You can get a credit card with bad credit, but your options are narrower and the terms will be less favorable than cards for people with good credit
A low credit score does not lock you out of credit cards entirely. Banks and card issuers still offer products to people with poor credit histories — they just charge higher interest rates, require deposits, or impose stricter limits. The real question is which type of card makes sense for your situation and whether getting one now will actually help you rebuild, or trap you in a cycle of high fees.
Your path depends on how low your score is, whether you have any credit history at all, and what you are trying to do: rebuild from nothing, recover from past damage, or straightforward get access to credit you need. Each route has different requirements and different risks.
Key Takeaways
- Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they report to the three credit bureaus just like regular cards.
- Unsecured cards for bad credit exist but charge annual fees of $25 to $95 and interest rates of 24% to 36%, making them expensive unless you pay the balance in full each month.
- Becoming an authorized user on someone else's good account can boost your score without requiring your own process, though it depends on the cardholder's willingness and the card issuer's reporting practices.
- Retail store cards and gas station cards often have lower credit score requirements than major card issuers, though their interest rates are similarly high.
- The goal is to use the card responsibly for three to six months, then move to a better card — staying on a high-fee card longer than necessary costs you money without additional credit-building benefit.
Secured credit cards: the most reliable path for bad credit
A secured credit card requires you to put down a cash deposit, usually between $200 and $2,500. That deposit becomes your credit limit. You use the card like any other — swipe it, pay the bill — and the deposit sits in a bank account untouched. After 12 to 24 months of on-time payments, the issuer typically converts the card to a regular unsecured card and returns your deposit.
Secured cards report to all three credit bureaus (Equifax, Experian, TransUnion), so they build your credit history the same way a regular card does. The catch is that you are paying for the privilege: many secured cards charge annual fees of $25 to $50, and interest rates run 18% to 24%. If you carry a balance, those rates hurt. The strategy that works is to charge small purchases you can pay off in full each month — a gas fill-up, a grocery trip — then pay the entire bill before interest accrues.
Secured cards are offered by major banks (Capital One, Discover, U.S. Bank) and some credit unions. You can open one even if you have no credit history, a recent bankruptcy, or a low score. The deposit requirement is the main barrier, not your credit past.
Unsecured cards for bad credit: higher cost, no deposit required
Some issuers offer unsecured cards to people with bad credit — no deposit needed. The tradeoff is steep: annual fees of $25 to $95, interest rates of 24% to 36%, and often a low starting credit limit of $300 to $500. Some cards also charge monthly fees just for holding the account.
These cards make sense only if you cannot save a deposit for a secured card right now, or if you need access to credit urgently. Otherwise, a secured card is the better choice because the deposit is yours to reclaim, whereas annual fees on an unsecured card are gone for good. If you do get an unsecured card, the same rule applies: use it for small purchases you can pay off monthly, and move to a better card as soon as your credit improves.
Read the fine print carefully. Some issuers charge fees for balance transfers, cash advances, or even late payments on top of the annual fee. A $300 credit limit with a $95 annual fee means you are paying nearly one-third of your limit just to have the card.
Becoming an authorized user on someone else's account
If someone with good credit — a family member, partner, or close friend — is willing to add you to their credit card account as an authorized user, their payment history can boost your credit score without you having to open your own card. You do not need to use the card or even receive a physical copy; the account holder can straightforward add your name to their existing account.
The benefit depends on the card issuer and the credit bureau. Most major issuers report authorized user accounts to all three bureaus, which means the account holder's on-time payments and low balance show up on your credit report. If the account has a long history and a low utilization rate (balance well below the credit limit), the effect on your score can be significant — sometimes 50 to 100 points in a few months.
The risk is that if the account holder misses a payment or runs up a high balance, your score suffers too. You also have no control over the account, so you are entirely dependent on the other person's financial discipline. This works best when you trust the person completely and when they are actively managing the account well.
Retail and gas station cards as a stepping stone
Department stores and gas stations often issue their own credit cards with lower credit score requirements than Visa or Mastercard issuers. A store like Target or Kohl's may approve you with a score in the 550 to 600 range, whereas a major bank card typically requires 620 or higher. Gas station cards (Shell, Chevron, Exxon) follow the same pattern.
These cards are useful as a stepping stone: get approved, use it for regular purchases at that store or station, pay on time, and after six months to a year, your score will improve enough to may have access to for a better card. The interest rates are high (22% to 28%), and the credit limit is usually low ($300 to $500), but the approval is easier and the card reports to the bureaus just like any other.
The downside is that these cards are less useful if you do not shop at that retailer regularly. A Target card does not help you if you never go to Target. Stick to cards from places you actually use.
What to do after you get the card: building credit, not just holding plastic
Getting approved is only the first step. The card only helps your credit if you use it responsibly. That means charging small amounts you can afford to pay off, paying the bill on time every single month, and keeping your balance low relative to your credit limit. Credit bureaus track two things: payment history (35% of your score) and utilization rate (30% of your score). Missing a payment or maxing out the card damages both.
A common mistake is to open a bad-credit card and then leave it unused, thinking it will help just by existing. It will not. The card needs activity — charges and payments — to show the bureaus that you can handle credit responsibly. Aim to use the card for one or two small purchases each month, then pay the full balance before the due date.
After three to six months of perfect payment history, your score will begin to improve. Once it reaches the mid-600s or higher, you become may be able to access for better cards with lower interest rates and no annual fees. That is when you should move on. Staying on a high-fee card longer than necessary is expensive and pointless — the credit-building benefit plateaus after six months, but the fees keep coming.
Comparing your options: secured vs. unsecured vs. authorized user
| Option | Deposit Required | Annual Fee | Interest Rate | Best For |
|---|---|---|---|---|
| Secured card | $200–$2,500 | $25–$50 | 18%–24% | Building credit from scratch or after damage; you get your deposit back |
| Unsecured bad-credit card | None | $25–$95 | 24%–36% | No savings available for a deposit; need credit access when ready |
| Authorized user | None | None | N/A | Someone with good credit willing to add you; fastest score improvement if account is in good standing |
| Retail or gas card | None | Usually none | 22%–28% | You shop at that retailer regularly; easier approval than major issuers |
Frequently Asked Questions
Will getting a credit card with bad credit hurt my score more?
A new credit card process triggers a hard inquiry, which temporarily lowers your score by a few points. But the long-term effect of responsible use — on-time payments and low balance — outweighs that small dip. Your score will recover and then improve within a few months if you use the card correctly.
How long does it take to improve my credit score with a new card?
Most people see a 20 to 50 point improvement within three to six months of on-time payments. The improvement accelerates if you also become an authorized user on a good account or if you pay down other existing debts. Larger jumps (100+ points) typically take 12 to 24 months of consistent good behavior.
Can I get a credit card if I have no credit history at all?
Yes. Secured cards are designed for people with no credit history. You do not need a credit score to open one — just the deposit and a bank account. After 12 to 24 months, you can convert to an unsecured card and move to better options.
What if I cannot afford the deposit for a secured card?
Start with a retail or gas station card, which requires no deposit and has lower approval requirements. Use it responsibly for six months, then move to a secured card once you have saved the deposit. Or ask a family member to add you as an authorized user on their account while you save.
Should I carry a balance to build credit faster?
No. Carrying a balance costs you money in interest and does not build credit faster than paying in full. On-time payments matter; the balance does not. Pay the full bill each month and your score will improve just as quickly without the interest charges.