Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Our rather long list of subprime credit cards proves that you have many potential shopping partners despite your past financial challenges. Some of these cards may be unfamiliar to the average consumer, but we’ve also included offerings from major league players such as Citibank and Capital One.
These cards build credit when you use them responsibly. Paying your bills on time may help you move up to prime credit cards within a year. This article discusses how (and why) to do that. With a bit of work and patience, you’ll soon be reading our articles about cards for good credit.
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List of Unsecured Cards From Subprime Issuers
Unsecured subprime cards offer a certain give and take. They give you access to a credit account without requiring a deposit. They take sizable fees for the privilege due to the heightened risk subprime cardowners pose of defaulting on their credit card debt.
If your subprime credit score is 500 or higher, you have a pretty good chance of qualifying for these unsecured cards.
Continental Finance Company (CFC)
The Continental Finance Company sponsors several subprime credit cards in association with the issuers Celtic Bank and Bank of Missouri. The company is one of America’s leading marketers and servicers of credit cards for consumers with less-than-perfect credit. CFC has serviced more than 2.6 million cards for fair, limited, and poor credit since its founding in 2005.
CFC cards charge average to high interest rates, and some waive a signup fee, although their annual fees are relatively high.
- Up to $1,000 Initial Credit Limit
- See if you Pre-Qualify with No Impact to your Credit Score
- Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Up to $1,000 Initial Credit Limit
- See if you Pre-Qualify with No Impact to your Credit Score
- Less than perfect credit? We understand. The Reflex Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- $400 Initial Credit Limit
- Less than perfect credit? We understand. The FIT Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- If approved, you must pay a $95 fee to open your account. Please see the terms and conditions for when you apply.
As is usual for subprime unsecured credit cards, these don’t bill the monthly maintenance fee for the first 12 months, and CFC cards provide a 25-day interest-free grace period.
Concora Credit Inc.
Concora Credit Inc. sponsors credit cards for subprime consumers through a policy it calls second-look financing. The company has two decades of experience and services 200,000 new cardholders monthly.
Celtic Bank and Bank of Missouri issue Concora Credit credit cards, which feature a 25-day grace period and a low foreign transaction fee.
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don’t Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
- Get the credit limit you deserve—$700 guaranteed if approved
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Get the credit you deserve, even with less-than-perfect history.
- Trusted by more than a million customers with reporting to all three major credit bureaus so you get credit for all of your hard work.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Don’t Have Perfect Credit? No Problem!
- No security deposit, just purchasing power.
- A guaranteed $700 credit limit to help get your financial goals on track, if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- No security deposit, and a path to better credit.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- An unsecured card great for everyday purchases
Concora Credit credit cards payments are reported to each major credit bureau. Its cards offer multiple agreements with different (potentially high) annual fees and APRs. The best way to ensure knowledge of all potential fees is to review each cards’ official rates and fees terms.
Bank of Missouri (BoM)
The Bank of Missouri offers various personal and business financial products, including subprime credit cards. Some of their cards carry the bank’s name and logo, but the cards listed below do not.
Some cards offer premium designs for a small fee, and one, the Fortiva® Cash Back Rewards Mastercard, lets you earn cash back on your eligible purchases while building credit with responsible use.
- Earn Cash Back Rewards* – 3% on Eligible Gas, Groceries, and Utilities, and 1% on All Other Eligible Purchases
- Use Anywhere Mastercard is Accepted
- No Security Deposit
- $0 fraud liability**
- Free access to your Credit Score†
*See Program Terms for important information about the cash back rewards program.
**Fraud liability subject to Mastercard rules.
† Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
- Double the Rewards: Earn Up To 10% Cash Back on Purchases at select merchants & 1% Back on Payments!^^
- An initial credit limit Up To $500! (See terms*)
- Checking account required.
- Free credit monitoring powered by TransUnion®
- Fast and easy application process.
- All credit types welcome to apply.
- *See Rates, Fees, Costs & Limitations for complete offer details
- ^^1% Cash Back is earned on payments to your Credit Card. Up To 10% Cash Back is earned on qualifying purchases at select participating merchants. Offer percentages vary by merchant and are subject to change. See Total Card Visa Rewards Programs Terms & Conditions for details
- Earn Up To 10% Cash Back on everyday shopping with your First Access Card – Plus, another 1% back on payments!^^
- An initial credit limit Up To $500! (See terms*)
- Rebuild your credit and get rewarded with First Access.¹
- Applying only takes a few minutes, and we will provide a credit response in 60 seconds or less.
- *See Rates, Fees, Costs & Limitations for complete offer details
- ¹Account holders who pay their bill on time every month and keep their balance low relative to their credit line, may build or rebuilt their credit.
- ^^1% Cash Back is earned on payments to your Credit Card. Up To 10% Cash Back is earned on qualifying purchases at select participating merchants. Offer percentages vary by merchant and are subject to change. See First Access Rewards Programs Terms & Conditions for details
These subprime BoM cards reduce their annual fees after the first year. They provide the minimum grace period, 21 days, and report your payments to each major credit bureau.
List of Secured Cards From Subprime Issuers
Don’t let their deposit requirements deter you from applying for these secured subprime cards. For many, paying a refundable deposit makes more sense than shelling out hundreds for unsecured cards that impose setup, annual, and monthly maintenance fees.
Secured credit cards cost less than their unsecured cousins and are easier to get, especially if your subprime credit score is 500 or lower. While secured cards may charge annual fees, the charge is usually much lower than those on unsecured cards. Moreover, they help you build credit, something no prepaid card can do.
Pinnacle Bank
Pinnacle Bank issues a trio of Mastercards under the First Progress label. These secured cards require no minimum credit score for approval. Your deposit will be equal to the credit limit you receive.
The only differences among the three cards are the annual fees and APRs.
- Now offering Up To 10% Cash Back at select merchants with First Progress! Plus, 1% back when you make payments!^^
- A $200 refundable deposit is your first step toward better credit!
- Apply with no impact to your credit!2
- Build your credit history across 3 major credit reporting agencies: Equifax, Experian and TransUnion.¹
- All credit types welcome to apply!
- ¹Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
- 2We may pull a soft inquiry of your credit. Soft inquiries do not impact your credit score.
- ^^The 10% cash back rate is available only at a limited number of participating merchants. Offer percentages vary by merchant and are subject to change. See First Progress Rewards Program Terms & Conditions for details.
- *See Important Disclosures for complete offer details
First Progress Platinum Elite Mastercard® Secured Credit Card
This card is currently not available.
- Earn Up To 10% Cash Back on everyday shopping with your First Progress Card, plus another 1% back on payments!^^
- Apply with no impact to your credit!2
- The first step to rebuilding your credit starts with just $200!¹
- Choose the First Progress Select Card for a lower annual fee!
- All credit types welcome to apply!
- Build your credit history across 3 major credit reporting agencies: Equifax, Experian and TransUnion.¹
- ¹Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
- 2We may pull a soft inquiry of your credit. Soft inquiries do not impact your credit score.
- ^^The 10% cash back rate is available only at a limited number of participating merchants. Offer percentages vary by merchant and are subject to change. See First Progress Rewards Program Terms & Conditions for details.
- *See Important Disclosures for complete offer details
You want to choose the card that will cost you the least each year. For example, if you plan to pay your entire balance every month, choose First Progress Platinum Elite Mastercard® Secured Credit Card because it has the lowest annual fee.
Capital Bank NA
Not to be confused with Capital One Bank, Capital Bank issues the opensky® Secured Visa® Credit Card to consumers with subprime credit. This secured Visa credit card does not check applicant credit and accepts deposits as low as $200.
- Earn up to 10% cash back on everyday purchases
- No credit check required – 89% approval rate with zero credit risk to apply!
- Boost your credit score fast—2 out of 3 opensky® cardholders see an average increase of 47 points after 6 months
- Track your progress with free access to your FICO® score in our mobile app
- Build your credit history with reporting to all three major credit bureaus: Experian, Equifax, and TransUnion
- Seamless payments—add your card to Apple Pay, Google Pay, and Samsung Pay
- Start with just $200—secure your credit line with a refundable deposit
- Fast and easy application—apply in minutes with our mobile-first experience
- Flexible payment options—pick a due date that works for you
- More time to fund—spread your security deposit over 60 days with layaway
- Join 2 million+ cardholders who have used opensky® to build better credit!
The card charges the same, low APR for purchases and cash advances, and the annual fee is $35. This card is good for newbies and those with a low credit score.
Cards For Bad Credit From Mainstream Issuers
If you are a brand-name type of person, your bad credit need not stop you from owning a credit card from a well-known issuer. Some people feel a little embarrassed brandishing a no-name credit card, thinking it screams “credit problems” to the public.
We don’t necessarily agree, but if you fall into that camp, these cards will keep your bad credit on the down low. While all these cards are secured, you’d never know by looking at them. They are especially suited to folks with no or limited credit history.
Capital One
Capital One Bank shows its commitment to consumers with less than perfect credit by offering two different secured credit cards. Although the bank isn’t that old, its memorable television advertising has made it a household name. It provides a full range of cards for consumers of every credit stripe.
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you’re approved in seconds
- Put down a refundable $200 security deposit to get at least a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Top rated mobile app
- No annual or hidden fees. See if you’re approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get at least a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One’s mobile app
- Top rated mobile app
Its secured cards do not charge an annual or foreign transaction fee. Both cards provide $0 fraud liability and offer upgrades to cardowners who pay on time.
Check out the Capital One Quicksilver Secured Cash Rewards Credit Card if you want to earn cash back from a rewards card. The APRs on these cards are not the best, but the grace period for avoiding interest is a generous 25 days.
Citibank
Citibank traces its origins back 200 years yet remains one of the most technologically advanced banks in the world. Its credit cards favor value over flash, which is undoubtedly true for the Citi® Secured Mastercard®.
Citi® Secured Mastercard®
This card is currently not available.
Additional Disclosure: The information related to Citi® Secured Mastercard® has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.
The card charges no annual fee, and its APRs (for purchases, cash advances, and balance transfer transactions) are average. The grace period is 23 days, and you don’t want to miss a payment — the card has a steep penalty APR in addition to its late fee.
What Is Subprime Credit?
Someone with subprime credit cannot access the best, or prime, interest rates for loans and credit cards. More than a third of the country has subprime credit.
The Consumer Financial Protection Bureau identifies five credit score categories in prime terms:
- Deep subprime (credit scores below 580)
- Subprime (credit scores of 580-619)
- Near-prime (credit scores of 620-659)
- Prime (credit scores of 660-719)
- Super-prime (credit scores of 720 or above)
These card levels do not correspond precisely to the more common definitions that apply to FICO and VantageScore credit scores:
It may surprise consumers with fair credit that they have near-prime or subprime credit. But the credit card companies understand these distinctions quite well and pitch some of their subprime cards to fair credit consumers. Very poor FICO scores correspond to deep subprime credit.
Without getting into a numbers game, it’s safe to assume that you want your FICO score to exceed 700. The reviewed cards demonstrate that credit becomes harder and more expensive to get below that level.
Several unsecured cards impose APRs above 30%, and at least one charges the maximum, 36%.
Secured subprime cards charge less interest, typically in the 25% range, although the best secured credit cards have APRs below 20%. If you plan to finance credit card purchases by stretching payments over multiple months, it’s worth considering one of the secured cards with an APR below 20%.
What Is an Unsecured Credit Card?
When your credit card is unsecured, only your signature on the credit agreement backs your promise to pay on time.
The issuers of unsecured cards do not count on collateral to offset losses from cardmembers who default on their accounts. That’s far less of a problem when customers have good credit, but subprime credit card companies must take steps to protect themselves by issuing unsecured cards that generally:
- Charge high interest rates
- Impose steep and numerous fees
- Offer modest or no rewards on purchases
- Do not provide introductory promotions such as signup bonuses and 0% APRs
- Offer only essential benefits, such as fraud protection
You could pay close to $200 in upfront fees to get a subprime unsecured card with a high APR. That’s the time to consider secured cards instead.
What Is a Secured Credit Card?
A secured credit card may be your best credit card option when your credit is below prime. You must post a cash deposit to collateralize these cards against default, but that money is refundable, whereas fees aren’t. Since secured cards cost less and are easier to obtain, they may be the wisest choice for subprime consumers.
The amount you deposit usually equals your card’s credit limit, although the Capital One Platinum Secured Credit Card may require a lower deposit for a slightly higher credit limit. The minimum deposit is generally $200. Some cards do not allow larger initial deposits, but others do.
All the secured cards allow you to increase your credit limit with additional deposits after a set waiting period. You may be able to increase your credit line to $2,500 or more this way.
Virtually all secured cards can be upgraded to unsecured cards after you make timely payments for a set period of time. In that case, the card company will refund your deposit. Alternatively, a secured card may offer to increase your credit limit without an additional deposit.
Secured cards never charge signup or monthly maintenance fees. Any annual charges they impose are low, and their APRs undercut those of unsecured cards.
A secured rewards card lets you earn cash back on eligible purchases. They may also provide valuable benefits, such as cellphone insurance or rental car coverage.
Can I Be Denied a Secured Credit Card?
You have a pretty good chance of qualifying for a secured credit card, but it’s not guaranteed. Here are three tips to increase the odds in your favor:
- Prequalify for the card: You can prequalify for most secured and unsecured credit cards without damaging your credit score since the process doesn’t require a hard pull of your credit. Bear in mind that prequalification does not guarantee final approval.
- Apply for a no-credit-check card: The Secured Sable ONE Credit Card and opensky® Secured Visa® Credit Card don’t pull an applicant’s credit. These cards offer applicants the best odds of approval.
- Recruit a cosigner: Using a cosigner with good credit increases the likelihood that a credit card issuer will approve your application. But if you have a cosigner, you’d be better off applying for a high-quality unsecured card and avoiding a security deposit.
You should receive an Adverse Action Notice if a credit card issuer declines your application. The notice reveals information the credit card issuer used to make its determination.
You can use the notice to help you improve your chances of being accepted the next time you apply for a card. For example, suppose you learn that you have negative items on your credit report and feel the information is incorrect. In that case, you can attempt to remove it on your own or with the assistance of a credit repair company.
Can I Get A Subprime Card Without a Credit Check?
If you have no, limited, or poor credit, you may find it challenging to get the credit card you want. We know of at least two secured credit cards that do not perform credit checks. Other secured cards may be willing to approve your application if your score is very poor.
Your security deposit removes much of the risk secured card issuers assume by approving subprime and deep-subprime applicants. If you miss a secured card payment, the issuer will use your deposit for the minimum amount and report your late payment to the bureaus, which can greatly hurt your credit score. It may also charge you a late payment penalty, typically around $40.
Repeated missed payments may cause the issuer to close your account and return the remainder of your deposit after deducting the money you owe. Expect substantial damage to your credit score if you default on a credit card.
As previously mentioned, most issuers will prequalify you for a credit card without checking your credit. Hard credit checks can lower your credit score by a few points and remain on your credit reports for two years.
By prequalifying for a credit card, you learn whether you should risk a damaging hard credit check by applying for the card.
How Does Bad Credit Affect Credit Card APRs and Fees?
Unsecured cards for subprime credit have high interest rates and fees, including charges you won’t encounter on better-quality cards.
Nuisance fees include an upfront signup charge that may exceed $100 and maintenance fees, usually $6.25/month, waived for the first year. Of course, subprime unsecured cards also impose standard credit card charges such as annual fees, fees for foreign transactions, and late payment fees.
They have relatively high APRs and may charge an even higher penalty APR if you miss a payment. You can reduce your credit card costs over time when you build credit.
How Can I Rebuild Credit With a Subprime Credit Card?
Subprime credit cards usually report your payments to all three credit bureaus. The bureaus record the information and publish it in credit reports. Credit score models then use it to recalculate your credit score.
Your score will slowly increase when you pay your bills on time but will quickly drop if you are late by 30 days or more.
Paying on time is the most critical requirement for rebuilding credit. FICO attributes 35% of your score to this factor.
Another 30% of your score is based on the amount of money you owe to your credit cards. Your credit utilization ratio is the credit you currently use divided by your credit limit. Ratios above 30% hurt your credit, so you can improve your credit by paying down your credit card debt.
Less significant factors for rebuilding credit include keeping old credit accounts open, refraining from applying for new credit, and broadening the mix of your credit accounts.
As explained earlier, it also helps to remove derogatory inaccuracies from your credit reports.
Subprime Credit Doesn’t Have to Last Forever
CardRates.com’s list of subprime credit cards helps you in two ways:
- It reveals the costs and benefits of the cards that best serve a subprime borrower.
- It can help you apply for a credit card through our offer-box links.
Using your credit card responsibly allows you to join the ranks of consumers with prime or super-prime credit. That’s a worthy goal because it will save money and improve your lifestyle.
The money you save comes from lower interest rates and fees. And your lifestyle improves when you can purchase items without paying for them upfront.
The bottom line: Whatever your previous mistakes, your credit score is in your own hands. Subprime credit cards can help you build better credit and enjoy its accompanying benefits.
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Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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