1.Discover it Secured Credit Card
Discover
- 2%Cash back at gas stations and restaurants (up to $1,000 combined quarterly)
- 1%Cash back on all other purchases
Unlimited Cashback Match at the end of the first year.
Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus unlimited 1% cash back on all other purchases.
26.49% Variable APR
The Discover it Secured Credit Card stands out as the top choice because it not only helps build credit but also offers a unique Cashback Match feature that doubles your cash back earned in the first year, making it an excellent option for those looking to establish a positive credit history while earning rewards.
Pros:
- No annual fee
- Cashback Match in the first year
Cons:
- High variable APR
- Requires a security deposit
2.Capital One Platinum Secured Credit Card
Capital One
- No rewards breakdown available
N/A
No rewards offered.
28.99% Variable APR
What sets the Capital One Platinum Secured Credit Card apart is its straightforward approach to building credit without the distraction of rewards. It focuses on helping users establish a credit history with responsible use, making it a solid choice for those looking to improve their credit score.
Pros:
- No annual fee
- Potential for credit limit increases
Cons:
- High variable APR
- No rewards program
- 5%Cash back on travel booked through Capital One
- 1.5%Cash back on all other purchases
N/A
Earn 1.5% cash back on every purchase, plus 5% on travel booked through Capital One.
28.99% Variable APR
The standout feature here is the ability to earn cash back on every purchase, making the Capital One Quicksilver Secured Cash Rewards Credit Card an attractive option for those looking to build credit while also enjoying rewards. Its straightforward cash back structure is ideal for everyday spending.
Pros:
- No annual fee
- Cash back on every purchase
Cons:
- High variable APR
- Requires a security deposit
- 1.5%Cash back on rotating categories with qualifying direct deposits
N/A
Earn 1.5% cash back on rotating categories with qualifying direct deposits.
This card shines for its unique approach to credit building, allowing users to spend only what they deposit, thus avoiding interest charges altogether. The Chime Credit Builder Secured Visa Card is an excellent choice for those who want to build credit responsibly while earning cash back.
Pros:
- No annual fee
- No interest charges
Cons:
- Limited cash back categories
- Requires direct deposit for rewards
- No rewards breakdown available
Make your first purchase within 30 days of account activation and receive a $20 Statement Credit.
No rewards offered.
27.49% Variable APR
The Self Secured Visa Credit Card is designed primarily for those looking to build credit without the burden of a credit check. Its focus on reporting to all three major bureaus makes it a reliable option for users aiming to improve their credit score over time.
Pros:
- No credit check required
- Reports to all three bureaus
Cons:
- Annual fee after the first year
- No rewards program
6.Credit One Bank Secured Card
Credit One Bank
- 1%Cash back on eligible gas, groceries, and select services
N/A
Earn 1% cash back on eligible purchases.
29.99% Variable APR
The Credit One Bank Secured Card is a solid option for those looking to build credit while also earning cash back on everyday purchases. Its unique feature of offering rewards on select categories makes it stand out among secured cards.
Pros:
- No annual fee
- Earn cash back on eligible purchases
Cons:
- High variable APR
- Requires a security deposit
7.Bank of America Customized Cash Rewards Secured Credit Card
Bank of America
- 6%Cash back in the category of your choice (for the first year)
- 2%Cash back at grocery stores and wholesale clubs
- 1%Cash back on all other purchases
Earn a $200 online cash rewards bonus offer after spending $1,000 in the first 90 days.
Earn 3% cash back in a chosen category, 2% at grocery stores, and 1% on everything else.
27.49% Variable APR
The Bank of America Customized Cash Rewards Secured Credit Card is an excellent choice for those looking to build credit while also enjoying generous cash back rewards. Its ability to earn 3% in a chosen category makes it a standout option for everyday spending.
Pros:
- No annual fee
- High cash back rates in chosen categories
Cons:
- High variable APR
- Requires a security deposit
8.U.S. Bank Altitude Go Visa Secured Card
U.S. Bank
- 4%Points on dining, takeout, and restaurant delivery
- 2%Points on groceries, gas, and streaming
- 1%Points on all other purchases
N/A
Earn 4x points on dining/takeout, 2x on groceries, and 1x on everything else.
28.49% Variable APR
The U.S. Bank Altitude Go Visa Secured Card shines for its robust rewards structure, offering 4x points on dining and takeout, making it an ideal choice for food lovers looking to build credit while earning valuable rewards.
Pros:
- No annual fee
- Strong rewards on dining and groceries
Cons:
- High variable APR
- Requires a security deposit
9.Mission Lane Visa Credit Card
Mission Lane
- 1.5%Cash back on all purchases
N/A
Earn 1.5% cash back on all purchases.
19.99%-33.99% Variable APR
The Mission Lane Visa Credit Card is designed for those looking to build credit without the burden of a security deposit. Its straightforward cash back rewards program makes it a practical choice for users aiming to improve their credit score while earning rewards.
Pros:
- No impact to credit score if declined
- Automatic consideration for higher credit limits
Cons:
- High variable APR
- Annual fee may apply
10.Tilt Engage Credit Card
Tilt
- 10%Cash back at select merchants
N/A
Earn 1% to 10% cash back at select merchants.
28.24%-33.49% Variable APR
The Tilt Engage Credit Card is tailored for those looking to rebuild their credit while enjoying the potential for significant cash back rewards. Its unique approach to using spending data for approval makes it a compelling option for users with limited credit history.
Pros:
- Potential for high cash back rewards
- Focus on users rebuilding credit
Cons:
- High annual fee
- High variable APR
Final Words
As you navigate your options for the best credit cards for bad credit this January, remember that the right card can help you rebuild your credit while offering valuable rewards. Take time to compare features, fees, and benefits to ensure you make an informed decision that aligns with your financial goals.
Frequently Asked Questions
The welcome bonus for the Discover it Secured Credit Card is Unlimited Cashback Match at the end of the first year.
With the Discover it Secured Credit Card, you can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus unlimited 1% cash back on all other purchases.
No, the Capital One Platinum Secured Credit Card does not offer any rewards. It is designed primarily for credit building without any cashback or points.
The Capital One Quicksilver Secured Cash Rewards Credit Card allows you to earn 1.5% cash back on every purchase, plus 5% on travel booked through Capital One.
When selecting a credit card for bad credit, consider factors such as annual fees, rewards programs, and the card's APR. Look for cards that offer rewards and no annual fee to maximize benefits while rebuilding your credit.
Many secured credit cards, including top options like the Discover it Secured Credit Card and Capital One Platinum Secured Credit Card, have no annual fees. However, it’s essential to review each card’s terms to avoid unexpected costs.
The application process for a secured credit card generally involves filling out an online form, providing personal information, and making a security deposit. This deposit acts as collateral and typically determines your credit limit.
