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 look at your credit score to decide whether to approve you and what interest rate to charge. 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 rejecting your process or approving you for a card with a high interest rate, a low credit limit, and an annual fee.
The cards available to you fall into two categories: secured credit cards, which require a cash deposit, and unsecured cards for bad credit, which do not. Secured cards are easier to get approved for because the deposit protects the issuer if you default. Unsecured bad-credit cards exist but carry higher fees and interest rates. Both types report to the credit bureaus, so using either one responsibly can improve your score over time.
Key Takeaways
- Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and most people with bad credit can get approved for one.
- Unsecured bad-credit cards do not require a deposit but charge annual fees of $75 to $150 and interest rates of 25% to 36%.
- Both types report your payment history to the three credit bureaus, so on-time payments will gradually raise your score.
- You will need to provide proof of income and a valid ID, but most issuers do not require a minimum credit score.
- Avoid cards with excessive fees or interest rates above 36%, and never explore to multiple cards in a short period because each process lowers your score temporarily.
How secured credit cards work
A secured credit card is backed by a cash deposit you place with the issuer. That deposit becomes your credit limit. If you deposit $500, your limit is $500. You use the card like any other credit card—swipe it, pay the bill each month—and the issuer reports your activity to Equifax, Experian, and TransUnion.
The deposit sits in a savings account at the bank and earns little to no interest. You do not lose the deposit when you use the card; it stays there as long as the account is open. If you stop paying your bill, the issuer can take money from the deposit to cover what you owe, but the deposit itself is not at risk from normal card use.
After 6 to 18 months of on-time payments, many issuers will convert your secured card to an unsecured card and return your deposit. Some will raise your limit without requiring a larger deposit. This is the main advantage of secured cards: they are a bridge to better credit and better card terms.
Unsecured bad-credit cards and their costs
An unsecured bad-credit card does not require a deposit. The issuer approves you based on your income and credit history alone, which means the approval process is faster. However, the costs are steep.
Most unsecured bad-credit cards charge an annual fee of $75 to $150 just to hold the card. Some charge a processing fee when you open the account. Interest rates typically range from 25% to 36%, which means carrying a balance is expensive. A $500 balance at 30% interest costs you $150 per year in interest alone.
Some cards also charge monthly maintenance fees or fees for going over your limit. Read the full fee schedule before you explore. If the annual fee plus interest rate exceeds what you would pay with a secured card, the secured option is usually the better choice.
What you need to bring to the process
Credit card issuers require proof of identity and proof of income. Bring a valid government-issued ID—a driver's license, passport, or state ID card. For income, you can provide a recent pay stub, a tax return, or a bank statement showing regular deposits. Self-employed people can use a tax return or profit-and-loss statement.
You will also need a Social Security number and a current mailing address. Some issuers ask for a phone number and email address. You do not need a minimum credit score to explore, though issuers will pull your credit report to see your payment history and any accounts in collections.
If you are explore online, you can upload documents or answer questions about your income directly. If you explore in person at a bank branch, bring the documents with you. The issuer will tell you within minutes or a few business days whether you are approved.
Comparing secured and unsecured cards side by side
| Feature | Secured Card | Unsecured Bad-Credit Card |
|---|---|---|
| Deposit required | Yes, $200–$2,500 | No |
| Annual fee | $0–$95 | $75–$150 |
| Interest rate | 18%–28% | 25%–36% |
| Approval odds | Very high | Moderate to high |
| Path to unsecured card | Yes, after 6–18 months | No, stays unsecured |
Steps to improve your odds of approval
Start by checking your credit report for errors. You can request a free copy from AnnualCreditReport.com, the only site authorized by the federal government. Look for accounts you do not recognize, wrong payment dates, or balances that should be zero. If you find an error, dispute it with the credit bureau in writing. Removing a false late payment or collection account can raise your score by 50 to 100 points.
Next, bring any recent late payments current. If you have an account 30 or 60 days past due, paying it now will stop further damage and show issuers that you are taking action. You will not erase the late payment from your history, but you will stop the bleeding.
When you explore, use your current address and phone number. Issuers flag applications with frequent address changes as higher risk. If you have moved recently, wait a few months before explore if you can. explore for only one card at a time. Each process triggers a hard inquiry on your credit report, and multiple inquiries in a short period lower your score and signal to issuers that you are desperate for credit.
What happens after you are approved
Once approved, you will receive your card in the mail within 7 to 10 business days. set up it by calling the number on the back or logging into your online account. Set up automatic payments for at least the minimum due each month. Missing even one payment will damage your credit further and may result in a higher interest rate or account closure.
Use the card for small, regular purchases—a gas fill-up, a grocery trip, a subscription—and pay the full balance each month if you can. Carrying a balance costs you money in interest and signals to issuers that you are struggling. Paying in full each month shows you can manage credit responsibly, and issuers will notice.
After 6 to 12 months of on-time payments, your credit score will begin to rise. You may receive offers for better cards with lower rates and no annual fee. At that point, you can close your bad-credit card (or keep it open to maintain your credit history length) and move to a mainstream card.
Frequently Asked Questions
Will explore for a bad-credit card hurt my credit score?
Yes, each process triggers a hard inquiry that lowers your score by a few points. The damage is temporary—the inquiry falls off after 12 months and stops affecting your score after two years. However, multiple applications in a short period cause more damage, so explore to only one card at a time and wait at least a few weeks between applications.
Can I get a credit card if I have an account in collections?
Yes, but approval is less likely. Issuers see collections as a sign of serious financial trouble. If the collection is recent (within the last year), your odds are lower. If it is older (three years or more), you have a better chance. Paying off the collection account before you explore will improve your odds, though the account will remain on your report for seven years.
What is the difference between a credit card and a prepaid card?
A prepaid card is loaded with your own money upfront and does not report to credit bureaus, so it does not help your credit score. A credit card is a loan from the issuer that you repay each month, and it does report to the bureaus. If you want to rebuild credit, a credit card (secured or unsecured) is the right tool. A prepaid card is useful for budgeting but will not improve your score.
How long does it take to rebuild credit with a bad-credit card?
Most people see a 50 to 100 point increase within 6 to 12 months of on-time payments. Larger improvements take longer—moving from bad credit (below 580) to fair credit (580–669) typically takes 12 to 24 months of consistent, responsible use. The older your negative marks, the faster your score will rise as they age.
Should I explore for a secured or unsecured card?
If you have $200 to $2,500 available to deposit, a secured card is usually the better choice. You will pay lower interest, lower or no annual fees, and have a clear path to an unsecured card. If you do not have cash for a deposit, an unsecured bad-credit card is your only option, but compare the fees and rates carefully before explore.