What credit cards will accept you with bad credit
Banks and card companies use your credit score to decide whether to issue you a card. When your score is low — typically below 580 — most standard cards will turn you down. But several types of cards exist specifically for people rebuilding credit: secured cards, unsecured bad-credit cards, and store cards. Each works differently and carries different costs.
A secured 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 — make purchases, pay a bill each month — but the bank holds your deposit as insurance against default. After 6 to 18 months of on-time payments, many issuers convert your account to a standard card and return your deposit.
An unsecured bad-credit card requires no deposit but charges higher interest rates and annual fees to offset the risk to the issuer. Store cards (issued by retailers like Target or Amazon) often have lower approval odds than bank cards but may be easier to get with bad credit. Each type reports to the three major credit bureaus — Equifax, Experian, and TransUnion — so responsible use actually rebuilds your score over time.
Key Takeaways
- Secured cards require a cash deposit but offer the fastest path to rebuilding credit if you make every payment on time.
- Unsecured bad-credit cards charge higher interest rates and annual fees but let you build credit without locking up cash.
- Your payment history — whether you pay on time every month — matters far more than the card type you choose.
- All three credit bureaus track your activity, so responsible use on any of these cards will gradually raise your score.
- Comparing interest rates and annual fees across cards can save you hundreds of dollars over a year of use.
How secured cards rebuild your credit
A secured card works because it removes the bank's risk. You deposit $500, you get a $500 limit. If you stop paying, the bank takes the deposit. This certainty lets them approve you even with a low score or no credit history.
The real power is in the reporting. Every month, the card issuer reports your payment to Equifax, Experian, and TransUnion. If you pay on time, every time, those bureaus record a positive payment. After 6 to 12 months of this history, your score begins to rise — sometimes by 50 to 100 points, depending on how low it started and what else is on your report.
The deposit itself does not count toward your credit limit or your score. It sits in a separate account, earning little or no interest. You cannot spend it. Its only purpose is to may provide the bank that you will not default. Once you have proven yourself — usually 12 to 18 months of perfect payments — the issuer converts the account to a standard card, returns your deposit, and you keep the card and the credit history you built.
Comparing interest rates and fees on bad-credit cards
Interest rates on bad-credit cards range widely. Secured cards typically charge 18% to 24% annual percentage rate (APR). Unsecured bad-credit cards often charge 24% to 36% APR or higher. Store cards can range from 16% to 29% APR depending on the retailer. These rates are higher than standard cards (which average 16% to 18% for good credit) because the issuer is taking on more risk.
Annual fees vary just as much. Some secured cards charge $0 annually. Others charge $25 to $95. Unsecured bad-credit cards often charge $35 to $99 per year. Store cards sometimes charge no annual fee. The fee comes out of your pocket whether you use the card or not, so a card with a $95 annual fee costs you money even if you only charge $200 all year.
Before you choose a card, calculate the real cost. If you carry a $500 balance on a card with 25% APR and a $50 annual fee, you will pay roughly $125 in interest plus $50 in fees over a year — $175 total. On a card with 20% APR and no annual fee, the same balance costs about $100 in interest. The difference is $75, which is real money. Check the card's terms document (called the Schumer Box) to find the APR and annual fee side by side.
What happens when you use a bad-credit card responsibly
Using a bad-credit card the right way means making small purchases and paying the full balance every month. Charge $50 to groceries, pay $50 when the bill arrives. This shows the credit bureaus that you can handle credit without overspending or missing payments.
Paying in full also saves you money on interest. If you carry a balance, interest accrues daily at your APR. A $500 balance on a 25% APR card costs you roughly $10 per month in interest alone. Pay it off, and that interest disappears. Over a year, the difference between paying in full and carrying a balance can be $100 or more.
Your payment history — the record of whether you pay on time — is the single largest factor in your credit score, making up 35% of the calculation. Missing even one payment can drop your score by 50 to 100 points and stay on your report for seven years. Making every payment on time, even if it is a small amount, is the fastest way to rebuild.
When to move from a bad-credit card to a standard card
After 6 to 12 months of on-time payments, your score will likely improve enough to may have access to for a standard card with better terms. You can check your score for free through AnnualCreditReport.com (the official government site) or through your bank's website — many banks now offer free credit monitoring to customers.
Once your score reaches 620 to 650, you become may be able to access for many standard cards. At 700 and above, you may have access to for cards with rewards, lower APRs, and no annual fees. The jump from a 580 score to a 650 score typically takes 12 to 24 months of perfect payments, depending on what else is on your report.
When you are ready to explore for a standard card, do not close your bad-credit card when ready. Closing it removes available credit from your report and can actually lower your score temporarily. Instead, keep it open with a small balance or a small monthly charge (like a streaming service you pay off each month). This keeps the account active and the positive payment history growing.
The difference between secured and unsecured bad-credit cards
| Feature | Secured Card | Unsecured Bad-Credit Card |
|---|---|---|
| Deposit required | Yes, $200–$2,500 | No |
| Typical APR | 18%–24% | 24%–36%+ |
| Annual fee | $0–$95 | $35–$99 |
| Credit limit | Equals your deposit | Typically $300–$500 |
| Time to conversion | 6–18 months | Not applicable |
| Best for | Building credit from scratch or after major damage | Avoiding a deposit or needing credit when ready |
Secured cards generally offer better long-term value because the APR is lower and many charge no annual fee. The deposit ties up your cash, but you get it back. Unsecured bad-credit cards let you start using credit right away without a deposit, but the higher APR and annual fees cost more if you carry a balance.
Choose a secured card if you have $200 to $500 available to deposit and can commit to 12 to 18 months of perfect payments. Choose an unsecured card if you need credit when ready and cannot spare a deposit, or if you are confident you will pay off your balance every month and avoid interest charges.
Common mistakes to avoid with bad-credit cards
The biggest mistake is carrying a balance. Many people think using a bad-credit card means charging money and paying it back slowly. In reality, the interest charges work against you. A $500 balance on a 25% APR card costs you $125 per year in interest. That money goes to the bank, not toward rebuilding your credit. Your credit score improves from on-time payments, not from carrying a balance.
Another mistake is explore for multiple cards at once. Each process triggers a hard inquiry, which temporarily lowers your score by a few points. Multiple inquiries in a short time signal to lenders that you are desperate for credit, which raises red flags. Space applications out by at least three months.
A third mistake is closing the card once you upgrade to a standard card. Your credit score depends partly on how long your accounts have been open and how much available credit you have. Closing an old account shortens your average account age and reduces your available credit, both of which lower your score. Keep the old card open and use it occasionally.
Frequently Asked Questions
Will a bad-credit card hurt my score more than help it?
No. The process itself causes a small, temporary dip (a few points), but on-time payments rebuild your score over months. After six months of perfect payments, most people see their score rise 50 to 100 points. The key is paying on time, every time.
Can I get a bad-credit card with no annual fee?
Yes, many secured cards charge no annual fee. Some unsecured bad-credit cards also offer no annual fee, though they typically have higher APRs to compensate. Compare the Schumer Box (the terms table) on each card's website to find the fee and APR side by side.
What credit score do I need to get approved?
Secured cards typically approve people with scores below 580 or no credit history at all. Unsecured bad-credit cards usually require a score of 500 to 650. Store cards vary by retailer but often approve people with scores in the 550 to 650 range. The exact threshold depends on the issuer's policy.
How long does it take to rebuild my credit with a bad-credit card?
Most people see meaningful improvement — 50 to 100 points — within 6 to 12 months of on-time payments. Reaching a score of 700 or higher typically takes 18 to 24 months, depending on what else is on your report (late payments, collections, or high balances take longer to recover from).
Should I use my bad-credit card for everyday purchases?
Yes, but only if you pay the balance in full each month. Small, regular charges (groceries, gas, a subscription) show the bureaus you use credit responsibly. Paying in full avoids interest and keeps your balance low, both of which help your score. Avoid large purchases you cannot pay off when ready.