How to get a credit card with bad credit

Getting access to credit can be tricky if you have a bad credit score. But the best way to improve your credit score is by proving you can use credit responsibly. Knowing how to get approved for a credit card with bad credit can help you start the process of rebuilding your credit.

In addition, there are perks to having at least one credit card in your wallet. Credit cards offer the convenience of making purchases right away and paying them off later — and if you pay off your balance before the due date, you usually won’t be required to pay interest. Many credit card issuers also offer consumer protections and a higher level of security against fraud compared to debit cards.

Another feature of some credit cards are the potential rewards. Credit card rewards typically come in the form of cash back, points or miles and can help you save money on purchases and travel.

Some cardholders may try to maximize the credit card rewards they can earn — even if they’re in debt. Sixty-seven percent of credit cardholders who carry a balance month to month make “every effort” or “some effort” to maximize credit card rewards, according to Bankrate’s 2024 Credit Card Rewards Survey.

While trying to earn credit card rewards when carrying a balance isn’t ideal, it’s understandable that cardholders would want to maximize the value they get out of their cards — even if the rewards value would be minimal compared to what’s being spent on interest.

Those with bad credit should also consider maximizing the value they could get from signing up for a new credit card — but that value won’t come from rewards. Getting a new credit card while you have bad credit means that your focus will be on using the card to help you raise your credit score while providing you with manageable buying power, when used responsibly.

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.

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. Apply for a secured credit card

A secured credit card is a tool that can help 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 establishes your line of credit with the card.

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. Doing so will sometimes prompt your issuer to refund your deposit, raise your credit limit and upgrade you to an unsecured card. 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 of secured credit cards

• 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

Learn more: How to choose a secured credit card

3. 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. 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 costs you more money than you might 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
• Possibility of store discounts and rewards

Cons of retail credit cards

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

4. 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. But keep in mind that as an authorized user, your credit score can also be negatively impacted if the primary cardholder practices bad credit habits. It’s helpful to know about the primary cardholder’s credit history and financial habits before asking to be added as an authorized user.

Pros of being an authorized user

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

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 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.

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. 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.