How to get a credit card with bad credit

The best way to improve your credit score is by proving you can use credit responsibly. But if you have poor or bad credit, you might find it difficult to get lenders to offer you new credit accounts. Knowing how to get a credit card with a bad credit score is essential to rebuilding your credit.

It’s a good idea to have at least one credit card, even if you have bad credit. Credit cards offer more consumer protections than debit cards, for example, giving you more security against fraud.

Credit cards offer the convenience of making purchases right away and paying them off when your statement is due — and if you pay off your statement before your grace period ends, you usually won’t pay interest on your purchases. Many credit cards even offer rewards, helping you to save money as you shop.

But where do you start when you have a low credit score and need a credit card? We share advice on how to find a credit card with bad credit, as well as tips to help you build your credit after you’re approved.

1. Check and understand your credit score

Even if you know your credit score is less than ideal, you should find out the exact number and understand the credit score range you fall within. You could learn that you actually have fair credit, which can qualify you for many more credit cards than poor credit.

Checking your credit score and knowing your credit health helps you avoid applying for cards you’re not likely to qualify for. Most credit card applications trigger a hard credit inquiry, which typically drops your score by a few points. Hard inquiries aren’t inherently bad, but it’s important to be intentional about when you trigger them.

You can get your credit score for free in a few ways.

• Most major banks and credit card issuers — including Bank of America, Wells Fargo and Capital One — offer free credit scoring and tracking services to their customers. If you have an existing banking or credit relationship, sign in to your account or app to learn whether you can sign up to see your credit score.
• American Express’s MyCredit Guide is a tool that allows you to see your TransUnion credit score and report for free. And you don’t need to be an American Express customer to use it.
• Credit bureau Experian provides monthly Vantage 3.0 credit scores if you sign up for its free credit monitoring service. You can also purchase your score from any of the big three credit bureaus — Experian, Equifax and TransUnion — or FICO.

2. Apply for a secured credit card

A secured credit card is a tool designed for people with bad credit who want to build or rebuild a positive credit score. That said, these cards come with a caveat: You must put down a security deposit of $50 to $200 or more before you’re able to use the card. In many cases, the line of credit extended to you is equal to the deposit you put down. This means that if you make a $200 deposit, you’ll receive a secured credit card with a $200 credit limit.

If you’re approved for a secured credit card, you’ll want to prioritize on-time payments each month and avoid exceeding your limit. To build your credit score and graduate to an unsecured card, you’ll need to prove that you can manage small amounts of credit responsibly. It matters less how much credit you have and more how well you use your available credit. That means keeping your credit utilization rate below 30 percent, if possible — which can be tricky if you have a small credit limit.

Just make sure that the card you’re interested in reports your payments to the major credit bureaus, or the card will not help you to rebuild your credit score.

The best secured credit cards connect you with apps and educational tools to help you track your spending, stay on top of payments and quickly build or rebuild credit.

Pros of secured credit cards

• Access to credit, which can otherwise be difficult for those with a low credit score or no credit history
• Build or rebuild your credit score and a positive credit history through on-time payments and responsible credit use
• Graduate to a traditional, unsecured credit card after you’ve proven your ability to manage credit — sometimes automatically

Cons of secured credit cards

• Requires a security deposit of $50 to $200 or more, which becomes your line of credit
• With credit lines tied to security deposits, your credit limit may be low
• High interest rates make it expensive to carry a balance on the card
• Limited opportunities to earn rewards or take advantage of other perks
• Not all issuers report responsible use to the major credit bureaus

3. Consider a card designed for poor credit

You’ll find many cards marketed to those with low or poor credit. Some of these cards are secured credit cards, while others are traditional usecured credit cards.

Credit cards for people with bad credit tend to have low credit limits, but if you use your card responsibly, you can work toward good credit — and you might even be upgraded to a better credit card.

The best credit cards for bad credit can help you build your credit score while earning rewards on everyday purchases.

Pros of credit cards for bad credit

• Access to credit without a security deposit
• Build your credit score through responsible credit use
• Potential to graduate to a card offering lower interest or stronger perks with responsible use
• Some allow you to earn rewards on purchases

Cons of credit cards for bad credit

• Often low credit limits, making it difficult to finance large purchases on your card
• High interest rates
• If you’re not responsible, you can easily rack up more than you can comfortably pay off

4. Sign up for a store card

If you’re wondering how to get a credit card with bad credit, the answer might be as close as your nearest checkout lane. Retail credit cards tend to come with more lenient application requirements than other types of credit cards, which means you might be able to qualify for a store credit card even if your credit isn’t very good.

That said, just because retailers offer credit cards for people with bad credit doesn’t mean store credit cards are your best option. Most retail credit cards charge significantly higher interest rates than standard credit cards, and your retail credit card might include a deferred interest plan that could cost you a lot more money than you realize.

If you’re thinking about applying for a store card, read our guide on whether store cards are worth it.

Pros of retail credit cards

• Good approval odds, even with poor credit
• Opportunity to build your credit score through responsible use
• Earn discounts and rewards

Cons of retail credit cards

• Often high interest rates
• Rewards limited to specific stores or chains

5. Become an authorized user on someone else’s card

If you want to build your credit score without approval for your own line of credit, consider becoming an authorized user on a trsuted family member or friend’s credit card. Becoming an authorized user is a great way to piggyback on a spouse’s or parent’s good credit habits. If they use their credit card responsibly, your credit score could go up.

Many credit card issuers report authorized user accounts to the three major credit bureaus. When the primary user makes an on-time payment, it’s recorded as an on-time payment in your credit report as well. You can also benefit from the primary user’s credit utilization ratio and length of credit history.

If someone you trust is willing to make you an authorized user, suggest that they add you to their rewards credit card. That way, you can earn rewards on every qualifying purchase — and together, you can rack up even more points.

Pros of becoming an authorized user

• Build credit without the responsibility of your own credit card
• Does not require a credit history
• Allows parents to add teens as authorized users, giving them a credit-building head start

Cons of becoming an authorized user

• If the card issuer doesn’t report authorized user accounts to the credit bureaus, your credit score won’t benefit
• If the primary user doesn’t manage their credit account responsibly, your credit score won’t improve — and could possibly go down
• You and the primary user draw from the same line of credit, which means you’ll need to check in often to avoid overspending your shared credit limit

FAQs about getting a card with bad credit

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  Is there a minimum score to get a credit card?

  No. Among the credit cards available, you’ll find options designed for people with bad credit and even no credit — typically in the form of a secured or student card.
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  Can I get an unsecured card with a 550 credit score?

  Yes, it’s possible to get an unsecured credit card with bad credit, including a score of 550. Yet the higher your score, the better the options available to you — especially in terms of rewards rates, interest rates and annual fees.
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  What are other ways I can improve my credit?

  Improving your score is as simple as consistently paying your existing bills on time, lowering your credit utilization ratio and practicing other healthy credit card habits. If you don’t yet own a credit card, consider a credit builder loan or applying for a personal loan to build a credit history. Just be sure not to borrow more than you can comfortably pay off.

The bottom line

Bad credit can limit your credit card options, but there are plenty of accessible credit-builder cards on the market. First, check your credit score to make sure you actually have bad credit. Then compare and apply for a card that’s geared for your credit range. Once you receive it, use it responsibly, borrowing only what you can afford and paying your bill on time each month — ideally in full to avoid high-interest debt.

If you can’t find a credit card that meets your needs, consider becoming an authorized user. This way, you can build your credit score until your financial health is solid enough to qualify for the cards you’re interested in.