What cards actually approve people with bad credit
Cards that approve people with bad credit scores exist, but they work differently from standard cards. Most require a security deposit — you put money in a savings account, and that becomes your credit limit. Others charge higher interest rates and annual fees to offset the risk to the lender. A few skip the deposit but come with restrictions like lower limits or mandatory credit monitoring fees.
The cards most likely to approve you are secured credit cards from banks and credit unions you already do business with, or cards specifically designed for credit rebuilding like the Capital One Secured Mastercard or the OpenSky Secured Visa. Some unsecured cards marketed to people rebuilding credit — like the Credit One Bank Visa or the Milestone Mastercard — will also approve lower scores, though they charge annual fees and higher rates.
Approval depends partly on your score, but also on recent payment history, how much debt you already carry, and whether you have a bank account with the lender. A score in the 500s is not a barrier to approval on secured cards; a score in the 600s opens more unsecured options. The key is matching the card type to your actual situation.
Key Takeaways
- Secured credit cards require you to deposit money upfront, which becomes your spending limit, and are the easiest type to get approved for with bad credit.
- Unsecured cards for bad credit exist but charge annual fees (often $39 to $99) and interest rates above 25%, making them more expensive than secured cards.
- Your approval odds improve if you already have a checking or savings account with the bank issuing the card.
- Even with bad credit, you should compare annual fees, interest rates, and whether the card reports to all three credit bureaus before choosing one.
Secured cards: deposit required, easiest approval
A secured credit card works like this: you deposit $500 to $2,500 into a savings account held by the card issuer. That amount becomes your credit limit. You use the card like any other — buy things, pay the bill each month — and the deposit stays frozen the whole time. After 6 to 24 months of on-time payments, many issuers convert you to an unsecured card and return your deposit.
Secured cards approve almost anyone with a bank account and a valid ID, regardless of credit score. The lender's risk is capped by your deposit, so your credit history matters less. The Capital One Secured Mastercard, Discover Secured Mastercard, and U.S. Bank Visa Secured Card are the most common options. Credit unions often offer their own secured cards to members, sometimes with lower deposit minimums.
The catch is that your money is tied up. If you deposit $1,000, you cannot spend it — you can only spend against it with the card. Interest rates on secured cards run 18% to 24%, which is high but lower than unsecured bad-credit cards. Annual fees range from $0 to $95, depending on the issuer. The card reports your payments to all three credit bureaus, so on-time payments rebuild your score over time.
Unsecured cards for bad credit: higher cost, no deposit
Some card issuers will approve you without requiring a deposit, even with bad credit. These are unsecured cards, and they cost more to use. Annual fees typically run $39 to $99. Interest rates are often 25% to 36%. Some cards also charge monthly fees for credit monitoring or other services you may not want.
The Credit One Bank Visa, Milestone Mastercard, and Surge Mastercard are examples. They approve people with scores in the 500s and 600s. The appeal is obvious — no money locked up upfront. But the total cost is steep. On a $1,000 balance, a 29% interest rate costs you $290 per year in interest alone, plus the annual fee on top. A secured card at 20% interest costs $200 in interest, plus a lower or zero annual fee.
Unsecured bad-credit cards make sense only if you cannot save the deposit for a secured card, or if you need a card when ready and plan to pay the balance in full each month. If you carry a balance, the higher rates and fees will cost you more than a secured card over time.
What happens during the approval process
When you submit an process, the card issuer will pull your credit report and check your credit score. They will also verify your income, employment, and whether you have other accounts with them. Most decisions come back within minutes to a few days. A hard inquiry appears on your credit report and can lower your score by a few points, but the effect fades within months.
If you are denied, you have the right to a written explanation. Common reasons include a score below their minimum threshold, recent late payments, or too much existing debt relative to your income. If you are denied, wait at least three to six months before explore again — multiple applications in a short time hurt your score and signal desperation to lenders.
If you are approved, the card issuer will tell you your credit limit and when your account opens. For secured cards, you will need to fund the deposit account before the card is activated. For unsecured cards, you can usually use the card within days of approval.
Building credit while using these cards
The whole point of a bad-credit card is to rebuild your score. That happens only if you use the card and pay on time. Here is what actually moves your score: payment history (35% of your score), how much of your limit you use (30%), and how long you have had credit (15%). The other factors — new inquiries and credit mix — matter less.
To rebuild fastest, use the card for a small recurring charge — a subscription or utility bill — and pay it in full each month. This shows consistent, on-time payment without racking up interest charges. Keep your balance below 30% of your limit; using $300 of a $1,000 limit is fine, but using $900 signals financial stress to lenders and hurts your score even if you pay on time.
After 6 to 12 months of on-time payments, your score will likely improve enough to may have access to for better cards with lower rates and no annual fees. At that point, you can close the bad-credit card or keep it open to maintain your credit history length. Do not close it when ready after upgrading — the older account helps your score.
Comparing cards side by side
| Card Type | Deposit Required | Typical Annual Fee | Typical Interest Rate | Approval Odds |
|---|---|---|---|---|
| Secured (Capital One, Discover, U.S. Bank) | $500–$2,500 | $0–$95 | 18%–24% | Very high |
| Unsecured bad-credit (Credit One, Milestone, Surge) | None | $39–$99 | 25%–36% | High |
| Credit union secured | $300–$1,000 | $0–$50 | 16%–22% | Very high (members only) |
When comparing cards, look at the total cost of using them for one year. Add the annual fee to the interest you would pay on a typical balance. A secured card with a $0 annual fee and 20% interest costs less than an unsecured card with a $99 annual fee and 29% interest, even though the unsecured card sounds simpler.
Also check whether the card reports to all three credit bureaus — Equifax, Experian, and TransUnion. If it reports to only one or two, your credit-building progress will be slower. Most major issuers report to all three, but some smaller ones do not.
Alternatives if you cannot get approved
If you are denied for both secured and unsecured cards, a few other paths exist. A credit builder loan from a credit union works like a secured card but builds credit differently — you borrow a small amount ($300 to $1,000), make monthly payments, and the lender holds the money in a savings account. After you repay, you get the money back. This costs less than a credit card and rebuilds your score just as well.
A co-signer — someone with good credit who agrees to pay if you do not — can help you get approved for a standard card. The risk is real: if you miss a payment, it damages both your credit and theirs. Use this option only if you are confident you can pay on time.
You can also ask to be added as an authorized user on someone else's card. If that person has good credit and pays on time, their payment history can boost your score without you having to may have access to on your own. This works only if the card issuer reports authorized user accounts to the credit bureaus.
Frequently Asked Questions
Will getting a bad-credit card hurt my score?
The process itself causes a small, temporary drop — usually 5 to 10 points — because of the hard inquiry. But if you use the card responsibly and pay on time, your score will recover and then improve within a few months. The long-term benefit outweighs the short-term dip.
Can I get a credit limit increase on a secured card?
Yes, but usually only after several months of on-time payments. You can either deposit more money to raise your limit, or the issuer may increase it automatically. Some issuers also convert secured cards to unsecured after 6 to 24 months, at which point your limit may increase without a deposit.
What if I cannot afford the deposit for a secured card?
Start with a credit builder loan from a credit union, which requires smaller deposits and costs less. If that is not available, an unsecured bad-credit card is your next option, though it costs more. Some secured cards allow deposits as low as $300, so compare minimums before assuming you cannot afford one.
How long does it take to rebuild credit with one of these cards?
Most people see a 50 to 100 point improvement within 6 to 12 months of on-time payments. The exact timeline depends on how bad your credit is to start with and what else is on your report. Late payments and collections take longer to recover from than a low score alone.
Should I close the card once my credit improves?
No. Closing it removes available credit from your report and shortens your average account age, both of which hurt your score. Keep it open and use it occasionally, even after you get better cards. The older account helps your credit profile long-term.