What credit cards will accept you with bad credit
Banks and card issuers do offer credit cards to people with credit scores below 580, though the terms are different from what someone with good credit would receive. These cards come with higher interest rates, lower credit limits, and annual fees — sometimes all three. The tradeoff is that they report your payment history to the credit bureaus, which means on-time payments actually improve your score over time.
The cards that will consider you fall into two main types: secured cards, which require a cash deposit, and unsecured cards for bad credit, which do not. Secured cards are easier to get approved for because the deposit protects the issuer. Unsecured cards aimed at bad credit are harder to get approved for but do not tie up your money.
Your score, income, and recent payment history all matter. A score of 500 with no missed payments in the last year is stronger than a score of 550 with a recent late payment. Issuers also look at whether you have any open accounts right now and how much debt you already carry.
Key Takeaways
- Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and most issuers will convert you to an unsecured card after 12 to 18 months of on-time payments.
- Unsecured cards for bad credit exist but carry higher interest rates (often 25% to 36% APR) and annual fees of $39 to $99, so read the full terms before you explore.
- Every on-time payment reports to all three credit bureaus and raises your score, but one missed payment can drop it significantly and trigger a higher penalty rate.
- explore for multiple cards in a short time can lower your score further, so research which card fits your situation before you submit an process.
How secured credit cards work
A secured card requires you to deposit money into a savings account held by the card issuer. That deposit becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other credit card — make purchases, receive a bill, and pay it back each month.
The deposit stays in the account untouched. It is not deducted from your purchases. The issuer holds it as insurance in case you stop paying your bill. After you make on-time payments for 12 to 18 months, most issuers will review your account and convert it to a regular unsecured card, returning your deposit.
Secured cards still charge interest and sometimes annual fees. A card with a $500 deposit might have a 24% APR and a $49 annual fee. If you carry a balance, you pay interest on it just like any other card. The advantage is that you will almost certainly be approved, and the deposit gives you a reason to use the card responsibly — you know the issuer is watching your payments closely.
Unsecured cards for bad credit and what they cost
An unsecured card for bad credit does not require a deposit. You are approved based on your credit history, income, and other factors. The issuer takes on more risk, so the card charges more: interest rates typically range from 25% to 36% APR, and annual fees run $39 to $99.
Some cards charge both an annual fee and a processing fee when you open the account. A few charge monthly fees on top of that. Read the full terms before you submit anything — the total cost can be steep. A card with a 30% APR, a $95 annual fee, and a $25 processing fee costs you money even if you pay your balance in full every month.
The benefit is that you do not tie up a deposit, and approval is faster. If you can find an unsecured card you may have access to for, you get to use your money for other things. But the higher rates mean carrying a balance is expensive. These cards work best if you can pay off what you charge each month.
Comparing secured and unsecured cards side by side
| Feature | Secured Card | Unsecured Bad Credit Card |
|---|---|---|
| Deposit required | Yes, $200–$2,500 | No |
| Approval odds | Very high | Moderate to high |
| APR range | 18%–28% | 25%–36% |
| Annual fee | $0–$95 | $39–$99 |
| Conversion to unsecured | Usually after 12–18 months | N/A |
| Best for | Rebuilding credit from scratch | Building credit without a deposit |
What to look for when comparing cards
Start by checking whether the card reports to all three credit bureaus — Equifax, Experian, and TransUnion. If it only reports to one or two, your payment history will not reach all the lenders who might consider you later. Most cards do report to all three, but confirm it in the terms.
Next, look at the APR and fees. A card with a 22% APR and no annual fee is better than one with a 26% APR and a $95 annual fee, even though the second one sounds worse. Calculate the actual cost: if you carry a $1,000 balance for a year, the first card costs you $220 in interest; the second costs you $260 plus $95, or $355 total.
Check whether the card offers a path to conversion. Secured cards that convert to unsecured cards after good payment history are worth more than ones that never convert — you eventually get your deposit back and move to a better card. Some issuers also offer to lower your APR or waive your annual fee after you prove yourself, so read what they promise.
Finally, look at the credit limit. A higher limit gives you more room to use the card without maxing it out. Credit utilization — the percentage of your limit you use — affects your score. Using 30% of your limit is better than using 80%, even if the dollar amount is the same.
How to use a bad credit card to rebuild your score
Opening a card is only the first step. Your score improves when you use it the right way. Make a small purchase each month — a gas fill-up, a coffee, a subscription — and pay the full balance when the bill arrives. This shows the issuer you can borrow and repay reliably.
Never miss a payment, even by a day. A single late payment can drop your score 100 points or more and trigger a penalty APR, often 29% or higher. Set up automatic payments for at least the minimum if you are worried you will forget. Better yet, pay the full balance automatically so you never carry interest.
Keep your balance low. If your limit is $500, try not to carry more than $150 at any time. This keeps your utilization below 30%, which credit scoring models reward. Do not close the card once your score improves — an open account with a long payment history helps your score more than a closed one.
After 12 to 18 months of on-time payments, contact the issuer and ask about converting to an unsecured card or moving to a better product. Many issuers do this automatically, but some wait for you to ask. Once you convert, your deposit returns to you.
Red flags to avoid
Do not explore for multiple cards in a short time. Each process triggers a hard inquiry on your credit report, which lowers your score slightly. Multiple inquiries in a few weeks signal to lenders that you are desperate for credit, which makes them less likely to approve you. Space applications out by at least a few months.
Avoid cards that promise may provide approval or claim to work with any credit score. Legitimate issuers always review your process and can decline you. Cards that may provide approval often have hidden fees or extremely high rates that make them not worth using.
Do not carry a balance longer than you have to. The interest charges add up fast. A $1,000 balance at 30% APR costs you $300 a year in interest alone. If you cannot pay off what you charge, the card is not helping you rebuild — it is making your debt worse.
Skip cards with monthly fees or processing fees beyond the annual fee. These add up and drain your account even when you are not using the card. Stick to cards with a clear annual fee and nothing else.
Frequently Asked Questions
Will explore for a bad credit card hurt my score?
Yes, but only temporarily. The process triggers a hard inquiry, which lowers your score by a few points for a few months. However, once you open the card and make on-time payments, your score will rise faster than the inquiry knocked it down. The long-term benefit outweighs the short-term dip.
Can I get a credit limit increase after a few months?
Some issuers offer automatic reviews after six months of on-time payments. Others require you to ask. Contact your issuer and request a review if you have been paying on time. They may increase your limit without another hard inquiry, or they may pull your credit again. Either way, a higher limit helps your utilization ratio.
What happens if I miss a payment?
A single missed payment reports to the credit bureaus and can drop your score 50 to 100 points. The issuer may also charge a late fee ($25 to $40) and trigger a penalty APR, often 29% or higher. Pay as soon as you realize you missed it — paying within 30 days limits the damage. After 30 days, the impact gets worse.
Should I choose a secured or unsecured card?
If your score is very low (below 550) or you have recent missed payments, a secured card is easier to get approved for. If your score is higher (550 to 650) and your recent payment history is clean, an unsecured card may work. You can also explore for a secured card first, rebuild for a year, then move to an unsecured card.
How long does it take to rebuild my credit with a card?
Most people see a 50 to 100 point increase within 6 to 12 months of on-time payments, depending on what damaged their score in the first place. A recent missed payment takes longer to recover from than an old one. Consistent on-time payments compound over time, so the longer you keep the card open and use it responsibly, the more your score improves.