No matter how prepared you are, sometimes unexpected expenses and unplanned purchases happen -- bringing your credit down. In this case, a second-chance credit card, also known as a credit-building card, can help you get back on track. Even if you have a few flaws on your credit report, there’s a good chance you can get approved for a second-chance credit card since these cards often have more lenient approval requirements.
Although many second-chance credit cards are secured credit cards, which require a security deposit to fund your credit line, there are a few good options for those with lower credit that do not require a deposit.
These credit cards can help you work on your credit -- and a few even come with perks and rewards.
Here are our picks for best second-chance credit cards that can help your credit bounce back.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, incentivizes you to make on-time payments with the chance to earn a higher cash-back rate.
You can earn 1% on eligible purchases, and after you make 12 on-time monthly payments, you can get up to an additional 0.5% in cash back -- increasing your cash-back potential to up to 1.5%. You can also earn 2% – 10% cash back on select local small businesses and select merchants when you shop with the Petal app.
The Petal 2 Visa doesn’t charge annual, foreign transaction or late fees. If you don’t make your payment on time, however, you won’t earn the higher cash-back rate. You can typically get approved for this card with fair or average credit -- and Petal also may take your financial history into account rather than just looking at your credit score.
Read our full review of the Petal 2 “Cash Back, No Fees” Visa Credit Card.
- Intro Balance Transfer APR
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- Regular APR
- 18.24% – 32.24% (Variable)
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The Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, incentivizes you to make on-time payments with the chance to earn a higher cash-back rate.
You can earn 1% on eligible purchases, and after you make 12 on-time monthly payments, you can get up to an additional 0.5% in cash back -- increasing your cash-back potential to up to 1.5%. You can also earn 2% – 10% cash back on select local small businesses and select merchants when you shop with the Petal app.
The Petal 2 Visa doesn’t charge annual, foreign transaction or late fees. If you don’t make your payment on time, however, you won’t earn the higher cash-back rate. You can typically get approved for this card with fair or average credit -- and Petal also may take your financial history into account rather than just looking at your credit score.
Read our full review of the Petal 2 “Cash Back, No Fees” Visa Credit Card.
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- Intro Purchase APR
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- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
Mission Lane Visa® Credit Card
Compared to other cards on this list, you won’t earn any rewards with the Mission Lane Visa Card. But you do get access to free credit-building resources and are automatically considered for a higher credit line in as few as seven months. You can also see if you’re prequalified before applying, so you have a better idea of whether you’re likely to be approved.
The Mission Lane Visa has a high variable APR -- 26.99% to 29.99% -- so make sure you only charge what you can afford to pay back in full each month to avoid hefty interest charges. There’s also up to a $59 annual fee, up to a $35 late fee and a 3% foreign transaction fee.
- Intro Balance Transfer APR
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- Intro Purchase APR
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- Regular APR
- 26.99% – 29.99% (Variable)
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Compared to other cards on this list, you won’t earn any rewards with the Mission Lane Visa Card. But you do get access to free credit-building resources and are automatically considered for a higher credit line in as few as seven months. You can also see if you’re prequalified before applying, so you have a better idea of whether you’re likely to be approved.
The Mission Lane Visa has a high variable APR -- 26.99% to 29.99% -- so make sure you only charge what you can afford to pay back in full each month to avoid hefty interest charges. There’s also up to a $59 annual fee, up to a $35 late fee and a 3% foreign transaction fee.
- Intro Balance Transfer APR
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- Intro Purchase APR
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- Regular APR
- 26.99% – 29.99% (Variable)
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The Upgrade Cash Rewards Visa® is a no annual fee credit card that’s a good alternative to the popular Buy Now, Pay Later plans. This card is similar to a personal loan, offering a fixed payment plan to give you more flexibility and time to pay your balance. It also has the convenience of a credit card.
After making purchases with this card, you can either pay off your account in full or have your balance converted to a personal loan with a fixed interest rate. Depending on your creditworthiness, you’ll have 24, 36 or 60 months to repay your balance. Any additional purchases would create new installment plans -- but we don’t recommend carrying more than one loan balance at a time on this card, as it can make it harder to pay off.
You can also earn unlimited 1.5% cash back on your purchases each time when you pay off your balance. This feature is only lucrative when using the Upgrade Cash Rewards as a credit card and not as a loan. Otherwise, the interest could wipe out your cash-back earnings.
Read our full review of the Upgrade Cash Rewards Visa®.
- Intro Balance Transfer APR
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- Intro Purchase APR
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- Regular APR
- 14.99% – 29.99% APR
- Balance Transfer Fee
- Up to 5%
The Upgrade Cash Rewards Visa® is a no annual fee credit card that’s a good alternative to the popular Buy Now, Pay Later plans. This card is similar to a personal loan, offering a fixed payment plan to give you more flexibility and time to pay your balance. It also has the convenience of a credit card.
After making purchases with this card, you can either pay off your account in full or have your balance converted to a personal loan with a fixed interest rate. Depending on your creditworthiness, you’ll have 24, 36 or 60 months to repay your balance. Any additional purchases would create new installment plans -- but we don’t recommend carrying more than one loan balance at a time on this card, as it can make it harder to pay off.
You can also earn unlimited 1.5% cash back on your purchases each time when you pay off your balance. This feature is only lucrative when using the Upgrade Cash Rewards as a credit card and not as a loan. Otherwise, the interest could wipe out your cash-back earnings.
Read our full review of the Upgrade Cash Rewards Visa®.
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- Regular APR
- 14.99% – 29.99% APR
- Balance Transfer Fee
- Up to 5%
The Tomo Credit Card** doesn’t require a credit check, which may increase your chances of approval. But this card is a charge card, meaning you must pay off your entire balance each month, or your account will be frozen. The upside is there’s no APR to worry about.
You’ll earn 1% cash back on purchases with very few fees. It comes with other benefits too, including three months of DoorDash’s DashPass for free, plus $5 off your order each month. You’ll also get a $5 Lyft credit after taking three rides, and $5 off your Fandango purchase after spending $20 on movie tickets or a streaming service. Best of all? There’s no credit check or annual fee.
Read our full review of the Tomo Credit Card.
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- Regular APR
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The Tomo Credit Card** doesn’t require a credit check, which may increase your chances of approval. But this card is a charge card, meaning you must pay off your entire balance each month, or your account will be frozen. The upside is there’s no APR to worry about.
You’ll earn 1% cash back on purchases with very few fees. It comes with other benefits too, including three months of DoorDash’s DashPass for free, plus $5 off your order each month. You’ll also get a $5 Lyft credit after taking three rides, and $5 off your Fandango purchase after spending $20 on movie tickets or a streaming service. Best of all? There’s no credit check or annual fee.
Read our full review of the Tomo Credit Card.
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The Credit One Bank® Platinum Visa® for Rebuilding Credit** is a good pick if you have a lower credit score. This unsecured credit card has a $75 annual fee for the first year, which jumps to $99 a year after that. You’ll also get free access to your score to keep track of your progress toward better credit.
You can earn 1% cash back rewards on eligible gas and grocery purchases, and on mobile phone, internet, cable and satellite TV services. Keep in mind that the APR for this card is 29.74% variable, which is high. The best way to avoid APR is to always pay your bill in full each month.
Read our full review of the Credit One Bank® Platinum Visa® for Rebuilding Credit.
- Intro Balance Transfer APR
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- Intro Purchase APR
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- Regular APR
- 29.74% Variable
- Balance Transfer Fee
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The Credit One Bank® Platinum Visa® for Rebuilding Credit** is a good pick if you have a lower credit score. This unsecured credit card has a $75 annual fee for the first year, which jumps to $99 a year after that. You’ll also get free access to your score to keep track of your progress toward better credit.
You can earn 1% cash back rewards on eligible gas and grocery purchases, and on mobile phone, internet, cable and satellite TV services. Keep in mind that the APR for this card is 29.74% variable, which is high. The best way to avoid APR is to always pay your bill in full each month.
Read our full review of the Credit One Bank® Platinum Visa® for Rebuilding Credit.
- Intro Balance Transfer APR
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- Intro Purchase APR
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- Regular APR
- 29.74% Variable
- Balance Transfer Fee
- N/A
What is a second-chance credit card?
A second-chance credit card often has lower eligibility requirements than traditional credit cards, and is easier to qualify for if you have lower credit, bankruptcies or have faced financial hardship. These credit cards can be secured or unsecured and may come with credit-building tools, like access to your credit score or report.
These cards can also come with higher variable annual percentage rates and more fees. Some charges, like an annual fee or foreign transaction fee, may be unavoidable. But you can avoid APR by paying off your credit card balance on time and in full each month.
When you use the card responsibly, you should see a boost in your credit score over time. This can help you qualify for additional credit cards, better loan rates and more.
Who should get a second-chance credit card?
You might consider a second chance credit card if:
- You have bad or fair credit
- You have a history of late payments
- You have a bankruptcy
- You have several delinquent accounts on record
Second-chance credit cards are generally easier to qualify for and can help you rebuild your credit once approved. Although the best secured credit cards are the easiest to get approved for at any credit level, not all second-chance credit cards require a security deposit.
If you’re looking to repair your credit, you can use a second-chance credit card to rebuild your credit. After demonstrating responsible use -- paying your bill in full and on time -- the card issuer may offer you a higher credit limit or upgrade you to a higher-level credit card with rewards.
How to choose the best second-chance credit card
To get the best second chance credit card for your wallet, here are a few factors and benefits we recommend looking at before applying.
Eligibility
Before applying for any card:
1. Check the requirements and account terms.
2. Look out for the recommended credit score -- which can range between bad, fair, good and excellent.
3. If you’re looking for a second-chance credit card, look for one with a lower credit requirement, like one of the picks on our list.
You may need to meet additional requirements, like proof of income, to qualify.
APR
The APR, or annual percentage rate, is the rate at which your credit card balance accrues interest. Based on our research, some second-chance credit cards have higher variable APRs compared to other unsecured credit cards. That means if you don’t pay your bill in full, you’ll pay more interest on the remainder than you might with a higher-tier credit card. You can avoid paying interest altogether by only charging what you can afford to pay back in full each month.
Annual fee
Depending on the card issuer and credit card, you may pay an annual fee for the card. Sometimes you can pay annual fees monthly, while other cards require one payment per year. Some second-chance credit cards also have an introductory annual fee for the first year but charge a different fee for subsequent years.
Rewards
The number one goal of a second chance credit card is to focus on repairing your credit. But some cards have ongoing rewards, such as cash-back on groceries or gas. Once you’ve figured out how to best use the card, you may build a credit card strategy to maximize your rewards while using your card responsibly.
If you want a card with rewards, we recommend choosing a flat-rate cash-back card, such as the Petal 2 or Tomo Credit Card, which lets you earn 1% cash back on all eligible purchases without building a complex plan to earn rewards while building good credit habits.
How to apply for a second chance credit card
When you’re ready to apply for a second-chance credit card, you’ll need your personal information handy -- like your name, address, phone number, proof of income, Social Security number and any other data the card issuer requires.
You’ll usually be able to apply for the credit card online, and the card issuer will reach out if any additional information is needed to submit your application. Since some second-chance credit cards look at other areas of your financial situation for approval, and you may need to submit other documents, such as bank statements or pay stubs.
FAQs
Secured credit cards often require a security deposit that will serve as your line of credit. This deposit protects the credit card issuer if you cannot pay your bill.
Many credit card issuers also require a minimum security deposit for the secured card. You must pay the minimum to receive the card, and you may be able to add more money over time to increase your line of credit.
Most second-chance credit cards have lower credit score requirements. A second-chance credit card is a tool you can use to repair your credit, so the approval requirements are generally more lenient than traditional credit cards. Keep in mind that sometimes these cards may come with higher fees, interest rates and other limitations. But if you use the card to make small purchases and pay your balance in full each month, it can help improve your credit score over time.
You can review your credit score for free by requesting a copy of your credit report from each of the three main credit bureaus, once a year. You can also check your credit score through free, secure credit score sites. And some second-chance credit card issuers also have credit-building tools, including a feature to check your credit score.
*Upgrade Cash Rewards Visa: To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions.
**All information about the Credit One Bank Platinum Visa for Rebuilding Credit, and the Tomo Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
