Best Credit Cards for Bad Credit 2020

Bad financial decisions or simply not being able to keep with up debt can hurt all of our credit scores. Rebuilding your credit score isn’t something that can be done overnight. It will take time and you’ll perhaps have to make sacrifices here and there. To understand how you can rebuild your credit, you first need to know what determines your credit score.

There are five factors that is used when figuring out what your FICO credit score is. Most banks and lenders will take a quick look at your FICO Score and available credit reports to decide whether they should lend you a loan or issue a credit card.

How FICO Score is Calculated

Payment History (35%)

Your overall payment history made to your lenders. It includes how long overdue payments are, total amount past due, bankruptcy or judgments. Basically it states how responsible you are with your payments. It makes up 35% of your FICO Score which is the largest determination point by far.

Amounts Owed (30%)

The total amounts owed individually. It also includes all of your accounts with their current balances, the proportion of credit line and loan amounts used. Unlike payment history, it just shows how much money you owe right now and states your income to debt ratio.

Best Credit Cards for Bad Credit 2020

Length of Credit History (15%)

Includes since when you first became credit active and shows the time since your accounts have been active.

New Credit (10%)

This is a section of your FICO Score that lenders will likely examine to see if you’ve been rebuilding your credit score. It shows the re-establishment of positive credit history after poor decisions made on your credit. It also shows the time since newly opened accounts and proportion to total accounts, and time since recent credit inquiries.

Types of Credit Used (10%)

States the various types of accounts you’ve opened like installment of loans, mortgages, or credit card accounts or retail accounts. It gives enough information to lenders for what you’re looking for.

How to rebuild credit score?

The FICO score starts from 300 and goes all the way up to 850. A bad credit score is one that is below 670. However, if your credit score is between 580 and 669 which is considered fair, there are many available credit cards that you can get easily.

A FICO score between 300 and 579, on the other hand, is considered poor so you might have some hard time acquiring a new credit card, even if you want to rebuild your credit. The credit cards that are listed below should be easily accessible by you if your credit score is below 600.

Credit Cards to Rebuild Credit in 2020

Discover it® Secured

Best Credit Cards for Bad Credit 2020

Getting an unsecured card with bad credit is extremely hard if not impossible. Discover it® Secured credit card is the best overall in our list with the easy application process. You can be eligible for a credit card by just simply putting a deposit amount that you’d like.


  • Discover will automatically review your credit card account on a monthly basis and see if you’re eligible for the deposit return. You can get your deposit back in eight months if you make your payments on time. Since you’ll be rebuilding your credit, making your payments responsibly must be the main focus.
  • 2% cashback at restaurants and gas stations up to $1,000 in combined purchases each quarter, then 1%.
  • Unlimited cash back on all other purchases
  • At the end of your first year, Discover will match the cash back you earned throughout the year.


  • Discover isn’t widely accepted like Visa, Mastercard, or American Express.
  • It has low credit limits so making purchases on high-cost items or many expenses is not an option.
  • 24.99 APR which is considerably high.

OpenSky® Secured Visa®

Best Credit Cards for Bad Credit 2020

If your credit score is beyond bad and can’t even get a secured card because of it, OpenSky® Secured Visa® credit card seems to be the only option. It makes no credit background check so you can put the deposit amount you like and get your credit card. It is a simple credit card that is aimed to rebuild credit score.


  • OpenSky® Secured Visa® Credit Card doesn’t offer any cash back or points. It also doesn’t have a welcome bonus. If you don’t qualify for any other credit card and aiming to rebuild your credit, this card can be used as a gate for better credit cards in the future.


  • No rewards whatsoever.
  • $35 Annual Fee

Capital One® Journey® Student

Best Credit Cards for Bad Credit 2020

If your credit score is just below 500 or around that range and you’re currently attending a college or university, Capital One’s Journey can be an option. Don’t expect a high credit line with this credit card. It is a secured credit card so you aren’t required to put in a deposit.


  • 1% cash back on all purchases
  • Upon making your payments on time, the cash back increases to 1.25%.
  • No annual fee
  • $0 fraud liability
  • After making your payments on time, you can get access to a higher credit line.


  • Limited credit line
  • Requires credit score check
  • High late fee (up to $39)
  • Relatively high 26.74% APR

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