000 of debt. You can pay off that debt without paying any interest and it works just like a traditional credit card.

You can take an Amex Gold Card, deposit money directly from your bank account, and then immediately withdraw it and apply it to your balance. Amex Gold also has a $500 bonus after spending $1,500 in the first 3 months. You will be able to earn the $500 bonus just by paying your balance off and the $1,500 bonus can be used for anything on the Amex shopping portal (like travel purchases or in-app purchases).

The bottom line:

This card is geared toward users with bad credit. It won’t help you build credit, but it will help improve your credit if you have a ton of credit card debt.

Pros:

• Low-interest rate
• $500 bonus after 3 months
• Built-in money-back guarantee
• Provides unlimited purchases
• Limits customers to spend $1,500 in the first 3 months
• Free checked bags on award flights

Cons:

• Doesn’t help build your credit score
• It’s a credit card
• You won’t be able to build your credit
• Impulse shopping
• It’s a credit card

The Amex Gold comes with an annual fee of $145. You can choose to transfer your old card, but then you will have to pay an additional $9.95 monthly fee.

Discover it® Cashback Match®

Discover it Cashback Match® is the ultimate no-fee credit card. It is a prepaid card, meaning that you don’t have to make purchases with it to get the cashback benefits. Instead, Discover just keeps track of how much you spend on the card and then matches those expenses to your existing credit card.

The Discover it Cashback Match® Card also comes with a 6% cash back credit line and a 0% APR on purchases for 21 months. While that offer isn’t as good as Amex’s 0% APR card, it is still one of the best cash-back credit card offers.

The Bottom line:

Discover it Cashback Match is a simple no-fee prepaid credit card that has the potential to save you hundreds of dollars a year.

Pros:

• Low-interest rate
• 6% cashback credit line
• 0% APR for 21 months
• No annual fee
• Cashback match rewards for purchases

Cons:

• Limited purchase categories
• No cash back option
• A credit card needs 2FA
• It’s a prepaid card
• Doesn’t build credit
• No savings towards flights or shopping
• No travel insurance
• No connection to Google Pay
• A limited number of locations

BankAmericard Cash Rewards

The BankAmericard Cash Rewards credit card is pretty similar to the Amex Gold, except it is geared towards users with more than $10,000 of credit card debt.

The BankAmericard Cash Rewards credit card also offers a 0% interest rate on balance transfers and purchases for the first 60 days. After that, the APR goes back up to 16.99%. While that rate is pretty good, it’s not quite as good as the Amex Gold’s 0% APR.

The BankAmericard Cash Rewards credit card also has a cash back rate of 5% plus an additional 1% for every $1,000 spent on the card. The card also comes with a free annual membership for Uber, Lyft, or Postmates.

The Bottom line:

This is another card geared towards users with higher credit card debt. That said, it has a great 0% APR rate, a much lower APR on purchases, and rewards that are typically higher than Amex’s.

Pros:

• 5% cash back rate
• 0% interest on balance transfers
• $75 bonus for paying off your balance every month
• Prepaid card

Cons:

• Low credit limit
• Balance transfer APR higher than Amex’s
• Only rewards for spending
• No 0% interest for 6 months on purchases
• Doesn’t provide many cards to merchant incentives
• No travel insurance
• No connection to Google Pay
• Limited rewards categories
• No savings towards flights or shopping
• A limited number of locations

Citi® Prestige® Card

Citi Prestige® is another excellent no-annual fee credit card. The card also offers the 6% cash back on groceries, up to $6,000 of cash back. That’s $230 in cash back each year.

Additionally, the card comes with 0% intro APR for 21 months. The card also offers travel insurance, emergency assistance, an annual $200 airline fee credit, and a $300 statement credit for 24 months.

The Bottom Line:

The Citi Prestige Card offers tons of cashback and perks for users with higher credit card debt.

Pros:

• No annual fee
• Cashback for grocery spending up to $6,000
• $200 airline fee credit
• $300 statement credit for 24 months
• 0% intro APR for 21 months
• Travel insurance
• Emergency assistance
• Other perks
• No annual fee

Cons:

• A cash back rate of up to 6% is low
• Low credit limit
• A balance transfer fee of 3% on transfer fees and interest for the first 30 days
• No foreign transaction fee
• A limited number of locations
• No credit check
• No 0% APR for 60 days
• No travel insurance
• Limited rewards categories
• No savings towards flights or shopping
• No bonus for paying off your balance every month
• No balance transfer fee
• No $0 premium on your new purchase for a year

Starwood Preferred Guest® Premier Credit Card

Another great cash-back credit card is the Starwood Preferred Guest® Premier Credit Card from American Express.

This credit card comes with a 2% cash back bonus on purchases, and 5% on dining, hotels, travel, and miscellaneous.

Additionally, this card comes with 0% intro APR for 18 months on purchases, 6% for dining, and hotels, and 7.99% for travel and miscellaneous.

The card also comes with a $150 statement credit for the first three months, and a $150 statement credit for the first year.

The Bottom Line:

The Starwood Preferred Guest® Premier Credit Card offers a ton of rewards for users with higher credit card debt. Additionally, it offers a generous cash-back rate.

Cons:

• Pretty high annual fee
• A balance transfer fee of 3.75% on transfer fees and interest for the first 30 days
• No annual fee
• No foreign transaction fee
• A limited number of locations
• No savings towards flights or shopping
• No statement credit for the first three months
• No cash for the next six months
• No statement credit for the first year

Chase Freedom Unlimited™ Credit Card

One of the most unique cash-back credit cards is the Chase Freedom Unlimited. This credit card comes with an introductory 0% intro APR for 12 months on purchases, 7.99% for travel, and miscellaneous.

The card also comes with a 10% rebate on up to $300 of eligible purchases when you pay your bill monthly, as well as other perks such as mobile site/app access, 10% cash back on purchases at more than 15,000 stores, including grocery, gas, and pharmacies, and no annual fee.

The Bottom Line:

Chase Freedom Unlimited offers a lot of benefits, for users with higher credit card debt. The card comes with a 0% intro APR for 12 months on purchases, 7.99% for travel, and miscellaneous.

Cons:

• No balance transfer fee
• No annual fee
• 0% intro APR for only 12 months
• A balance transfer fee of 3.99% on transfer fees and interest for the first 30 days

Advantages of Bad Credit Cards

The bad credit cards you are considering? Some of the best advantages of bad credit cards have been discussed here before, and I will cover many of them again below.

Income Offsets

In addition to limiting your total debt to the card’s limit, many bad credit cards will offer income offsets and no-risk borrowing. So, if you make $50,000 per year and your total debt are $50,000 and you make a $5,000 purchase, your credit card may credit you with $1,000. You get a small credit limit, but you pay a small interest rate and the card is at no risk of not being paid in full.

Exceptional Cash Back

Bad credit cards will often offer excellent cash back rewards programs and other perks. While the higher interest rates charged by most credit cards mean that you are likely to be losing money in the long run, you may be making less over time than you would by using a high-interest credit card instead of a low-interest credit card.

Additional Services

If you have good credit, you may be able to upgrade to more luxurious standard offerings on a bad credit card. If you are willing to incur a few points of interest, you may be able to get a lower-rate card that has a higher annual fee. Some credit cards have an annual fee, and many charge a $100 to $200 penalty fee if you don’t make a minimum payment within a year.

Other cards offer additional benefits such as insurance, which may be suitable for people who spend more money on accident protection than on credit cards. Some cards also offer protection for rental cars or even concert tickets. These are not the most popular categories for these cards, but if you need these types of insurance products, they may be worth considering.

Purchase Protection

Many good credit cards also offer an additional benefit called a purchase protection plan. In some cases, you can get a refund of any fraudulent charges made against your card.

A credit card issued by Capital One may provide you with this benefit, though to date there are no card issuers who offer this protection. In some cases, you may be able to call the credit card company to dispute a fraudulent charge without a claim form.

Online Shopping Protection

Most good credit cards will also allow you to purchase from various retailers online, but some credit cards may offer additional protection. In most cases, you will be able to place an order for a particular item without the card ever being billed for the order. The credit card company will then place a hold on your credit card until the purchase is cleared, at which point they will cancel the charge.

Business-Friendly Credit Cards

Another advantage to being a business owner is that some credit card issuers may offer some form of a corporate card. If your business expenses are less than the annual fee, you may be able to get a corporate card that offers some advantages over your card.

Conclusion

Credit cards generally have a negative connotation, but a credit card is a great way to manage your finances. The right credit card can help you establish credit and avoid an endless cycle of debt. Instead of paying interest, you can pay it off over time or pay it off as soon as possible, which may lead to lower interest rates. Some of these cards also may have a rewards program, some may offer protection for goods or services that you may purchase with them, and some may even offer protection for your rental car. It is important to understand that credit cards come with many risks. Bad Credit Cards are beneficial too.