You can get a credit card with bad credit, but you will pay higher interest rates and deposit money upfront
Banks and card issuers do lend to people with low credit scores. They use secured cards (which require a cash deposit), unsecured bad-credit cards (which do not), and store cards (issued by retailers). The tradeoff is real: interest rates run 24% to 36% annually, annual fees range from $0 to $99, and credit limits are usually $300 to $2,500. Your credit report and current income matter more than your score alone—issuers want to see that you have not defaulted recently and that you earn enough to make payments.
The process itself takes 5 to 10 minutes online or by phone. You will need your Social Security number, current address, employment information, and monthly income. Most decisions come back within minutes to a few business days. The card arrives by mail in 7 to 14 days, though some issuers let you use it online when ready after approval.
Key Takeaways
- Secured cards require you to deposit $200 to $2,500 in a savings account; the deposit becomes your credit limit and stays in the bank while you use the card.
- Unsecured bad-credit cards charge higher interest and fees but do not require a deposit, making them faster to use if you are approved.
- Your recent payment history and current income matter as much as your credit score—issuers reject applicants with recent defaults even if the score is not extremely low.
- Using the card responsibly for 6 to 12 months (paying on time, keeping your balance below 30% of the limit) can lead to a credit limit increase or an offer to graduate to a regular card.
Secured cards: deposit money, build credit
A secured credit card is the most straightforward path if your credit score is below 580 or you have recent missed payments. You deposit cash into a savings account held by the card issuer. That deposit becomes your credit limit. If you deposit $500, your limit is $500. The bank holds the deposit the entire time you own the card—you cannot spend it, and it does not reduce as you charge purchases.
You make monthly payments on your balance just like a regular card. Interest accrues on what you owe, not on the deposit. After 6 to 24 months of on-time payments, many issuers convert the card to an unsecured card, return your deposit, and raise your limit based on your payment history. Some cards let you request conversion earlier if you have made 12 consecutive on-time payments.
Secured cards typically charge annual fees of $0 to $49 and interest rates of 18% to 24%. The deposit requirement is the main barrier—you need $200 to $2,500 available upfront. If you have that money and can leave it untouched, a secured card is usually the fastest way to improve your credit score because the deposit removes the issuer's risk.
Unsecured bad-credit cards: no deposit required
An unsecured bad-credit card does not require a deposit. The issuer approves you based on your credit report, income, and recent payment history alone. This is faster to set up if you do not have savings available, but the issuer charges higher interest and fees to offset the risk.
Interest rates on unsecured bad-credit cards typically range from 24% to 36%. Annual fees run $35 to $99. Some cards charge a one-time processing fee of $75 to $150 added to your first bill. Credit limits are usually $300 to $750 for first-time applicants. After 6 to 12 months of on-time payments, you may receive a credit limit increase or an offer to move to a card with lower rates.
Approval odds are higher with unsecured cards if you have a job and no recent defaults (within the last 12 months). If you were discharged from bankruptcy more than two years ago or have a single missed payment from over a year back, many unsecured issuers will still approve you. The trade-off is that you pay more in interest while you rebuild.
Store cards and gas cards: easier approval, limited use
Retail store cards and gas station cards are often easier to get approved for than bank-issued cards, even with bad credit. Target, Walmart, Amazon, and most gas stations offer their own cards. These cards work only at that retailer or network, so they are not a replacement for a general-purpose card—but they can be a stepping stone if you are rejected elsewhere.
Store cards typically have higher interest rates (20% to 30%) and lower credit limits ($300 to $1,000), but approval is faster and annual fees are usually $0. Using a store card responsibly for several months can help you move toward approval for a bank card. Some people open a store card first, use it for three to six months, then explore for a secured or unsecured bank card with a stronger payment history.
What happens during the process process
Most card issuers let you start an process online in under 5 minutes. You will enter your name, address, date of birth, Social Security number, employment status, employer name, job title, and monthly gross income. Some issuers ask for your rent or mortgage payment and other monthly debts. Be honest about income—issuers verify it, and lying is fraud.
The issuer pulls your credit report from one or more of the three major bureaus (Equifax, Experian, TransUnion). This pull is a hard inquiry and lowers your score by 5 to 10 points. Multiple applications within 14 days usually count as a single inquiry, so if you are explore to several cards, do it within two weeks to minimize the damage.
Decisions come back when ready for most applicants, though some issuers take 1 to 3 business days to review. If you are approved, the card ships within 7 to 14 days. Some issuers provide a temporary card number you can use online when ready. If you are denied, the issuer sends a letter explaining the reason—usually low score, recent missed payments, or insufficient income. You can request a reconsideration by phone within 30 days, especially if your income has increased or if there is an error on your report.
Documents and information you need before you explore
| Information Type | What You Need | Why |
|---|---|---|
| Identity | Full legal name, date of birth, Social Security number | Issuer verifies your identity and pulls your credit report |
| Address | Current mailing address | Card ships to this address; issuer confirms you live there |
| Income | Monthly gross income and employer name | Issuer checks whether you can afford minimum payments |
| Employment | Job title and how long you have worked there | Shows income stability; recent job changes may lower approval odds |
| Deposit (secured cards only) | $200 to $2,500 in a savings account | Becomes your credit limit; you transfer it to the issuer's account |
Using your new card to rebuild credit
Getting approved is the first step. Building credit happens over the next 6 to 12 months. The three things that matter most are: paying on time every month, keeping your balance below 30% of your credit limit, and not closing the account.
Set up automatic payments for at least the minimum due, ideally the full balance. Missing even one payment will damage your score and may trigger a penalty interest rate (often 29% or higher). If you cannot pay the full balance, pay as much as you can—the issuer reports your payment status to the credit bureaus, and on-time payments are the single biggest factor in rebuilding your score.
Keep your balance low. If your limit is $500, try not to carry more than $150 in charges. High balances hurt your score even if you pay on time. After 6 months of on-time payments and low balances, many issuers raise your limit without a hard inquiry. After 12 months, you may be offered a regular card with better terms, or you can request a conversion if you have a secured card.
Frequently Asked Questions
Will explore for a bad-credit card hurt my score?
Yes, but only temporarily. The hard inquiry lowers your score by 5 to 10 points. This damage fades over three to six months. The benefit of on-time payments over the next 6 to 12 months will more than offset this initial drop. explore to multiple cards within 14 days counts as one inquiry, so batch your applications if you are shopping around.
What is the difference between a secured card and a prepaid card?
A secured card is a credit card backed by your deposit. You borrow money, make payments, and build credit history. A prepaid card is not a credit card—you load money onto it and spend only what you loaded. Prepaid cards do not build credit because they do not report to credit bureaus. If you want to rebuild credit, use a secured credit card, not a prepaid card.
Can I get a credit card if I have an active bankruptcy?
Most issuers will not approve you while a bankruptcy is active. After discharge, you can usually get a secured card within a few months. Some issuers specialize in post-bankruptcy lending and may approve you sooner. Wait at least 30 days after discharge before explore, and be prepared to explain the bankruptcy in a reconsideration call if you are denied.
How long does it take to move from a bad-credit card to a regular card?
Most issuers review your account after 6 to 12 months of on-time payments. Some offer automatic conversion or a credit limit increase without asking. Others require you to request it. You can also explore for a different card from another issuer after 6 months of good payment history. Your score will improve faster if you have multiple cards reporting on-time payments, but only explore for what you actually need.
What if I am denied for a bad-credit card?
If you are denied, the issuer sends a letter with the reason. Common reasons are very recent missed payments (within 90 days), a recent bankruptcy, or income below the issuer's minimum. You can call the issuer and ask for reconsideration, especially if your income has increased or if there is an error on your credit report. You can also try a different issuer—approval standards vary. A secured card is your most reliable option if you are denied by multiple unsecured issuers.