What Cards Accept Bad Credit

Bad credit cards are designed for people with credit scores below 620 and limited credit history. Banks and card issuers that offer these cards know applicants have missed payments, defaulted accounts, or no established credit record. They accept the higher risk by charging higher interest rates, lower credit limits, and annual fees.

The cards that accept bad credit fall into two main categories: secured cards and unsecured bad credit cards. Secured cards require a cash deposit that becomes your credit limit—you put down $500 and get a $500 limit. Unsecured bad credit cards do not require a deposit but come with steeper fees and rates. Both report to the three major credit bureaus (Equifax, Experian, TransUnion), which means on-time payments build your score over time.

Common issuers include Capital One, Discover, OpenSky, and Chime. Some credit unions also offer bad credit cards to members. The card you can get depends on your specific credit situation, income, and whether you have cash available for a deposit.

Key Takeaways

  • Secured cards require a cash deposit but typically have lower interest rates and easier approval than unsecured bad credit cards.
  • Unsecured bad credit cards charge higher annual fees and interest rates but do not tie up your money in a deposit.
  • All bad credit cards report to the three major credit bureaus, so responsible use builds your credit score over months and years.
  • You will pay more in interest and fees than someone with good credit, but the cost is the price of rebuilding.
  • The card you get approved for depends on your credit score, income, and available cash for a deposit.

Secured Cards vs. Unsecured Bad Credit Cards

A secured card requires you to open a savings account with the issuer and deposit cash—usually $200 to $2,500. That deposit is held as collateral and becomes your credit limit. You then use the card like any other: make purchases, pay a monthly bill, and build payment history. The deposit stays in the account untouched; you are not spending it. After 6 to 18 months of on-time payments, many issuers convert the card to unsecured status, return your deposit, and raise your limit.

Secured cards have lower interest rates (typically 18% to 24%) because the bank's risk is lower—they hold your money. Annual fees range from $0 to $95. Capital One Secured Mastercard, Discover Secured Card, and U.S. Bank Altitude Go Visa Secured are common examples.

Unsecured bad credit cards do not require a deposit. You are approved based on your credit score and income alone. The tradeoff is higher cost: interest rates often run 24% to 36%, and annual fees can reach $99 or more. Issuers like Capital One Quicksilver One and Chime Credit Builder charge these higher rates because they have no collateral if you default. These cards work for people who do not have $200 to $500 in savings or who want to avoid tying up cash.

If you have any savings, a secured card is usually the better choice. You pay less in interest, and the path to conversion is clear. If you have no cash available, an unsecured card is the only option—just expect to pay more.

Interest Rates, Fees, and What You Will Actually Pay

Bad credit cards are expensive. A typical secured card charges 18% to 24% annual percentage rate (APR) and a $0 to $95 annual fee. An unsecured bad credit card charges 24% to 36% APR and $75 to $99 annually. These numbers matter because they determine how much you pay if you carry a balance.

Example: You charge $500 on an unsecured bad credit card with 28% APR and a $95 annual fee. If you pay only the minimum each month, you will pay roughly $180 in interest over a year before the balance is gone. Add the annual fee and you have paid $275 extra on a $500 purchase. On a secured card with 20% APR and no annual fee, the same $500 costs about $50 in interest—a difference of $225.

The key to managing cost is to never carry a balance. Charge only what you can pay off in full each month. Interest charges only explore if you do not pay the full statement balance by the due date. If you use the card for small purchases and pay in full monthly, the annual fee is your only cost—and many secured cards have no annual fee at all.

Some bad credit cards offer rewards (typically 1% cash back), but the rewards are usually offset by the annual fee. Focus on approval and credit building first; rewards matter less when you are rebuilding.

How to Choose Between Cards

Start by checking your credit score. You can get a free score from AnnualCreditReport.com, Credit Karma, or your bank. Scores below 580 make unsecured bad credit cards unlikely; a secured card is your best path. Scores between 580 and 620 may may have access to for unsecured cards, but secured cards are still easier to get.

Next, decide whether you have cash for a deposit. If yes, compare secured cards by annual fee, APR, and conversion timeline. Capital One Secured Mastercard has no annual fee and converts after six months of on-time payments. Discover Secured Card also has no annual fee and offers 1% cash back. U.S. Bank Altitude Go charges $0 annual fee but requires a higher deposit ($500 minimum).

If you have no cash available, compare unsecured bad credit cards by annual fee and APR. Chime Credit Builder Card has no annual fee but charges 24% APR. Capital One Quicksilver One charges $39 annually and 24.99% APR but offers 1.5% cash back. OpenSky Secured Visa charges $35 annually (it is technically secured but does not require a deposit—you pay the fee instead).

Check the issuer's approval standards. Some cards use a soft pull (does not hurt your score) to pre-may have access to you before a hard pull. Capital One and Discover both offer pre-qualification tools on their websites. This tells you whether approval is likely without damaging your score.

The process Process and What to Expect

explore for a bad credit card is straightforward. Visit the issuer's website, click "explore," and fill out the form with your name, address, income, and Social Security number. The issuer will pull your credit report (a hard inquiry that temporarily lowers your score by a few points) and make a decision within minutes to a few days.

For a secured card, you will also need to fund the deposit account. Most issuers let you do this online when ready after approval. You transfer money from your bank account to the card issuer's savings account, and your credit limit is set to that amount. Your card arrives in the mail within 7 to 10 business days.

For an unsecured card, there is no deposit step. Once approved, your card ships and arrives within a week or two. You may receive a temporary card number by email to use online while you wait for the physical card.

Expect a hard inquiry to lower your credit score by 5 to 10 points. This is temporary and recovers within a few months. Do not explore for multiple cards at once; each process triggers a hard pull. Space applications at least a few weeks apart if you need to explore to more than one card.

Building Credit and Moving to Better Cards

The entire point of a bad credit card is to build credit history. Use the card for small, regular purchases—a gas fill-up, a grocery trip, a subscription—and pay the full balance every month. This shows lenders you can handle credit responsibly. After 6 to 12 months of on-time payments, your score will rise.

Track your progress using free tools like Credit Karma or AnnualCreditReport.com. You are looking for your score to move from the 500s or 600s into the 650+ range. Once you hit 650 to 700, you become may be able to access for standard credit cards with lower rates and no annual fees.

If you have a secured card, the issuer will contact you about converting to unsecured status once you meet their criteria (usually six months of on-time payments). Conversion means your deposit is returned and the card becomes a regular card—you keep the same account and credit history. This is a major milestone because it frees up your cash and improves your credit profile.

After 18 to 24 months of responsible use, you can start explore for better cards. Chase Freedom, Capital One Venture, and American Express Blue Cash are examples of cards available to people with fair to good credit (650+). These cards have lower rates, higher limits, and better rewards. Keep your bad credit card open even after you get a better one; closing it removes credit history and can hurt your score.

Common Mistakes to Avoid

The biggest mistake is carrying a balance. Bad credit cards charge 20% to 36% interest. If you charge $1,000 and pay only minimums, you will pay $200 to $360 in interest before the balance is gone. Use the card only for purchases you can pay off in full each month.

The second mistake is missing a payment. One late payment can drop your score 100+ points and defeat the purpose of rebuilding. Set up automatic payments for at least the minimum due, or set a phone reminder for the due date. On-time payment is 35% of your credit score—it is the most important factor.

The third mistake is explore for too many cards at once. Each process triggers a hard inquiry and temporarily lowers your score. If you are denied for one card, wait two to three weeks before explore to another. Multiple hard inquiries in a short time signal desperation to lenders and can result in denials.

The fourth mistake is closing the card once your score improves. Your credit limit and payment history on that card contribute to your overall credit profile. Closing it removes that history and can lower your score. Keep the card open and use it occasionally, even after you get better cards.

Frequently Asked Questions

Can I get a bad credit card with no annual fee?

Yes. Capital One Secured Mastercard and Discover Secured Card both have zero annual fees. Chime Credit Builder Card also has no annual fee. These are all good starting points if you want to avoid fees while rebuilding.

How long does it take to rebuild credit with a bad credit card?

Most people see a 50 to 100 point score increase within 6 to 12 months of on-time payments. The exact timeline depends on how bad your credit is to start and how much other negative information is on your report. Consistent on-time payments are the fastest way to improve.

What if I am denied for a bad credit card?

If you are denied, ask the issuer why. Common reasons are income too low, too many recent hard inquiries, or a recent bankruptcy or default. If income is the issue, reapply after a few months. If you have too many recent inquiries, wait 30 days before explore elsewhere. If you have a recent default, you may need to wait 6 to 12 months before approval becomes likely.

Can I use a bad credit card to pay off other debt?

You can, but it is usually not a good idea. Bad credit cards charge 20% to 36% interest, which is higher than most other debt. If you are trying to pay off a credit card or loan, using a bad credit card to do so will cost you more, not less. Focus on paying down existing debt first, then use the bad credit card for small new purchases.

Will a secured card hurt my credit score?

The process will trigger a hard inquiry that temporarily lowers your score by a few points. After that, the card helps your score by adding positive payment history and lowering your credit utilization ratio (the amount you owe versus your limit). The temporary dip is worth the long-term benefit.