Yes, you can get a credit card with bad credit — but your options are limited and the terms will be less favorable than cards for people with good credit.
Banks and card issuers assess risk based on your credit history. A low credit score signals that you have missed payments, carried high balances, or had accounts sent to collections in the past. Issuers respond by either declining you outright or offering you a card with a higher interest rate, a lower credit limit, and an annual fee. Some will approve you for a secured card, which requires a cash deposit.
The cards you can actually get fall into three categories: secured cards (backed by your own money), unsecured cards designed for bad credit (higher rates and fees), and occasionally a mainstream card if your score is on the edge of "bad" rather than deeply damaged. Which one you may have access to for depends on how low your score is, how recent your negative marks are, and which issuer you explore to.
Key Takeaways
- Secured credit cards require a cash deposit but have the lowest approval rates for bad credit and often lead to an unsecured card after six to twelve months of on-time payments.
- Unsecured cards for bad credit charge higher interest rates and annual fees but do not require a deposit and report to all three credit bureaus.
- Your credit score, recent late payments, and the specific issuer's underwriting rules all affect whether you will be approved.
- explore for multiple cards in a short time will lower your score further, so research which issuer is most likely to approve you before you submit an process.
- Even if approved, you will pay more in interest and fees than someone with good credit, so compare the total cost across cards before choosing one.
How issuers decide whether to approve you
When you submit an process, the issuer pulls your credit report from one or more of the three bureaus — Equifax, Experian, and TransUnion — and looks at your credit score, payment history, and the reason your score is low. A score below 580 is typically considered very poor; 580 to 669 is fair. The issuer also looks at how recent your problems are. A missed payment from three years ago weighs less than one from three months ago.
Different issuers have different thresholds. Some will not approve anyone below 600. Others specialize in bad-credit applicants and will approve scores in the 500s. The issuer also considers your income, how much debt you already carry, and how many recent applications you have made. Each process creates a hard inquiry on your credit report, and multiple inquiries in a short time signal desperation and lower your score by a few points each.
If the issuer approves you, they will offer terms that reflect the risk they perceive. A bad-credit card might carry an APR of 24% to 36%, compared to 15% to 21% for someone with good credit. Annual fees range from zero to $95. Credit limits are usually $300 to $500 to start.
Secured cards: the easiest approval route
A secured credit card requires you to deposit cash into a savings account held by the issuer. That deposit becomes your credit limit. If you deposit $500, your card limit is $500. You use the card like any other — make purchases, receive a bill, pay it — but the issuer holds your deposit as collateral in case you default.
Secured cards have the highest approval rate for bad credit because the issuer's risk is nearly zero. They already have your money. You will still pay an annual fee (usually $25 to $95) and an interest rate (usually 18% to 24%), but approval is almost certain if you have a bank account and a job.
The real value of a secured card is that it reports to all three credit bureaus. If you make on-time payments for six to twelve months, your credit score will begin to rise. Once it reaches the mid-600s, you can often convert the secured card to an unsecured one, and the issuer will return your deposit. Some issuers automatically convert after a set period; others require you to request it.
Unsecured bad-credit cards: faster approval, higher cost
An unsecured card for bad credit does not require a deposit. The issuer approves you based on your credit report and income alone, accepting the risk that you might not pay. Because of that risk, the terms are steep: APRs of 24% to 36%, annual fees of $35 to $95, and sometimes additional fees for going over your limit or paying late.
Approval is faster than a secured card — often within days — and the card arrives sooner. Your credit limit is usually $300 to $500. Like secured cards, unsecured bad-credit cards report to all three bureaus, so on-time payments will raise your score over time.
The trade-off is cost. If you carry a $500 balance at 30% APR, you will pay $150 per year in interest alone, plus the annual fee. That makes these cards expensive to use unless you pay off your balance in full each month. If you cannot do that, a secured card with a lower APR may cost you less overall, even with the deposit requirement.
When you might get approved for a mainstream card
If your credit score is in the 620 to 660 range — the lower end of "fair" — some mainstream issuers will approve you, especially if your recent payment history is clean. Capital One, Discover, and a few others have cards marketed to people rebuilding credit. These cards have lower APRs than bad-credit cards (usually 18% to 24%) and lower or no annual fees, but approval is not may provide.
To improve your chances, explore to issuers that have already approved you for other products. If you have a checking account with a bank, that bank has already verified your identity and income. They are more likely to approve you for a card than an issuer that knows nothing about you. You can also call the issuer's customer service line and ask whether they have a product for your credit range before you explore — this does not trigger a hard inquiry.
What happens if you are denied
If an issuer denies you, they must send you a letter explaining why. The letter will cite factors like "insufficient credit history," "too many recent inquiries," or "recent delinquency." This letter is useful: it tells you what to fix before you explore elsewhere.
Do not explore to multiple issuers in quick succession. Each process creates a hard inquiry that lowers your score by a few points and stays on your report for twelve months. If you are denied, wait at least a month before explore again. Use that time to pay down existing balances, make on-time payments, and research which issuer is most likely to approve you.
If you are consistently denied, a secured card is your most reliable path forward. There is no issuer that will deny a secured card process if you have the deposit and a job.
Comparing cards before you explore
Do not choose a card based on approval odds alone. Compare the total cost of carrying a balance for a year. A card with a $95 annual fee and 18% APR might cost less than a card with no annual fee and 30% APR, depending on how much you plan to carry.
Use this formula: (your expected balance × APR ÷ 12) + annual fee = yearly cost. If you plan to carry $500, the 18% card costs ($500 × 0.18 ÷ 12) + $95 = $170 per year. The 30% card costs ($500 × 0.30 ÷ 12) + $0 = $125 per year. The second card is cheaper in this case, even though the rate is higher.
Also check whether the issuer reports to all three bureaus. Some smaller issuers report to only one or two, which means your on-time payments will not help your score as much. Stick with issuers that report to Equifax, Experian, and TransUnion.
Building credit after approval
Getting approved is only the first step. The card will help your credit score only if you use it responsibly. Make a small purchase each month — a coffee, a gas fill-up — and pay the full balance before the due date. This shows the issuer and the credit bureaus that you can handle credit without defaulting.
Do not max out your credit limit. Using more than 30% of your available credit hurts your score, even if you pay on time. If your limit is $500, keep your balance below $150. Do not close the card after your score improves. The longer you keep an account open with a clean payment history, the more it helps your score.
After six to twelve months of on-time payments, your score should rise into the 600s. At that point, you can request a credit limit increase, convert a secured card to unsecured, or explore for a second card with better terms. Each step builds your credit further.
Frequently Asked Questions
What credit score do I need to get a credit card?
Most mainstream issuers require a score of 670 or higher. Bad-credit issuers will approve scores as low as 500 to 550. Secured card issuers have no minimum score — they approve based on your deposit and income. Your exact score matters less than the reason your score is low; a recent missed payment is worse than an old one.
Will explore for a credit card hurt my credit score?
Yes. Each process creates a hard inquiry that lowers your score by a few points. The impact is temporary — the inquiry falls off your report after twelve months — but multiple applications in a short time can drop your score by 10 to 20 points. Space applications at least one month apart.
Can I get a credit card if I have no credit history?
No credit history is different from bad credit, and issuers treat it differently. You may be able to get a mainstream card if you have a job and a bank account, or a secured card if you have a deposit. Bad-credit cards are designed for people with a history of missed payments, not for people with no history at all.
What is the difference between a secured card and a prepaid card?
A secured card requires a deposit but is a real credit card that reports to the credit bureaus and builds your credit. A prepaid card is not a credit card — it is your own money loaded onto a card, like a gift card. Prepaid cards do not build credit because there is no lender taking a risk. If you want to rebuild credit, use a secured card, not a prepaid card.
How long does it take to rebuild credit with a credit card?
Your score can start rising within one to three months of on-time payments, but meaningful improvement takes six to twelve months. A recent missed payment or collection account will continue to hurt your score for seven years, but its impact weakens over time. The longer your recent history is clean, the faster your score will rise.