Credit Cards to Rebuild

Secured credit cards are generally considered the best credit cards to rebuild credit after bankruptcy because they’re the easiest to qualify for after bankruptcy and they report to the credit bureaus just like traditional credit cards.

That said, the best credit cards in general have five important attributes:

1. No or low fees
2. Low APR
3. Rewards or perks
4. Credit reporting to all three bureaus
5. An upgrade path

Secured cards usually only check one of those boxes consistently. Here’s how they compare:

 After a bankruptcy, it can be difficult to qualify for a credit card that checks all those boxes: low fees, great rewards, and low APRs. That’s why secured cards play such an important role: They are accessible when others aren’t, and they create the positive history you need to move up the ladder. 

Another option for rebuilding your credit is to become an authorized user on someone else’s established credit card. When added to a trusted friend or family member’s account, their positive payment history can start appearing on your credit report. In short, you can “borrow” their positive payment history, giving your credit score a chance to recover without having to pay the security deposit and high fees associated with secured credit cards. 

Key takeaway: Secured cards aren’t perfect, but after bankruptcy they’re often the only credit cards you can qualify for, and they report to all three credit bureaus to help you rebuild. Authorized user accounts can also provide a helpful boost while you work toward qualifying for stronger unsecured cards.

It is generally better to apply for secured credit cards, even though they require a refundable deposit. That deposit lowers the bank’s risk and improves your chances of approval. Traditional, unsecured cards don’t require a deposit, but approval odds are lower after a major credit setback. 

Here’s how secured and unsecured credit cards compare:

Key takeaway: Secured cards tend to be the smarter starting point after bankruptcy because they’re easier to get and reliably report to all three credit bureaus. If you can qualify for an unsecured card with no annual fee and fair terms, that’s even better — but those offers are harder to access until your score improves.

No, not all secured credit cards report to all three credit bureaus. While most major issuers, like Capital One, Discover, and Citi, do report to Experian, Equifax, and TransUnion, some smaller or subprime credit card companies may report to only one or two.

Why does this matter? Because your credit score is calculated from the data in your credit reports, and lenders may pull from any of the three bureaus. If your card only reports to one bureau, you’re building history in a limited way, which means slower progress and gaps in your credit profile. Cards that report to all three bureaus give you the strongest foundation for rebuilding because every on-time payment is captured everywhere it counts.

Key takeaway: Always confirm that a secured card reports to all three credit bureaus before applying. It’s one of the most important features to look for in a credit card after bankruptcy.

The best no-annual-fee credit card for bad credit is usually a secured card, since approval is easier and it still helps you build credit. For people rebuilding, these cards can be a smart choice, but the right one depends on your situation. Look for options that balance accessibility with fair terms, moderate APRs, and minimal hidden costs.

Here are a few no-annual-fee cards to consider: 

These cards are worth reviewing if you want to rebuild without paying yearly fees. That said, be sure to watch for: 

• APR: While having no-annual-fee is helpful, some secured cards carry APRs of 25%–36%. That said, paying your balances in full each month will allow you to avoid interest charges.
• Other Fees: Skip cards with monthly maintenance, setup, or processing fees that eat into your budget.
• Reporting: Choose a card that reports to all three bureaus so every payment helps build your credit score across Experian, Equifax, and Transunion.
• Terms: Watch for upsells or terms that change after a promo period.

Key Takeaway: No-annual-fee credit cards can be a solid way to rebuild, but the real value lies in finding one with fair terms, consistent reporting, and room to grow. Cards like Bank of America Travel Rewards Secured, U.S. Bank Cash+ Visa Secured, and Chime’s Credit Builder card are worth considering if you want to avoid extra costs while strengthening your credit profile.

Credit card offers and rates change frequently, but as of August 2025, the Amazon Secured Credit Card (10% fixed APR) and the First Progress Platinum Prestige Mastercard® Secured (9.99% variable APR) currently offer some of the lowest interest rates available for people rebuilding credit, with the First Progress Platinum Select (18.24% APR) also standing out as below the industry average.

Secured Cards with Notably Low APRs

To provide context, as of August 2025, the average credit card APR is over 22%, and many secured cards fall in the 25%–30% range. That makes Amazon and First Progress’s sub-20% APRs especially valuable for those who may need to carry a balance.

If you pay your bill in full each month, APR matters less: You won’t pay interest on balances paid in full each month. But if cash flow is tight, a lower-rate secured card can significantly cut down on interest charges.

Key Takeaway: For anyone rebuilding credit who expects to carry a balance, the Amazon Secured Credit Card (10%) and the First Progress Platinum Prestige (9.99%) are rare low-APR options, with the First Progress Platinum Select (18.24%) also well below average.

Yes, both Capital One and Discover offer secured credit cards designed to help people rebuild credit. 

Capital One’s Platinum Secured Credit Card requires a refundable deposit that can be as low as $49, and it reports to all three credit bureaus. Discover’s Secured Credit Card also reports to all three bureaus, requires a deposit starting at $200, and even offers cash-back rewards on purchases, rare for a secured card. Both issuers review accounts after about six to twelve months, which means you may qualify for an upgrade to an unsecured card and get your deposit back.

No, prepaid cards do not help rebuild your credit score because they don’t report to the credit bureaus. A credit score measures borrowing behavior and debt, e.g., how you handle money you’ve borrowed, credit card balances, and loan payments. Since prepaid cards use your own money (not borrowed funds), they don’t factor into the scoring formula.

To improve your credit score, you need a product that reports payment history, balances, and credit utilization. That’s why secured credit cards, student cards, or credit-builder loans are much more effective tools for rebuilding credit.

If you’re starting from scratch with no credit history, the best options are secured credit cards and fintech credit-builder cards.

Secured credit cards are often the easiest to qualify for because they require a refundable security deposit, which becomes your credit limit. For example, if you put down $300, your limit is $300. Since the bank’s risk is reduced, approval odds are much higher. Most secured cards also report your payment history and credit use to all three credit bureaus, which is what helps build your score. Over time, some issuers (like Discover or Capital One) may even upgrade you to an unsecured card and refund your deposit.

Fintech credit-builder cards, such as the Chime Credit Builder Card, don’t require a credit check or security deposit. Instead, you load money onto the card and then use it like a debit card. The key difference is that Chime reports your payment activity to all three major credit bureaus. That means you can build a positive history without the risk of carrying a balance, paying interest, or making a deposit. 

Key Takeaway: If you have no credit history, a secured card from a major bank or a fintech card like Chime’s Credit Builder are the most accessible ways to start. Both report to the credit bureaus and give you the foundation you need to move up to higher-limit unsecured cards in the future.

Yes, you can often get approved for a credit card with a 500 credit score, but it will almost always be a secured card. Banks are hesitant to issue unsecured cards to someone with such a low score, especially if there’s a recent bankruptcy or missed payments. With a secured card, your deposit lowers the bank’s risk, and it still reports to the credit bureaus to help you rebuild. 

Once you show six to twelve months of consistent on-time payments, your options will expand.

Most companies that offer secured credit cards will approve your credit application, even if your score is in the 400 or 500s. This is because the deposit lowers the bank’s risk. Capital One, Discover, Chime, and many credit unions are popular choices because their secured cards often require relatively low deposits (or in Chime’s case, no traditional deposit at all) and come with fairer terms.

For traditional unsecured cards, approval depends much more on the specific card. Some entry-level unsecured cards will work with lower scores, but many “easy approval” offers come with hidden costs, like high annual fees, monthly maintenance fees, or APRs well over 30%. These products are rarely worth it, even if approval odds are higher.

Here’s a quick comparison of the approval odds requirements, and score ranges of various cards, as of August 2025:

Key takeaway: Most secured credit cards will approve your credit application, even if your score is very low, since the deposit lowers the bank’s risk. Cards like Chime and OpenSky are the least selective because they don’t require a credit check, while Capital One and First Progress are also accessible with fair terms. Discover and Bank of America are more selective but offer stronger rewards and upgrade paths, whereas unsecured subprime cards like Indigo, Milestone, and Credit One may approve applicants with bad credit but often carry high fees and APRs that make them less appealing long term.

There isn’t a strict minimum score to qualify for a credit card because each issuer has different requirements based on the card, and income is also part of the decision. Cards with better terms are generally reserved for applicants with higher credit scores.

For traditional unsecured credit cards, most issuers start approving applicants at around a 580–600 credit score. That’s considered the bottom of the “fair” range in FICO scoring. Below that, approvals are rare unless you’re applying for a secured card, where your deposit reduces the bank’s risk. Secured cards can approve applicants with scores in the 400s or 500s, making them the more realistic option if your score is very low.

Let’s take a look at the approval odds based on the type of credit card. 

Key takeaway: Traditional unsecured credit cards usually start approving around a 580–600 score, while secured cards can approve applicants with scores in the 400s or 500s. If your score is very low, a secured card is typically the most realistic path to begin rebuilding until you qualify for better unsecured options.

If you need instant access to credit with bad credit and no deposit, your main options are unsecured subprime cards like Indigo® or Milestone®, virtual cards from buy-now, pay-later lenders, or secured cards with virtual card access. Let’s look at the pros and cons. 

• Indigo® Platinum Mastercard and Milestone® Gold Mastercard are unsecured cards marketed to people with bad credit. They don’t require a deposit, and you’ll usually get an approval decision within minutes. However, you won’t get to use the card right away: The physical card typically arrives by mail in 7 to 10 business days. However, they come with high APRs (30%+) and annual fees ($75–$99), so they’re more of an emergency tool than a long-term solution.
• Some buy-now, pay-later (BNPL) companies (e.g., Affirm) offer installment loans at checkout and provide a virtual card you can use for purchases. While not credit cards in the traditional sense, BNPL virtual cards can give you immediate access to financing. Approval odds are often higher than for standard unsecured cards, and no deposit is required, but terms vary and interest rates can be high. Affirm also reports to Experian, so on-time payments can help your credit in some cases.
• Major issuers like Capital One sometimes provide a virtual card number immediately after approval, but these are usually secured cards (deposit required). Some fintech options, like Chime Credit Builder, can be set up quickly, but you must already have money in a linked account, so it’s not actually borrowed credit.

Key takeaway: The only credit cards you can typically use instantly with bad credit are secured cards from major issuers that offer virtual card numbers upon approval, such as some from Capital One. Unsecured subprime cards like Indigo® Platinum and Milestone® Gold may approve you quickly without a deposit, but you’ll need to wait seven to ten business days for the physical card to arrive. Another alternative is a buy now, pay later (BNPL) company that issues virtual cards for immediate purchases.

You should have three credit cards to rebuild your credit score. FICO scoring models reward people who can handle multiple revolving accounts, since it shows you can manage more than one line of credit responsibly.

With three cards, you also have the advantage of spreading out your spending, which makes it easier to keep your credit utilization below 30 percent, one of the biggest factors in your score.

One important detail: those cards need to be in good standing. If you’ve been through a financial meltdown like bankruptcy and had cards discharged, or if you have credit card accounts in collections, those won’t help you. In that case, you’ll want to open three new cards right away so they can start aging on your report. The sooner they’re opened, the sooner they begin working in your favor.

Yes, store credit cards can help rebuild credit if they report to the credit bureaus, but they come with some drawbacks. Store cards usually only work at one retailer. Why limit yourself to a single store when you can get a card that works everywhere? On top of that, they tend to carry very high APRs, which makes them expensive if you ever carry a balance.

Another thing to know is that some “store cards” are structured more like installment accounts than revolving credit cards. That’s not necessarily a bad thing (you do need at least one installment account to round out your credit mix), but it can be a little tricky if you thought you were opening a regular credit card.

Key takeaway: While retail store credit cards can help rebuild your credit score, most people are better off avoiding them and opening secured or unsecured bank-issued credit cards instead. Those accounts give you more flexibility, count as true revolving credit, and are usually stronger tools for rebuilding.

Yes, applying for multiple cards at once can temporarily hurt your score because of hard inquiries. A hard inquiry happens when a lender checks your credit report to decide whether to approve you. Each one usually costs a few points on your score, and multiple inquiries in a short period can make you look riskier to lenders. 

That said, the impact of hard inquiries fades quickly. They usually drop off your credit report in two years, and your score usually rebounds in six months. Some people suggest spacing out applications, but if you’ve been through a financial setback like bankruptcy, opening the three cards you need right away (on the same day, if possible) is usually smarter. This is because the age of your accounts is a major factor in your credit score, so getting your accounts open and letting them age helps you in the long run. 

The only time to pause is if you have a major purchase coming up within the next six months and your score is borderline. In that case, timing becomes part of the strategy. Sometimes even then, adding a card can help if it lowers your utilization rate.

Key takeaway: Hard inquiries sting for a moment, but aging accounts build your score for years.

The fastest way to raise your credit score with a credit card is to make every payment on time and keep your balances low, ideally below 10 to 30% of your limit. This strategy tackles the two biggest factors in your FICO score:

• Payment history (35% of your score): Every on-time payment builds trust with lenders and shows that you can be counted on to repay what you borrow.
• Credit utilization (30% of your score): Keeping balances low compared to your limit shows you are not relying too heavily on credit to get by.

A credit score really reflects the answer to one key question: How likely is this borrower to be 30+ days late on a bill in the next two years? If you keep balances low, you show that you have enough money to manage life without leaning on credit cards. And when you couple this with on-time payments, you give the credit bureaus evidence that you will probably continue to pay your bills on time. Together, those habits paint the picture of someone who is financially stable and a safe bet for lenders.

That said, be sure to use your credit card, and then pay it off at the end of the month. This keeps your credit report active and shows that you are currently in good standing with your lenders. 

Key takeaway: Pay on time, keep balances under 30% (ideally closer to 10%), and you’ll strengthen the two factors that make up 65% of your FICO score.

Some secured and entry-level unsecured cards, such as Discover and Capital One,  review your account every six months for a credit line increase. Smaller subprime issuers often never raise limits, so going with major banks is usually the faster path.

Here’s a quick comparison:

That said, you don’t always have to wait for the bank to reach out . You can also request a limit increase yourself. When you do, the issuer will review your payment history, income, and utilization. Some issuers run a hard inquiry, which can ding your score a few points, while others only use a soft inquiry that doesn’t affect your score. Either way, a higher limit helps in the long run because it lowers your utilization ratio, one of the biggest factors in FICO scoring.

Key takeaway: Major issuers like Capital One and Discover are your best bet for early credit line increases. Requesting an increase can trigger an inquiry, but the long-term benefit of a higher limit, and lower utilization, usually outweighs the short-term hit.

You can usually upgrade from a secured card to an unsecured card within six to twelve months if you make every payment on time and keep your balances low. Major issuers like Discover, Capital One, and Citi often review secured accounts automatically. When you “graduate,” your security deposit is refunded, and you move to a stronger product with better terms and a higher limit.

But not all secured cards offer this upgrade path. Some smaller banks and subprime issuers lock you into a secured card without the option to transition. If you have one of those, here’s what to do:

1. Keep your current secured card open to preserve the account age and payment history.
2. Apply for a new unsecured card from a major issuer after you’ve built a track record of on-time payments.
3. Shift your spending gradually to the new unsecured card, while keeping the secured card active with a small recurring charge (like a subscription) to show continued responsible use.
4. Close the secured card only after your new account has aged and your overall credit profile is strong enough (ideally 720+). At that point, your score can recover from the dip caused by closing an account and lowering your average account age.

Keep in mind that you will not get your refundable deposit back until the account has been closed. 

Key takeaway: With the right issuer, you can move from secured to unsecured in as little as six months. If your card doesn’t offer that path, keep it open for history, then add a new unsecured card with a better long-term future.

The exact speed at which your score will increase depends on a few factors, but you’ll generally see a small improvement within a month or two, with longer, more significant gains happening over the course of a year or two. 

Estimated Timeline for Credit Score Improvement

Here are five factors that can influence how much (and how quickly) your score increases: 

1. Current Credit Score: If your score is on the lower end, you might see more immediate improvements as you build a positive payment history. For those with higher scores, progress may be slower because there’s less room for growth.
2. Payment History: Your payment history makes up 35% of your FICO score. Paying your secured credit card on time is important, but if you aren’t paying your other bills on time, your credit score likely will not increase. .
3. Credit Utilization: Keep your credit utilization ratio (the amount of credit you use vs. your limit) under 30%. The lower your utilization, the faster your score can improve.
4. Length of Credit History: If your secured card is new, it might take a bit longer for your score to rise. FICO takes the length of your credit history into account, but your on-time payments will still help over time.
5. Credit Mix and Other Factors: Having a mix of different types of credit (e.g., cards and loans) can positively affect your score. Applying for new credit or other factors will also play a role in how quickly your score improves.

Key takeaway: While you’ll likely see some improvements in the short term, your score will generally rise steadily over the long term as you continue to pay on time and manage your credit wisely.

In six months, a responsibly used credit card can raise your score by 20–50 points or more, depending on your profile. People with very low scores often see the largest jumps because they’re starting with the most room to improve. Key habits like keeping utilization low, making every payment on time, and avoiding new negative marks can create steady upward momentum.

When it comes to rebuilding your credit, the best option depends on your financial goals and current credit situation. Credit cards, credit rebuilder accounts, and personal loans each have distinct advantages for credit rebuilding.

Key takeaway: The best option for rebuilding credit depends on your financial habits. Credit cards offer flexibility and help improve credit utilization if used responsibly. Credit builder loans provide a structured way to rebuild credit with fixed payments but lack the flexibility of a credit card. Personal loans are ideal for those who need a larger sum, especially for debt consolidation, but require careful management to avoid financial strain. Each choice has unique benefits, so it’s important to pick the one that aligns with your goals.