How To Get A Credit Card With Bad Credit

A credit card is a very handy financial tool to have. They’re great for emergencies, the mall, and even your daily coffee. But not all people are eligible, and if you’re new to credit or have low credit scores, it can be almost impossible to get approved. As a result, you may be forced to take out an unsecured loan from a bank or credit union, which can get very expensive. Or you can apply for a secured credit card to help improve your credit score. Securing a credit card is different from opening a bank account, although they may have similar amounts on deposit. According to the Consumer Financial Protection Bureau (CFPB), secured credit cards are one of the most reliable tools for rebuilding credit when used responsibly. This guide will outline several options for getting a credit card with bad credit so that you aren’t stuck in an expensive cycle of borrowing money.

#1 – Apply For A Store Card

The first place to look for a credit card is your favorite store. Many of them offer store credit cards to boost store traffic and encourage frequent shopping. Some of the better known store credit cards are from Target, Walmart, and Macy’s. They have great rewards programs so that they can be worth the hassle. Try to get a card with no annual fee and a low balance transfer rate (if you have no plan on paying it off every month). Store cards are often issued by large banking partners — for example, the Target RedCard is issued in partnership with TD Bank, while the Walmart Rewards Card is backed by Capital One. Because these issuers rely on retail partnerships rather than strict bank underwriting standards alone, approval requirements tend to be more lenient. According to NerdWallet’s analysis of store cards for bad credit, many retail cards approve applicants with FICO Scores in the 580–620 range.

#2 – Apply For A Rewards Card

Another place to find a credit card is through an online rewards program like an American Express card. These cards usually have higher interest rates and fees, but they can offer better perks. For example, you may be able to get double points when you redeem them for certain things at a certain store. Additionally, some of these cards are worse for your credit score than others. Always pay off the balance on time each month so that your score improves over time. Keep in mind that applying for multiple rewards cards in a short period can trigger several hard inquiries on your credit report, which the credit bureau Experian notes can temporarily lower your FICO Score by a few points each.

#3 – Find A Card That Offers Rewards For Good Behavior

Some banks offer credit cards for people with low credit scores. This means that if you pay your balance off every month, you should be able to keep a good credit score. Some of these offers include rewards programs, too – just make sure to read the fine print and get the card with the lowest rates and fees. You may also want to consider a card that offers cash back on gas, groceries, or other items because those can lead to savings down the road. For instance, the Discover it Secured Credit Card — one of the more consumer-friendly options in this category — offers 2% cash back at gas stations and restaurants and reports to all three major credit bureaus monthly, helping you build a positive payment history faster. According to the Federal Reserve’s consumer credit report, responsible use of a credit-builder card over 12 months can meaningfully improve a borrower’s credit profile.
#4 – Apply With A Credit Union
Credit unions usually have lower credit score requirements than banks, offering better savings and interest rates. Many credit unions will require that you work for a certain company, live in a certain area, or have family members who are already members. It’s not always easy to get approved, but it can be worth the effort. Once you’re a member, one may be eligible for a secured credit card that can help boost your score. The National Credit Union Administration (NCUA) regulates federally chartered credit unions and requires that they cap interest rates on most loans at 18% APR — significantly lower than the rates many bad-credit cards charge. You can search for a credit union you qualify for through the MyCreditUnion.gov locator tool maintained by the NCUA.

#5 – Get A Low Interest Credit Card With A Balance Transfer

Balance transfers with a credit card are very common. You start out the year with a high balance that you know you can’t pay off. Once the balance drops, you can transfer the full amount to your credit card without paying extra interest. This process takes time, though, so try to plan ahead if you’re considering one. It’s also worth noting that your debt-to-income ratio (DTI) — a measure lenders use to assess how much of your income goes toward existing debt — can affect whether you qualify for a balance transfer offer. The CFPB recommends keeping your DTI below 43% to maintain healthy borrowing options.

#6 – Apply For A Low Interest Loan

If you have approved credit from a bank or another lender, you will be able to get a secured credit card. These loans usually don’t have high-interest rates, and they almost always have low monthly payments. You can also get longer loan terms, so there’s no need to rush. Look at the financials of the loan carefully before signing the contract, and remember not to apply for more debt than you can afford. Online lenders like SoFi and Upgrade have expanded access to personal loans for borrowers with fair or rebuilding credit, sometimes requiring a minimum credit score of just 580. However, always verify that any lender you use is registered with the FDIC or NCUA, or is otherwise supervised by a state financial regulator, before submitting a full application.

#7 – Try Some Phone And Online Approval Programs

If you’re just getting started with credit, it can be tough to get approved for anything. However, some charities and credit companies offer your first card completely free. These programs are almost always unsecured and won’t affect your credit score at all. They also have very low interest rates and fees, so they should be easy to pay off without a problem. You can find these phone and online approval programs from your local library, charity, or bank. Nonprofit credit counseling agencies accredited by the NFCC can also point you toward legitimate entry-level credit products and help you avoid predatory issuers. According to the NFCC’s consumer guides, working with an accredited counselor before applying for credit can improve your long-term financial outcomes significantly.

#8 – Research The Companies You Want To Get Credit From

This may seem obvious, but it’s important to know the companies with which you want to apply for a credit card. This will help you know what kind of services they provide and what kind of account you’ll have access to. Keep in mind that some credit card companies offer limited products that are better suited for people with very high credit scores. You can check a card issuer’s complaint history using the CFPB’s Consumer Complaint Database, which publishes publicly searchable records of complaints filed against financial companies including Chase, Citibank, and Capital One. Researching a company’s standing with the FDIC or checking third-party review sites like Bankrate before applying can save you from costly surprises down the road.

#9 – Look For Prepaid Cards With Low Minimum Payments

There are a few prepaid cards available with attractive terms. Some of these cards have low annual fees, interest rates, and rewards. These cards can work well for people who already have a credit history or are trying to rebuild their scores. Again, read the fine print before applying, and do not take on more debt than you’re comfortable with. Keep in mind that true prepaid debit cards — as opposed to secured credit cards — typically do not report to the credit bureaus and therefore will not directly improve your FICO Score. If building or rebuilding credit is your primary goal, make sure the product you choose explicitly states that it reports your payment activity to Experian, Equifax, and TransUnion each month.

#10 – Get A Secured Credit Card That’s Better For Your Credit

If you’re looking to improve your credit score, it can be extremely difficult to get approved for a secured credit card. Some secured credit cards out there have much higher interest rates and fees than a normal credit card. However, just like unsecured cards, the fees will be dwarfed by the rewards earned over time if you manage the account responsibly. Just make sure to pay off the balance on time each month so that your credit score improves. Some of the most recommended secured cards for credit building include the Discover it Secured, the Capital One Platinum Secured, and the OpenSky Secured Visa — the last of which does not require a credit check at all. According to Bankrate’s secured card rankings, the best options combine low annual fees with automatic review for an upgrade to an unsecured card after 6–12 months of on-time payments.

Set Up A Payment Plan

If you’re unable to get a credit card right now, you may be able to set up a payment plan. This is most commonly used for medical expenses and utility bills, but it can work with any sort of debt as well. The last thing you want is to get into a cycle of borrowing money and paying interest on it, so make sure you are getting approved for the right kind of credit – pay off the debt quickly, and avoid accumulating more debt. The CFPB also recommends pulling your free credit report from all three bureaus — Experian, Equifax, and TransUnion — at AnnualCreditReport.com before applying for any new credit product. Reviewing your report for errors and disputing inaccuracies can sometimes improve your FICO Score quickly enough to unlock better card options without any new debt at all.

Frequently Asked Questions

Can I get a credit card with a credit score below 580?

Yes. Secured credit cards, such as the Capital One Platinum Secured and the OpenSky Secured Visa, do not require a minimum credit score. You provide a refundable security deposit — typically $200 to $500 — which becomes your credit limit. These cards report to all three major credit bureaus each month, helping you build a positive payment history over time.

What is the easiest credit card to get approved for with bad credit?

The easiest credit cards to get approved for with bad credit are secured credit cards that do not require a credit check. The OpenSky Secured Visa is widely cited as one of the most accessible options because approval is based primarily on your ability to fund the security deposit rather than your FICO Score. Store cards from retailers like Target and Walmart are also considered relatively easy to obtain.

How long does it take to build credit with a secured credit card?

Most consumers begin to see measurable credit score improvement within 6 to 12 months of consistent, on-time payments on a secured credit card. Since payment history accounts for 35% of your FICO Score according to myFICO, even a single missed payment can set back your progress significantly. Keeping your credit utilization ratio — the percentage of your available credit that you are using — below 30% will further accelerate improvement.

Does getting a store credit card hurt your credit score?

Applying for any credit card, including a store card, triggers a hard inquiry on your credit report, which can temporarily lower your FICO Score by a few points. However, the long-term benefit of adding a new account with a positive payment history typically outweighs this short-term dip. Applying for several cards at once is more damaging, so try to space out applications by at least 90 days.

What is the difference between a secured credit card and a prepaid debit card?

A secured credit card requires a refundable security deposit and functions as a true line of credit — your payments are reported to Experian, Equifax, and TransUnion each month, building your credit history. A prepaid debit card, by contrast, is loaded with money you already own and does not involve any borrowing or credit reporting. Prepaid cards do not help build or rebuild credit according to the CFPB.

What credit score do I need for a rewards credit card?

Most premium rewards cards from issuers like American Express and Chase require a FICO Score of 670 or higher, placing them in the “good credit” tier. However, some entry-level rewards products — such as the Discover it Secured — offer cash back even to applicants with no established credit score. As your score improves, you can apply to upgrade or graduate to an unsecured rewards card.

Can I get a credit card from a credit union with bad credit?

Yes. Credit unions typically have more flexible approval criteria than traditional banks and are regulated by the NCUA, which caps most loan interest rates at 18% APR. You will need to qualify for membership — usually based on your employer, geographic area, or family affiliation — before applying for a card. Once you are a member, a secured credit card from a credit union can be one of the most affordable options available to people with bad credit.

What is a debt-to-income ratio and why does it matter for credit card approval?

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward existing debt payments. Lenders use it — alongside your FICO Score — to assess how likely you are to repay new debt. The CFPB recommends keeping your DTI below 43% to maintain healthy borrowing options. A high DTI, even with an improving credit score, can lead to denial or a lower credit limit on a new card.

Does applying for a credit card affect my credit score?

Yes. Each full credit card application results in a hard inquiry on your credit report, which can reduce your FICO Score by up to 5 points temporarily. Soft inquiries — such as pre-qualification checks offered by many issuers including Discover and Capital One — do not affect your score. Always use pre-qualification tools first to gauge your approval odds before submitting a formal application.

What should I look for when comparing credit cards for bad credit?

The most important factors to compare are the annual fee, APR, security deposit requirement (if applicable), whether the card reports to all three credit bureaus, and whether the issuer offers a path to upgrade to an unsecured card. Avoid cards with excessive monthly maintenance fees or application fees, which the CFPB warns can significantly inflate the true cost of a card marketed to consumers with bad credit.