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Best Rewards Credit Cards for Bad Credit in 2024

Hey there! If you’re trying to rebuild your credit and want a credit card that actually rewards you for your efforts, you’re in the right place. I’m Sarah Williams, AFC, and I’ve worked with countless folks who thought their credit score was holding them back from all the perks and rewards credit cards offer. Spoiler alert: It doesn’t have to be that way.

In 2024, there are some surprisingly good rewards credit cards designed specifically for people with less-than-perfect credit. I’m going to walk you through the best ones, share some personal insights, and even help you compare your options in a handy table. Let’s dive in!

Why Consider Rewards Credit Cards for Bad Credit?

First off, I know what you’re thinking: “Why would a bad credit card offer rewards at all?” Great question! Many folks assume that if they have bad credit, they’re stuck with cards that charge outrageous fees and offer zero perks. While that was true years ago, the credit card market has evolved.

Issuers now realize that people rebuilding credit want to be rewarded for responsible use. So, they’ve created cards that help you build credit *and* earn points or cash back. It’s a win-win. These cards often have higher interest rates or smaller reward rates compared to premium cards for perfect credit, but they can still add up over time — especially when you’re mindful about paying your balance on time.

What to Look for in a Rewards Card With Bad Credit

When I guide clients on picking the best card, these are the must-haves I stress:

Reports to all three credit bureaus: This helps you rebuild your credit score faster.
Reasonable fees and APR: Avoid cards with crazy annual fees or sky-high interest rates.
Meaningful rewards: Look for cards that offer cash back, points, or even perks like statement credits.
Easy approval criteria: Especially if your score is below 600, focus on cards designed specifically for bad credit.

Keep in mind, some cards require a security deposit (secured cards), which lowers risk for the issuer and increases your chances of approval. And guess what? Many secured cards now offer rewards too.

Top Rewards Credit Cards for Bad Credit in 2024

Based on my experience and thorough research, here are some of the best options you might want to consider.

Credit Card	Type	Rewards	Annual Fee	APR	Security Deposit
Discover it® Secured	Secured	2% cash back at gas stations & restaurants, 1% on other purchases	$0	23.74% variable	$200 minimum
Capital One QuicksilverOne Cash Rewards	Unsecured	1.5% unlimited cash back on every purchase	$39	26.99% variable	None
Petal® 2 “Cash Back, No Fees” Visa® Credit Card	Unsecured	1%-1.5% cash back on purchases	$0	19.99%–29.99% variable	None
OpenSky® Secured Visa® Credit Card	Secured	No rewards, but easy approval and credit building	$35	17.39% variable	$200 minimum

Discover it® Secured — The Gold Standard for Rewards on Bad Credit

Hands down, the Discover it® Secured card is a fan favorite of mine for anyone starting fresh. It offers 2% cash back at gas stations and restaurants, which is pretty generous compared to other secured cards that usually don’t offer rewards at all. Plus, it matches all the cash back you earn in your first year — yes, you basically double your rewards! Discover also reports to all three credit bureaus, so it’s a great tool for improving your credit score.

The only catch is you do need to put down a security deposit — minimum $200 — which also becomes your credit limit. But that deposit is refundable when you graduate to an unsecured card, so it’s not a sunk cost. And the zero annual fee means you’re not paying extra just to hold the card.

Capital One QuicksilverOne Cash Rewards — A Solid Unsecured Option

If you don’t want to tie up funds in a security deposit, the Capital One QuicksilverOne is a decent unsecured card for bad credit. It offers a flat 1.5% cash back on every purchase — simple and straightforward. However, it does have a $39 annual fee, which you’ll want to weigh against your rewards potential.

One nice perk here is access to a higher credit line after making your first 5 monthly payments on time, which can be a big boost for your credit score. Just be mindful of the higher APR if you plan to carry a balance (which I don’t recommend!).

Petal® 2 Visa — No Fees and Variable Cash Back

I love what the Petal® 2 Card brings to the table. No annual fees, no foreign transaction fees, and cash back ranging from 1% to 1.5% based on your payment habits. They use alternative data like your bank account history to approve applicants, making it very friendly for those with limited or bad credit.

It’s unsecured, so no deposit required, and it reports to all three major bureaus. The APR can be high if you don’t pay on time, so again, using it responsibly is key.

OpenSky® Secured Visa® — Easy Approval, No Credit Check

If your credit is really rough, the OpenSky® Secured Visa® is an option worth considering. While it doesn’t offer rewards, it’s one of the easiest secured cards to get approved for because they don’t check your credit report. The $35 annual fee is a downside compared to other secured cards, but for some, simply getting approved and building credit is the top priority.

This card is great if you want a no-frills tool to rebuild your credit history, which can later help you qualify for rewards cards like those mentioned above.

How to Maximize Rewards While Rebuilding Credit

From my experience working with clients, the secret isn’t just picking the “best” card but using it wisely:

Pay your balance in full every month. This avoids interest charges that can easily outweigh any rewards you earn.
Use your card for regular expenses you would have paid for anyway. Groceries, gas, and streaming services are common examples.
Keep your credit utilization low. That means don’t max out your credit limit. Aim to use less than 30% of your available credit.
Monitor your credit score. I recommend free tools like Credit Karma or Credit Sesame to track your progress.

Remember, the goal with these cards is twofold: rebuild your credit and earn some rewards along the way. By the time your credit score improves, you can qualify for premium cards with even better perks.

Applying for a Bad Credit Rewards Card — Tips From an Expert

Applying for credit cards with bad credit can sometimes feel like a shot in the dark, but here’s the approach I follow:

Check your credit score first. You can get this for free from many online sources.
Apply only to cards you’re likely to qualify for. Applying for multiple cards and getting rejected can further ding your score.
Consider a secured card if your score is below 600. It’s often easier to get approved and is a stepping stone to unsecured cards.
Read the fine print. Look for fees, APR, and how rewards are earned and redeemed.

If you’re ready to start rebuilding your credit and earning rewards, I highly recommend checking out the Discover it® Secured card — it’s truly a standout option. And if you want an unsecured card with rewards, the Capital One QuicksilverOne is worth a look.

Frequently Asked Questions

1. Can I get a rewards credit card with bad credit?

Yes! While options are more limited than for people with good credit, several cards offer cash back or points designed for those rebuilding or with low credit scores. Secured cards like the Discover it® Secured are a great place to start.

2. Are secured credit cards worth it?

Absolutely. They require a refundable security deposit but help you build credit by reporting your payment activity to credit bureaus. Many now offer rewards, so you don’t miss out on benefits while rebuilding.

3. How long does it take to improve my credit using these cards?

Improvement depends on your habits. Making on-time payments and keeping utilization low can start boosting your score in as little as 3-6 months, but substantial changes usually take longer.

4. Can I upgrade a secured card to an unsecured one?

In many cases, yes. Cards like Discover it® Secured allow you to graduate to an unsecured card after demonstrating responsible use, and your security deposit is refunded.

5. Will applying for these cards hurt my credit?

Applying causes a hard inquiry, which may temporarily lower your score by a few points. That said, being approved and managing the card responsibly has a much bigger positive impact over time[1][2].

Wrapping It Up

There’s no denying rebuilding credit isn’t a sprint — it’s a marathon. But with the right rewards credit card, you can make the journey a little sweeter by earning cash back or points for everyday spending. My top recommendation for 2024 continues to be the Discover it® Secured card. Its rewards, no annual fee, and credit-building benefits make it a standout.

Ready to get started? Apply for the Discover it® Secured card today and start earning rewards while building your credit! Or, if you prefer an unsecured card, check out the Capital One QuicksilverOne Cash Rewards card for straightforward cashback rewards.

Remember, no matter which card you choose, responsible use is the key to unlocking better credit and better rewards down the road.

References

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