What credit cards accept people with bad credit
You can get a credit card with bad credit, but your options are narrower and the terms are less favorable than they are for people with good credit. The main routes are secured credit cards (which require a cash deposit), unsecured cards designed for poor credit (which charge higher interest rates and fees), and store cards (which are often easier to obtain but only work at one retailer). Some people also use credit builder loans or becoming an authorized user on someone else's account, though neither gives you a card in your own name right away.
The catch is that cards for bad credit come with annual fees, higher interest rates, and lower credit limits. A secured card might charge $95 to $300 per year; an unsecured card for poor credit might charge $39 to $99 per year plus an interest rate of 24% to 36%. You are paying for the risk the card issuer takes by lending to you. The trade-off is that using one responsibly — making on-time payments and keeping your balance low — actually rebuilds your credit score over time.
Key Takeaways
- Secured credit cards require you to deposit cash as collateral, usually $200 to $2,500, and that deposit becomes your credit limit.
- Unsecured cards for bad credit charge higher annual fees and interest rates but do not require a deposit.
- Store cards and gas station cards are often easier to obtain with bad credit but only work at that one business.
- Your credit score improves when you use any of these cards and pay your full balance on time each month.
- Checking your credit report before you explore helps you understand why your score is low and spot errors that might be dragging it down.
How secured credit cards work
A secured credit card requires you to put money into a savings account held by the card issuer. That deposit is your collateral. The card issuer then gives you a credit card with a limit equal to your deposit — if you deposit $500, your limit is $500. You use the card like any other credit card: make purchases, receive a bill, and pay it back. The deposit stays in the account untouched unless you stop paying your bill.
The point of a secured card is not to use your deposit. It is to build a payment history. After 6 to 18 months of on-time payments, many issuers convert your secured card to an unsecured card, return your deposit, and raise your credit limit. Some cards do this automatically; others require you to ask. A few cards, like the Capital One Secured Mastercard and the Discover it Secured Credit Card, are known for converting relatively quickly and returning deposits without a hassle.
Secured cards still charge annual fees (usually $0 to $95) and interest rates (usually 18% to 24%), so they are not free. But they are one of the most reliable ways to rebuild credit if you have a few hundred dollars to set aside. The deposit is yours — you are not giving it away.
Unsecured cards designed for bad credit
Unsecured cards for poor credit do not require a deposit. Instead, the issuer takes a risk by lending to you based on your credit history alone. To offset that risk, they charge higher annual fees and interest rates. Cards in this category include the Credit One Bank Unsecured Visa, the Milestone Mastercard, and the OpenSky Secured Visa (despite the name, this one also does not require a deposit for some applicants).
The annual fees on unsecured cards for bad credit typically range from $39 to $99, and some cards charge additional fees for late payments, over-limit transactions, or foreign purchases. Interest rates usually sit between 24% and 36%. If you carry a balance, you will pay significant interest each month. The strategy that works is to charge small purchases you can pay off in full each month, so you build payment history without racking up interest charges.
These cards report to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments show up on your credit report and gradually raise your score. After 6 to 12 months of responsible use, you may be able to move to a card with better terms.
Store cards and gas station cards
Retail store cards and gas station cards are often easier to obtain with bad credit because the issuer is betting you will spend money at their business, not just on the card itself. Target, Walmart, Amazon, Best Buy, and most gas stations offer their own branded cards. The approval process is usually faster and the credit requirements are lower than for general-purpose credit cards.
The downside is that these cards only work at that one store or chain. You cannot use a Target card at Walmart. They also tend to have higher interest rates (often 18% to 24%) and may charge annual fees. Some store cards do not report to the credit bureaus, which means using them responsibly will not help your credit score — check before you explore. Others do report, and those can be useful for building credit as long as you pay on time.
Store cards make sense if you already shop at that retailer regularly and you are disciplined about paying your balance in full. If you are trying to rebuild credit, a secured card or an unsecured card designed for bad credit is usually a better choice because it reports to all three bureaus and works anywhere that card brand is accepted.
Credit builder loans as an alternative
A credit builder loan is not a credit card, but it serves a similar purpose: building your credit history. You borrow a small amount of money (usually $300 to $1,000) from a credit union or online lender, and the lender deposits it into a savings account in your name. You then make monthly payments to repay the loan, and after you finish, you get access to the money. The lender reports your payments to the credit bureaus, so on-time payments build your credit score.
Credit builder loans have lower interest rates than credit cards for bad credit (often 6% to 12%) and lower fees. The downside is that you do not have a card to use for everyday purchases — you are just building a payment history. Many people use a credit builder loan and a secured card together: the loan builds payment history, and the card lets them practice using credit responsibly.
Becoming an authorized user
If someone you trust — a family member or close friend — has a credit card with good payment history and available credit, you can ask them to add you as an authorized user on their account. You get a card in your name that draws from their credit line, and their payment history may show up on your credit report, potentially raising your score.
This works only if the primary account holder has good credit and makes on-time payments. If they miss a payment or run up a high balance, it will hurt your credit too. You also have no control over the account, so you are relying on someone else to manage it responsibly. Some card issuers do not report authorized user accounts to the credit bureaus, so check before you rely on this strategy.
Steps to take before you explore
Before you explore for any credit card, pull your credit report from all three bureaus. You can get a free report once per year from AnnualCreditReport.com, which is the official government site. Look for errors — accounts you did not open, late payments that were actually on time, or accounts that should have fallen off your report. Errors happen often, and disputing them can raise your score without you having to do anything else.
Check your credit score using a free tool like Credit Karma, NerdWallet, or your bank's website. Knowing your score tells you which cards you have a reasonable chance of obtaining. If your score is below 580, secured cards are your most reliable option. If it is between 580 and 669, you have access to some unsecured cards for bad credit. If it is above 670, you may may have access to for mainstream cards with better terms.
Avoid explore for multiple cards in a short period. Each process triggers a hard inquiry, which temporarily lowers your score by a few points. Space applications out by at least a few weeks. Also avoid cards that promise to rebuild your credit without a hard inquiry — those are usually scams or cards with predatory terms.
How to use a bad-credit card to rebuild your score
Getting a card is only the first step. How you use it determines whether your score improves. The most important rule is to pay your full balance on time, every month. Even one late payment can drop your score by 100 points or more. Set up automatic payments if you struggle to remember due dates.
Keep your balance low — ideally below 30% of your credit limit. If your limit is $500, try not to carry a balance above $150. This ratio, called your utilization rate, has a big effect on your credit score. High utilization signals to lenders that you are financially stressed, even if you pay on time.
Do not close the card after your score improves. Closing it shortens your credit history and raises your utilization rate on other cards, both of which hurt your score. Keep it open and use it occasionally, even if you have moved to a better card.
Frequently Asked Questions
Will explore for a bad-credit card hurt my score?
Yes, each process triggers a hard inquiry that typically lowers your score by a few points. The impact is temporary — it fades after a few months. Multiple applications in a short time do more damage, so space them out by at least a few weeks. The score boost from on-time payments will eventually outweigh the initial dip.
What is the difference between a secured card and a prepaid card?
A secured card requires a deposit and reports to credit bureaus, so it builds your credit history. A prepaid card is just a card loaded with your own money — it does not report to credit bureaus and does not build credit. If your goal is to rebuild credit, a secured card is the right choice.
Can I get a credit card if I have no credit history?
Yes. No credit history and bad credit are different problems. With no history, secured cards and store cards are your best options. You may also may have access to for some unsecured cards designed for people building credit from scratch. The process is the same as for bad credit: start with a card that reports to the bureaus, use it responsibly, and your score will grow.
How long does it take to rebuild credit with a bad-credit card?
Most people see a noticeable improvement within 6 to 12 months of on-time payments. Larger improvements take longer — rebuilding from very bad credit to good credit often takes 2 to 3 years. The timeline depends on how bad your credit is, what caused the damage, and how consistently you pay on time.
Should I pay off my balance in full or carry a small balance?
Always pay in full. Carrying a balance to "show" you can handle credit does not help your score and costs you money in interest. Your payment history and utilization rate are what matter. Paying in full keeps your utilization low and shows you can manage credit responsibly.