How To Get A Credit Card With Bad Credit

You may have a harder time getting approved for a credit card if you have a bad credit score — or a score under 580, according to FICO.

Data from Bankrate’s CardMatch tool, which matches participating users with personalized offers from credit card issuers, shows that users with excellent credit had a 75 percent approval rate for all available CardMatch cards in 2023. Users with no credit or a limited credit history had a 29 percent approval rate, and users with bad credit faced a 23 percent approval rate. 

Without access to credit that you can use responsibly, it can be difficult to build or rebuild credit. That’s why knowing how to get a credit card is so important — it’s a simple way to help you start your credit-rebuilding process. 

If you’re wondering whether it is possible to get approved for a credit card with bad credit — one that can hopefully become a valuable financial tool, the answer is most likely yes. First, take a close look at your credit. Then, consider which card might be right for you. While you may not qualify for the best credit cards on the market yet, you can still get a credit card that’s right for your credit profile. Check out these steps:

1. Keep an eye on your credit score

Even if you know your credit score is less than ideal, check your exact score to determine within what range you fall. You might learn that you actually have fair credit, which can qualify you for more credit cards than if you find yourself with a poor credit score.

Knowing where your credit score stands can also help 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, so it’s a good idea to be selective with your applications.

You can check your credit score for free in a couple of different ways:

• Use a card issuer: Some credit card issuers — including American Express, Bank of America, Capital One, Chase, Discover and Wells Fargo — offer free credit score checks. Some issuers offer it to cardholders, while others let anyone use the service.
• Go through a credit bureau: Experian, a credit bureau, lets you check your FICO Score 8 for free. FICO Score 8 is the credit score most commonly used by lenders. You can also pay to view your score from any of the three major credit bureaus — Experian, Equifax and TransUnion — or the credit scoring company FICO.

Part of responsibly handling your credit means keeping track of your full credit history and ensuring it’s error-free. While the reports won’t show your actual score, they can give you an idea of what’s being factored into your score and let you check for any inaccuracies.

Go to AnnualCreditReport.com to request a free copy of your credit reports weekly from the three credit bureaus.

2. Research credit cards for bad credit

Once you know your actual credit score, you can start looking into cards. The most straightforward option to consider will be a secured card, but in addition to secured cards, you can look at unsecured options for those with poor credit, too. Even the best credit cards for bad credit tend to be light on benefits and heavy on fees and interest charges, but they can still give you a chance to prove your creditworthiness when others won’t.

Using Bankrate’s credit card comparison tool can help you look at multiple card details side by side. 

3. Prequalify without hurting your credit

If you’re unsure whether you’ll be approved for a card you like, you can get prequalified without a hard inquiry on your credit report. Many card issuers let you check for preapproval or prequalification for certain cards. 

You can also start with Bankrate’s CardMatch tool, which shows you which cards you’re likely to be approved for based on your credit score. Using this tool won’t impact your credit, either. 

4. Apply for a secured credit card

As mentioned previously, a secured credit card is one of the best options for people who want to establish or rebuild their credit. This type of credit card works by requiring an upfront security deposit, usually between $50 and $200. This deposit typically establishes your line of credit with the card. Your security deposit should be fully refundable when you graduate to an unsecured card or close your account in good standing.

Many secured cards even offer rewards for spending with no annual fee. For example, the Capital One Quicksilver Secured Cash Rewards Credit Card offers 1.5 percent cash back on all eligible purchases and unlimited 5 percent cash back on hotels and rental cars booked through Capital One Travel. The minimum $200 deposit becomes your credit limit — with a clear path to a higher limit.If you’re approved for a secured credit card, prioritize on-time payments each month and avoid exceeding your limit. This will help you build your credit score and prove to your card issuer that you can manage small amounts of credit responsibly. Just make sure you sign up with a reputable credit card issuer, so your payments are reported to the major credit bureaus.

Pros of secured credit cards

• Access to credit for those with a low credit score or no credit history
• Credit score improvement through on-time payments and responsible credit use
• Opportunity to upgrade to a traditional, unsecured credit card later on

Cons

• Security deposit required
• Low credit limit
• High interest rates if you carry a balance
• Limited opportunities to earn rewards or take advantage of other perks
• May not report card activity to some or all of the major credit bureaus

5. Consider a store credit 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. Store credit cards — also called retail credit cards — tend to be easier to qualify for, 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. Many store cards charge much higher interest rates than other credit cards and could include a deferred interest plan that can be both costly and misleading.

Pros of retail credit cards

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

Cons of retail credit cards

• High interest rates
• Low credit limit
• Limited spending and rewards at specific stores

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

One final way to build your credit score while practicing using credit responsibly is to become an authorized user on a trusted family member or friend’s credit card. As an authorized user, you’ll be added to their credit card account and can use the credit card to make purchases, but you won’t officially be on the hook for making payments. Just make sure to discuss any expectations and spending limits before you get added to the card.

Being an authorized user gives you the opportunity to  improve your credit based on someone else’s good credit habits. As long as the card issuer reports authorized users’ card activity to the credit bureaus, the card’s on-time payments and low credit utilization could improve your credit score. 

Pros of being an authorized user

• Opportunity to help you build credit without the responsibility of your own credit card
• No hard credit check requires

Cons of being an authorized user

• Potential to hurt your credit if you or the primary cardholder doesn’t use the card responsibly
• Potential negative impact to your relationship with the primary cardholder if you make mistakes with the card
• Rewards officially belong to the primary cardholder

What to watch out for when applying for a credit card with bad credit

If you do decide to apply for a credit card with bad credit, make sure you avoid doing the following:

• Skipping the preapproval process: Many card issuers offer a preapproval option that lets you find out if you’re qualified for a card before you apply. It doesn’t run a hard credit check, so it won’t impact your score. This way, you can apply only for cards you know you’ll most likely be approved for.
• Applying for too many cards at once: Most credit card applications require a hard credit inquiry, which can temporarily ding your credit score. Applying for multiple cards in a short period of time can be a red flag to issuers and may lower your score.
• Ignoring high interest rates or annual fees: Some subprime credit cards, especially unsecured cards, may come with much higher interest rates than other cards or charge an annual fee. Before you apply for a card for bad credit, make sure to read the fine print and become  comfortable with the terms.
• Using credit irresponsibly: Building credit takes time, and misuse of any new credit could further damage your credit score. You can work toward improving your credit by making on-time payments and not getting too close to your credit limit.

The bottom line

Bad credit can narrow your credit card options, but there are still ways to access credit and start rebuilding your credit score. First, check your credit score to make sure you actually have bad credit. Then, you can apply for a card in your credit range, like a secured card, or see if you can become an authorized user on someone else’s card. Once you have a card, prioritize using it responsibly, borrowing only what you can afford and paying your balance on time each month.

The card you now get doesn’t have to be your only card forever. With good credit-building habits, you can graduate to a card with better rewards and benefits in time.

Frequently asked questions (FAQs) about getting a card with bad credit

• Is there a minimum score to get a credit card?
  

  There is no standard minimum score to get a credit card — instead, card issuers set their own minimum credit scores that vary by card. You can find options for people with bad credit and even no credit — typically in the form of a secured or student card.

• Can you get a credit card with bad credit?
  

  Yes, it’s possible to get a credit card with bad credit, including a score of 550. But, typically, the higher your score, the better the options available to you — including rewards rates, interest rates and annual fees.

• What are other ways I can improve my credit?
  

  Improving your score comes down to consistently paying your bills on time — especially those that are reported to the credit bureaus, keeping your credit utilization low and practicing other healthy credit card habits.

• How can I improve my credit without a credit card?
  

  If you don’t own a credit card, things like a credit-builder loan or personal loan can help build your credit history. Just be sure not to borrow more than you can comfortably pay off.

  You can also try the service Experian Boost, which can help you increase your score with minimal effort.

  Information about rent, utilities and subscription payments are rarely reported to the credit bureaus. Experian Boost adds that alternative data to your credit report, which can quickly raise your credit score — but only if it reports positive data. To make sure Experian Boost has nothing negative to add to your credit report, you’ll have to continue to pay your bills on time and in full every month.