You can get a credit card with bad credit, but you will need to choose the right type and prepare your process carefully
Banks and card issuers do lend to people with low credit scores, but they structure the offer differently than they do for borrowers with good credit. The most common route is a secured credit card, which requires you to put down a cash deposit that becomes your credit limit. You might deposit $500 and receive a $500 card. Another option is an unsecured card designed for bad credit, which does not require a deposit but charges higher interest rates and annual fees. A third path is becoming an authorized user on someone else's account — if that person has good credit and pays on time, the account history may show up on your credit report and help you build your score.
The card issuer will still pull your credit report and check your income, but they are looking at different things than a mainstream lender would. They want to see that you have not defaulted recently, that you have some income, and that you are not already maxed out on other cards. Even with a low score, you have options — you just need to know which ones exist and what each one costs you.
Key Takeaways
- Secured cards require a cash deposit but often have lower interest rates and fees than unsecured bad-credit cards, and many convert to regular cards after you build your score.
- Unsecured bad-credit cards charge higher annual fees and interest rates but do not require money upfront, so they suit people who cannot save a deposit quickly.
- Becoming an authorized user on someone else's card can help your credit score if that person pays on time, but you are not responsible for the bill.
- You will need to provide proof of income and a valid ID, and the issuer will check your credit report even if your score is low.
- After six to twelve months of on-time payments, many secured cards convert to unsecured cards and return your deposit.
Secured Credit Cards: How They Work and What They Cost
A secured card is the most straightforward path for someone with bad credit. You open a savings account with the card issuer, deposit money (usually $200 to $2,500), and that amount becomes your credit limit. You then use the card like any other card — swipe it, pay the bill each month — and the issuer reports your payment history to the credit bureaus. The deposit sits untouched in the account; it is not a fee, and you get it back when you close the card or when the issuer converts it to an unsecured card.
The catch is that you have to have the cash available. If you do not have $500 to $1,000 sitting aside, a secured card is not realistic right now. But if you do, the math often works in your favor. Secured cards typically charge interest rates between 18% and 24% and annual fees between $0 and $95. That is higher than a mainstream card, but lower than most unsecured bad-credit cards. After six to twelve months of on-time payments, many issuers will convert your card to an unsecured card, raise your limit, and return your deposit.
When you explore, have your deposit amount ready. The issuer will ask for your Social Security number, date of birth, and current income. They will pull your credit report but will not reject you based on your score alone — they are mainly checking whether you have recent defaults or unpaid collections. If you are approved, the deposit usually posts within one to three business days, and your card arrives within five to ten business days.
Unsecured Bad-Credit Cards: When You Cannot Save a Deposit
If you do not have cash to deposit, an unsecured bad-credit card lets you skip that step. You explore, get approved or denied based on your income and credit report, and if approved, you receive a card with no money down. The tradeoff is cost: unsecured bad-credit cards typically charge annual fees of $35 to $99 and interest rates of 24% to 36%. Some also charge monthly maintenance fees or fees for going over your limit.
These cards are real — they report to the credit bureaus just like any other card — but they are expensive to carry. If you have a $300 limit and a $99 annual fee, that fee alone eats up a third of your available credit. Interest charges add up quickly if you carry a balance. The best use case for an unsecured bad-credit card is someone who needs a card now, cannot save a deposit, and plans to pay off the balance in full each month to avoid interest charges.
When you explore, expect the issuer to ask for your name, address, Social Security number, and current income. Some issuers will ask for a phone number to verify employment. Approval or denial usually comes within one to three business days. If you are approved, your card typically arrives within seven to ten business days.
Becoming an Authorized User on Someone Else's Card
If you have a family member or close friend with good credit and a card in good standing, you can ask them to add you as an authorized user. You receive a card with your name on it, but the primary account holder is responsible for the bill. You are not legally liable for charges, and you do not have to use the card at all — the benefit is that the account history shows up on your credit report.
This works because credit bureaus weight payment history heavily in their scoring models. If the primary account holder has been paying on time for years and has a low balance, that positive history can help your score. The boost is not automatic — it depends on which credit bureau is reporting and how old the account is — but it can be significant. Some people see their score rise 50 to 100 points within a few months of being added as an authorized user.
The risk is that if the primary account holder misses a payment or runs up a high balance, that negative history will also show up on your report. Before you ask someone to add you, make sure you trust them to keep paying on time. And be clear about whether you will actually use the card or just benefit from the account history.
What You Need to Prepare Before You explore
Regardless of which type of card you choose, you will need the same basic documents. Have your Social Security number, date of birth, and current address ready. You will also need proof of income — this can be a recent pay stub, a tax return, a bank statement showing regular deposits, or a letter from your employer on company letterhead. If you are self-employed, bring your most recent tax return or a profit-and-loss statement.
The issuer will also ask for your current employment status and monthly income. Be honest about this — issuers verify income by phone or by checking public records, and lying can result in denial or account closure later. If you are unemployed or on a fixed income, you can still explore; some issuers count Social Security, disability payments, or unemployment benefits as income.
Pull your credit report before you explore so you know what the issuer will see. You can get a free report from each of the three major bureaus — Equifax, Experian, and TransUnion — once per year at annualcreditreport.com. Check for errors, old collections, or accounts you do not recognize. If you find errors, dispute them with the bureau before you explore; fixing them can raise your score and improve your odds of approval.
How to Choose Between Secured, Unsecured, and Authorized User
Start by asking yourself three questions: Do I have cash to deposit? Do I need a card right now, or can I wait a few months? Do I know someone with good credit who will add me to their account?
If you have $500 to $1,000 saved, a secured card is usually your best bet. The fees and interest rates are lower than unsecured cards, and you have a clear path to converting to an unsecured card within a year. The deposit also forces you to think carefully about how much credit you actually need.
If you do not have savings but need a card now — for emergencies, to rebuild your credit, or to make online purchases — an unsecured bad-credit card is your option. Just be aware of the fees and plan to pay your balance in full each month if possible.
If someone you trust is willing to add you as an authorized user, that is often the fastest and cheapest way to start rebuilding your credit. You get the benefit of their good payment history with no cost to you. But do not rely on this alone — you should also get your own card so you have your own payment history to build.
What Happens After You Get Approved
Once your card arrives, use it for small purchases you would make anyway — groceries, gas, a coffee — and pay the full balance when the bill comes. This shows the issuer that you can handle credit responsibly. Do not max out your limit or carry a balance if you can avoid it; high balances and missed payments will hurt your score and make it harder to get better cards later.
After six to twelve months of on-time payments, many issuers will review your account and offer to convert your secured card to an unsecured card, raise your limit, and return your deposit. Some will do this automatically; others will send you a letter asking if you want to convert. Take the offer — it means your credit is improving and you no longer need the deposit.
Keep using the card even after it converts. Your payment history is what matters most to future lenders. After two years of on-time payments, you should be able to may have access to for mainstream cards with better rates and rewards.
Frequently Asked Questions
Will explore for a credit card hurt my credit score?
Yes, but only slightly and temporarily. When you explore, the issuer pulls your credit report, which counts as a "hard inquiry" and can lower your score by a few points. The impact fades after a few months. Multiple applications in a short time can hurt more, so space out your applications by at least a few weeks if you are explore to more than one card.
Can I get a credit card if I have collections or a charge-off on my report?
Yes, but it depends on how recent. If the charge-off or collection is more than two years old, most issuers will still consider you. If it is recent — within the last year — your options are more limited, and you may need to go with a secured card. Some issuers also ask whether you have paid the collection; paying it off can improve your odds of approval.
What is the difference between a credit card and a prepaid card?
A credit card reports to the credit bureaus and helps you build credit history. A prepaid card is like a gift card — you load money onto it and spend that money, but it does not report to the credit bureaus and does not help your credit score. For rebuilding credit, you need a real credit card, not a prepaid card.
How long does it take to rebuild my credit after getting a bad-credit card?
Credit scores change slowly. After three to six months of on-time payments, you should see a modest improvement — maybe 20 to 50 points. After one to two years, the improvement is usually more significant. The older your negative marks get, the less they hurt your score, so time and consistent on-time payments are your biggest tools.
Can I use a secured card to build credit if I am not trying to borrow money?
Yes. Even if you never plan to take out a loan or mortgage, a credit card can be useful for building a credit history, which affects things like insurance rates, rental applications, and utility deposits. Use it for small purchases and pay it off each month — you do not have to carry a balance to benefit from the account history.