You can get a credit card with bad credit, but you will pay more and have lower limits

A credit card with bad credit is possible. You won't may have access to for the cards advertised on mainstream websites, but secured cards, store cards, and cards designed for rebuilding credit do accept people with scores below 600. The tradeoff is real: you'll pay higher interest rates (often 20% to 30%), annual fees (sometimes $25 to $95), and start with a credit limit under $1,000. But if you use the card responsibly — spending small amounts and paying in full each month — your score will improve within 6 to 12 months, and you can move to better cards later.

The card itself is not the goal. The goal is to build a record of on-time payments that lenders can see. Every payment you make on time gets reported to the three credit bureaus (Equifax, Experian, and TransUnion), and that history is what raises your score over time. A card you never use does nothing. A card you use and pay off every month does the heavy lifting.

Key Takeaways

  • Secured cards require you to deposit cash as collateral, but they report to all three credit bureaus and are the fastest way to rebuild if your score is very low.
  • Unsecured cards designed for bad credit charge higher interest and fees but don't require a deposit, so you can start building history when ready if you're approved.
  • Store cards and gas cards are often easier to get than bank cards and can be a first step if you've been turned down elsewhere.
  • Your credit limit and interest rate will improve once your score reaches 650 to 700, usually within 12 to 18 months of on-time payments.
  • Paying your full balance every month matters more than the card itself — even one missed payment can erase months of progress.

Secured cards: the most reliable path when your score is very low

A secured credit card requires you to put down a cash deposit, usually $200 to $2,500, which becomes your credit limit. You then use the card like any other card, and the deposit sits in a bank account untouched. After 6 to 18 months of on-time payments, the bank converts it to a regular unsecured card, returns your deposit, and you keep the account open with a higher limit.

Secured cards are the most straightforward option if your score is below 550 or you've had recent late payments or collections. Banks know the deposit covers their risk, so approval is nearly automatic if you have the cash. Capital One Secured Mastercard, Discover Secured Card, and U.S. Bank Secured Visa are widely available. Each reports to all three credit bureaus, so your payment history builds faster than with store cards alone.

The catch is the deposit. If you don't have $200 to $500 sitting aside, a secured card isn't an option right now. But if you do, it's the fastest way to prove you can handle credit responsibly. The interest rate on a secured card is still high (around 20% to 24%), but you're paying it on your own money, which makes the math clearer.

Unsecured bad-credit cards: no deposit required, but higher fees

An unsecured card for bad credit works like a regular credit card — no deposit — but charges you for the risk. Interest rates run 24% to 36%, and annual fees range from $35 to $95. Cards like the Chime Credit Builder Card, OpenSky Secured Visa (which is unsecured despite the name), and Milestone Mastercard fall into this category.

The advantage is speed: you don't need to save up a deposit first. If you're approved, you can start using the card when ready. The disadvantage is cost. A $500 balance at 29% interest costs you roughly $145 per year in interest alone, plus the annual fee. That's why paying your full balance every month is not optional — it's the entire point of the card.

Unsecured cards are worth considering if you have bad credit but no savings, or if you've been rejected for a secured card (which is rare). But be honest about whether you can pay the full balance monthly. If you can't, the interest will outpace any credit-building benefit.

Store cards and gas cards: easier approval, narrower use

Retail stores and gas stations often have their own credit cards with lower approval standards than banks. Target, Walmart, Amazon, Shell, and Chevron all offer cards that may approve people with scores in the 550 to 650 range. These cards are easier to get because they benefit the store — you're more likely to spend there — so they take on more risk.

The downside is that store cards only report to the credit bureaus when you carry a balance or miss a payment. If you use the card and pay it off every month, some store cards don't report at all, which means your on-time payments don't help your score. Check the card's terms before you explore. Gas cards are slightly better because most report on-time payments, but the limit is usually low ($300 to $500) and the interest rate is high (20% to 28%).

Store and gas cards work best as a second card, not a first one. Get a secured card or unsecured bad-credit card that reports every month, then add a store card to diversify the types of credit you're using. That mix — installment credit, revolving credit, and retail credit — helps your score more than one card alone.

What happens during the process process

When you explore for a bad-credit card, the bank will run a hard inquiry on your credit report. This temporarily lowers your score by a few points (usually 5 to 10) and stays on your report for 12 months. Multiple applications in a short time compound the damage, so explore to one or two cards, wait to hear back, and only explore again if you're rejected.

The bank will also verify your income and identity. Have your Social Security number, a recent pay stub or tax return, and a current address ready. If you're self-employed or between jobs, bring bank statements showing deposits instead. Some banks will approve you based on income alone, even if your credit score is very low.

Approval usually takes 1 to 5 business days. If you're approved, the card arrives in 7 to 10 business days. If you're rejected, ask why — the bank must tell you under the Fair Credit Reporting Act. Common reasons are too many recent inquiries, too much existing debt, or a recent collection account. If you were rejected, wait 3 to 6 months before explore again, and focus on paying down existing balances in the meantime.

Using the card to actually rebuild your credit

Getting the card is the first step. Using it correctly is the second, and it's where most people stumble. Here's what works: spend a small amount each month (10% to 30% of your credit limit), then pay the full balance before the due date. If your limit is $500, spend $50 to $150 and pay it off completely. Do this every month without exception.

This approach does two things. First, it shows the credit bureaus that you can handle credit responsibly — you're using it, but not overextending. Second, you pay zero interest because you're not carrying a balance. The card costs you nothing except the annual fee (if there is one), and that fee is worth it for the credit-building benefit.

Avoid these mistakes: don't max out the card, don't miss a payment, and don't close the card once your score improves. A maxed-out card signals financial stress to lenders. A missed payment erases months of progress and stays on your report for seven years. Closing the card removes your oldest account and lowers your average account age, both of which hurt your score. Keep the card open and active, even after you graduate to better cards.

When your score improves enough to switch cards

After 12 to 18 months of on-time payments, your score should reach 650 to 700, depending on how much damage you started with. At that point, you become may be able to access for mainstream cards with lower interest rates (15% to 20%), no annual fees, and higher limits. Cards like the Capital One Quicksilver, Chase Freedom Flex, or Discover It become realistic options.

When you're ready to switch, explore for the better card but keep the old one open. The old card's payment history stays on your report and continues to help your score. Close it only if the annual fee is high and you're not using it. Most people benefit from keeping two or three cards open — it lowers your overall credit utilization and shows you can manage multiple accounts.

If you started with a secured card, the bank will automatically convert it to an unsecured card once your score reaches their threshold (usually 650 to 700). You'll get your deposit back, and the card will function like any other card. This is the natural endpoint of the secured card strategy.

Frequently Asked Questions

Will getting a bad-credit card hurt my score?

Yes, temporarily. The process triggers a hard inquiry that lowers your score by 5 to 10 points. But that dip fades after 12 months, and the on-time payments you make afterward raise your score much faster than the inquiry lowered it. The net effect after one year is almost always positive.

What's the difference between a secured card and a prepaid card?

A secured card is a credit card backed by your deposit — you borrow money and pay it back, and the bank reports your payments to the credit bureaus. A prepaid card is not a credit card at all; you load money onto it and spend what you loaded. Prepaid cards don't build credit because there's no borrowing and no reporting. Only use a secured credit card if you want to rebuild your score.

Can I get a bad-credit card if I have no credit history instead of bad credit?

Yes, and it's actually easier. No credit history is less risky to lenders than bad credit because there's no evidence of missed payments. You may may have access to for a student card or a basic unsecured card designed for people building credit for the first time. A secured card still works, but you might not need one.

What if I can't pay the full balance one month?

Pay as much as you can, but understand that you'll owe interest on the remaining balance at a high rate (20% to 30%). More importantly, the payment will still be reported as on-time if you pay at least the minimum by the due date. But carrying a balance defeats the purpose — you're paying interest to rebuild credit that you could rebuild for free by paying in full. If you can't pay in full, you're spending beyond your means and the card isn't helping you.

How many bad-credit cards should I get at once?

One. Get one card, use it responsibly for 6 to 12 months, and then add a second if you want to diversify. Multiple applications in a short time lower your score and signal financial desperation to lenders. One card used well is more powerful than three cards used carelessly.